Skip to main content

Register Professional Tax in India

Register Professional Tax


Professional Tax is a tax charged by the State Government. The amount differs from state to state. As the name suggests this tax is levied on anyone earning the salary by employments, trades, callings or practicing a profession like Lawyer, Doctor or Chartered Accountant. This tax is levied on basis of the income of an individual. Some states do not follow the concept of Professional tax. States like Maharashtra, Karnataka, West Bengal, Madhya Pradesh, Tamil Nadu and Gujarat levies this tax. However, states like New Delhi and Rajasthan have no such tax (yet!). As per the Government of India, the maximum amount of this tax can be Rupees two thousand and five hundred per annum only. However, there have been many requests from states itself, so as to raise this amount to Rupees seven thousand and five hundred.  Register Professional Tax in India with the help of experts.
The employer deducts the Professional tax from the salary of their employees and pays the amount to their respective State Governments. In order to submit the collected amount to the Government, employers first have to register. A Professional Tax registration application is drafted by the employer. This application is submitted to the State's Tax department within thirty days of employing a person. Since the tax differs from state to state, the employer needs to ensure that registration is made accordingly. In the case of more than one workplace in different States, different registrations will be required. You will require following documents for the registration:
  • A copy of PAN Card of your company.
  • Registration Certificate.
  • A copy of Memorandum Of Association and Article Of Association.
  • List of Directors/Partners.
  • Identity and Address Proof of Directors/Partners.
  • A copy of Resolution of Board of Directors.
  • List of employees.
  • Address proof/Rental agreement of registered office/factory/warehouse.
  • Electricity/Maintenance Bill of registered office/factory/warehouse.
  • Canceled cheque from Company's bank account.
All these documents along with Professional Tax registration application and fees are submitted to the State's Tax department. Upon verification, a registration certificate is issued. Hence, your Professional Tax Registration is successfully completed.
The Tax is mandatory for all the earning individuals both from the government as well as non-government sector. Employers are the one who is responsible for the collection and submission of this tax. They are mentioned at the time of filing of annual returns. Ignorance of the tax can lead to a penalty. For the specific state, you can visit the online site of their tax department for the registration also. We, at LegalRaasta, can help you register your Professional tax and make the process quick and easy for you.
For more information please visit legalraasta.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.

Comments

Post a Comment

Popular posts from this blog

How can digital marketing help your startup to grow faster?

No one can deny the fact that startups need recognition. Startups, being new to the market, need to tell people that they exist. Market primarily consists of potential customers, investors as well as partners. And these are vital for any business. Without marketing, you and your startup is nothing. No one knows you, so they won’t even bother to spare you a glance. Your idea may be unique and outstanding, but without marketing, that idea is completely useless. Being an entrepreneur, you need to know how to sell your products and services. To sell, people need to know about your existence. You need to attract them. To attract customers, you need marketing. Now, there are two primary forms of marketing. First is traditional marketing and the second being, digital marketing. How are you supposed to choose the best way? How are they going to help? The same is discussed below. Traditional marketing is nothing but the old ways of promoting a company. It can be done via posters and banners. ...
7 comments
Read more

The 3 Relationships That Matter When Your Company Is Being Acquired

Getting acquired is one of the major moments of your life. It is a mix bag of feeling because your startup is like a baby that you nurtured from the start and now after selling it away, things will never be the same and you might not have the same freedom to run that business as you used to. The whole process itself is very tedious and involves a lot of aspects. Your legal advisor and countless manuals may furnish you with all the details however you might not have anyone who would guide you how to handle the people aspect related to you’re the whole process of acquisition. So let me help you now. There are a lot of people involved and you need to have cordial relation with almost all of them and have no grudge against any. During this delicate time, it is essential for you to maintain your calm and no matter how stressed you are from the inside, you must stay calm on the outside. And in this critical time, it is imperative for you to have soft skills and here are three important rela...
2 comments
Read more

5 Tips to Help Your Startup Operate Smoothly from Day 1

To pass the different stages of building a startup, you need not climb the treacherous mountains but pass through the valleys paved by others. Starting your own venture can be a quite daunting task. The can be like hurtling down a potholed road with the ups and downs and the unpredictability that takes extra efforts to overcome. It is good to heed the advice of the experienced people. It is always advised to take away from experiences of a person who has gone through the potholed road. To be an entrepreneur in competitive times like these can be a daunting and a demanding task. You need to give in all you have with zero complaints. The following are the best ways to get through the startup transition on day 1: 1. Keep your heart full, your mind clear and your body active You need to keep yourself well through the transition process. It’s good to take some time out for yourself. Do some physical activity, read in your free time and learn every time. You need to understand that...
1 comment
Read more