It is a State Government tax imposed on all professions and trades. It is not imposed only on doctors, chartered accountants, lawyers, and other professionals. In addition to being levied and collected by all individuals earning through any legitimate source of income, this tax must also be paid by all individuals engaged in private businesses. It is the responsibility of the proprietor of the business to deduct professional tax from its employees and pay the funds to the appropriate state government’s professional tax department.
Under Section 16 of the Income Tax Act, 1961, any amount paid to the State Government as Profession Tax can be deducted from taxable income.
How Can You Get Your Professional Tax Registration
In 24 working hours, a dedicated youngandperez team will review your uploaded documents and assign a Tax Expert to your order. After reviewing the documents, a Tax Expert will be assigned to you and your order will be processed. Your assigned account will also allow you to check the order’s status.
Utility Of Professional Tax Registration
State governments levie professional taxes as a revenue source keeping in mind the purpose of the Constitution and uplifting its purpose. This amount is generally deducted at Rs. 200/- per month and a maximum of Rs. 2500/- per financial year. It can be used for development purposes by the government.
Who Has To Obtain Professional Tax Registrapt registration onlinetion?
- To obtain a pt registration online, follow these steps:
- Excessive turnover by an employer
- Businesses that engage in trades or professions
- Employers in different states for a business owner
- Providers of freelance services
Procedure Of Obtaining Of Professional Tax Registration
It is mandatory to obtain a Professional Tax Registration within 30 days after hiring staff or, for professionals, after starting a practice. It is the employer’s responsibility to deduct professional tax from the employees’ salary or wages. It is the assessor’s responsibility to apply for a Professional Registration Certificate within 30 days after hiring employees for his business. If there is more than one place of business for the assessee, work, then the application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.
Exemption From Professional Tax Registration
Individuals who are exempt from professional tax include:
- A parent of a child with a permanent disability or mental illness.
- Serving members of the armed forces in the state, including auxiliary forces and reservists.
- Age 65 and older individuals.
- Those who are physically disabled (also those who are visually impaired).
- In the Mahila Pradhan Kshetriya Bachat Yojana, women exclusively work as agents or directors of small savings.
- Individuals who are mentally challenged and their parents or guardians
- The textile industry employs Badli workers
Due Dates Of Professional Tax
In the event that an employer has more than 20 employees, the payment is due within 15 days from the end of the month, whereas in the event that the employer has fewer than 20 employees, the payment is due quarterly (by the 15th of next month from the end of the quarter).
Professional Tax Return
Each state sets its own deadline for filing the Professional Tax Return by all persons with Professional Tax Registration.
Frequently Asked Questions
Do professional taxpayers come in a variety of forms?
There are 2 types of Profession Taxpayers (a) Profession Tax Enrolment Certificate (PTEC): Any person involved in Profession, Trade, and Callings and falling under any of the classes mentioned in Schedule I shall obtain a PTEC. Every employer that has hired even a single employee whose salary exceeds the prescribed limit for deducting Profession Tax must obtain a Profession Tax Registration Certificate (PTRC).
Does a Professional Registration Certificate have a validity period of one year.?
If the certificate is not revoked, the registration number remains permanent.