In spite of its name, the Professional Tax does not apply solely to professionals. The Tax is based on income and applies to all kinds of professions, trades, and employment. During the first 30 days after starting a business or profession, professional tax is imposed for freelancers, professionals, including doctors, accountants, chartered accountants, and employees in organizations. There is no need to register the professional tax registration at every location if a business has multiple locations. If you are located in India, then this article on the professional tax slab in India will answer all your questions.
Definitions under the 1975 Professional Tax Act
- The term “employee” applies to anyone who earns a wage, including:
- The employee who is paid from the Central Government’s or State Government’s revenues;
- Whether incorporated or not, an organization controlled by the central or state governments that operates within the municipality but its headquarters are located elsewhere;
- Persons who are not covered by subclauses work for an employer.
- It can be an establishment or office head, as well as the employer’s agent or manager, who distributes an employee’s salary regularly under his control.
- “Full year” means the period covering April 1st through September 30th, followed by October 1st through March 31st of the following year;
- A calendar month is referred to as a “month.”.
5. In India people with Hindu undivided families or HUFs, firms, companies, corporations, or other corporate entities are considered “people.” 7. A person is defined as actively or passively engaging in any profession, trade, calling, or occupation. In addition, it includes societies, clubs, groups, and organizations that engage in such activities, but excludes casual employees.
6. A “tax” refers to a tax imposed on professions, trades, callings, and employment under this chapter.
India Professional Tax on Profession, Callings, Trades and Employment Act (also known as the Profession Tax Act) is a law that taxes professions, callings, trades, and employments. In India, TN Profession Tax is levied on August and January salaries. TN Corporations and Panchayats also have different slab rates.
Frequently Asked Questions
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How soon must the return be filed under the India Professional Tax Act?
India Professional Tax Act requires returns to be filed at the beginning of every half-year.
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Where can I apply for registration under the India Professional Tax Act?
Chennaicorporation.gov.in is the site for registering under the Tamil Nadu Professional Tax Act www.chennaicorporation.gov.in
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Is there a list of documents required for registration under the Tamil Nadu Profession Tax Act?
A Trade License copy / Registration Certificate for Shops and Establishments, a Lease Agreement, a PAN Card, and a Memorandum of Association & Incorporation Certificate are required for registration under the Tamil Nadu Professional Tax Act.
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