Online Professional Paid Tax Registration

Professional Tax Registration is a tax imposed by the State government. Professional tax is imposed on income earned in any trade or profession and is usually paid by the employer. The total professional tax payable with reference to any one person to the State or to any local authority in the State by way of taxes imposed on professions, trades, callings and employments should not exceed rupees two hundred fifty and two thousand five hundred rupees per annum.

It is a type of tax imposed on all professions, trades and employment and levied based on the income of such profession, trade and employment. It is imposed on employees, a person carrying on business including freelancers, professional etc. subject to income exceeding the monetary threshold. State government are entitle to make laws with respect to professional tax though being tax on income under Article 276 of the constitution of India which deals with tax on professions, trades, callings and employment. Professional tax is a deductible amount for the purpose of Income-tax Act, 1961 and can be deducted from taxable income.

Professional tax is collected by the Commercial Tax Department. The commercial tax department of the respective states collects it which eventually reaches the fund of Municipality Corporation. The professional tax is a source of revenue for the State Government which helps the state govt. in implementing schemes for the welfare and development of their respective region.

WHO ARE RESPONSIBLE TO PAY PROFESSIONAL TAX?

In case of employees, an employer is responsible to deduct and pay professional tax to the State Government on behalf of his employees subject to the monetary threshold if any provided by respective state’s regulations, employer (corporate, partnership firms, sole proprietorship etc) also being a person carrying on trade or profession is also required to pay professional tax on his trade or profession again subject to the monetary threshold if any provided by respective State’s regulations.

PROFESSIONAL TAX RATE

The maximum amount due per annum towards professional tax is INR 2,500. The professional paid tax registration is charged based on income slabs rate on the gross income of the professional. It is to be deducted from his income every month. In case of Salaried and Wage-earners, the Professional Tax is liable to be deducted by the Employer at the time of payment from the Salary or Wages, and the Employer is liable to deposit the same with the state government. In case of other class of Individuals, the very person is liable to be pay it himself.

EXEMPTED PERSONS FROM PAYING PROFESSIONAL TAX

Foreign employees are exempt from paying profession tax.

Indian employees employed by the Foreign office and consultant are exempted from taking the certificate of registration.

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