Call Us on
Profession Tax Registration
Profession tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practising a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this profession tax. Different states have different rates and methods of collection.
Features-
- Professional tax is a tax levied by the various State Governments of India on salaried individuals, working in government or non-government entities, or in practice of any profession, including Chartered Accountants, Doctors, Lawyers etc or carry out some form of business. This form of tax is in practice for a long time and States were conferred the power of leveling the Tax under Clause (2) of Article 276. The Professional tax rates is based on the Income Slabs set by the respective State Governments. However, the maximum ProfessionTax that may be levied by any State has been capped at Rs 2500/-. The total amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act.
- The professional tax is a source of revenue for the State Governments which helps the different in implementing schemes for the welfare and development of the region.
- Professional Tax is deducted by the employers from the salary of the salaried employees and same is deposited with the State Government.
- For other individuals, they have to directly pay it to the Government or through the Local Bodies appointed to do so.
- The tax has to be collected and deposited as per the timeline provided by the respective State Government.
- In case, one fails to do so, penalty and late fee would be applicable.
- The Tax may be paid to the Government on Monthly, Semi Annually or Annually basis depending on nature of business and the respective State Laws. Professional Tax Return needs to be filed at the end of the Financial Year.