Salaried individuals are required to pay professional taxes, which are enforced by state governments. Professional taxes are assessed based on the occupation, trade, or profession of the individual. All states have different tax rates, but the maximum amount that can be assessed as professional tax is 2,500 dollars per year. Let’s find out more about Professional Tax Registration Online.
An Indian professional tax is imposed on all trades and professions. Professional tax registration is the responsibility of every business owner, who also has to pay professional tax deductions and payments. Every employee of a private company operating in India is required to pay it.
The professional tax is required for self-employed professionals. The term “professional” refers to those in specific professions such as accounting, media, etc.
Black money and tax evasion have been curtailed by the government over the last few years. Prosecutors are prosecuting those suspected of evading taxes. “The Income Tax Department has increased the prosecution of tax evaders by a sharp amount,” according to a press release dated 12 January 2018. According to the release, 48 people were convicted for various crimes during the current (financial) year (up to the end of November 2017), compared to 13 convictions for(In the financial year (up to November 2017), 13 convictions were recorded compared to 14 convictions the year before, representing a 269% increase.” Aside from facing prosecution, which could result in imprisonment, income tax assessees may also have to pay hefty penalties under a variety of circumstances. Tax laws contain such provisions.
In some cases, you could face both penalties and jail time due to ignorance, laziness, and wilful actions that lead to tax evasion or income tax-related obligations. The income tax act authorizes the tax department to impose penalties on an assessee who defaults on paying taxes, or who underreports or misreports income in filing a return of income, said Amit Maheshwari, a partner at Ashok. Maheshwary & Associates LLP, a Delhi-based chartered accountancy firm. The penalties can range from Rs100 In addition to the tax payable, you may be charged up to 300% of the tax evaded. Shailesh Kumar, director of direct taxation at Nangia & Co LLP, said, “When a criminal offense is established, the offender may face a jail term ranging from three months to seven years.” Below are some cases where penalties and jail terms may be imposed.
If you fail to pay advance tax on time, or self-assessment tax, an income tax assessor can impose penalties at her discretion, but no more than the tax owed.
An assessee should file her tax return by the due date, usually 31 July of the assessment year, as per section 139(1) of the Income Tax Act, 1961. In accordance with section 139(4), you can file your return within one year of the end of the relevant assessment year. After that, you are prohibited from filing your return. The penalty for failing to file a return within the period described above is Rs5,000 if it is filed after the due date, but on or before 31 December of the assessment year, and Rs10,000 otherwise,
Nevertheless, wilful failure to file a return can result in imprisonment for no less than 6 months and up to 7 years; as well as a fine for more than Rs25 lakh in tax to be evaded. Other cases may result in imprisonment for up to 2 years, with a fine of up to 3 months.
It is the assessee’s responsibility to maintain and furnish documents to authorized persons for inspection on demand if books of account are not produced. Those assessees who do not provide these documents may face imprisonment for up to 2 years and fines in accordance with section 275B if they fail to do so, says Maheshwari.
Expenditures from undisclosed sources must also be disclosed. An assessment officer may impose a penalty of 10% of the taxable income if the income is undisclosed.
How does a professional tax violation affect your business?
All states will be penalized if they fail to register after the professional tax legislation takes effect, regardless of how much the interest or penalty varies depending on each state’s legislation board. If payments are not made on time or the return is not filed by the deadline, penalties will be assessed.
The application preparation process
It can be challenging to prepare the application because the terms and regulations can be difficult to understand. Our tax specialists analyze the firm thoroughly and develop a document for filing the tax application.
Application form completion
Afterwards, our experts will complete and submit the legally signed form to the city or town.
The registration process
As soon as the state government (s) confirms that your application is correct, your professional tax registration is complete.
A glossary of terms related to professional tax registration
The Portuguese language
Taxation for professionals
Certificate of Enrollment for Professional Taxes
Tax Registration Certificate for Professionals
Taxes directly collected
All income, capital gains, and net worth are subject to direct taxes, including gift taxes and death duties.
The double taxation of income
Having more than one state tax the same person twice on the same income is called double taxation. If more than one person is taxed on the same thing, double taxation is a good tax policy.