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Professional Tax Registration
Professional Tax Registration is one of the required licenses issued by the State Government for commercial organizations. Register your business with Professional Tax immediately and receive… Certificate of Enrollment for Professional Tax.
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Professional Tax Registration
Article 276 of the Indian Constitution states
Article 276 of the Indian Constitution states, “A tax must be levied and collected on professions, trades, callings, and occupations.”
What is Professional Tax:
Profession tax is a tax imposed on Professions, Trades, Callings, and Employments. The GST Department is the organization responsible for collecting Profession Tax from State businesses. Every professional, trader, calling, and employment, with the exception of agriculturalists, persons performing religious duties, skilled persons (Gold Smith, Black Smith, Pot Maker, Basket Maker, Washerman, Barber, Cobbler, Tailors, Carpenters, Masons, Plumbers, Book Binder, Toddy Tappers, and Electricians), physically handicapped persons with a 40% or greater disability of any kind, and dry cleaners, must apply for registration under the Professional Tax Act.
Various states have different tax rates and collection techniques. In India, a monthly professional tax is enforced. Not all states, however, impose this fee. The states that professional levy tax is Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Pandicherry, Punjab, Sikkim, Tamil Nadu, Telangana, Tripura, West Bengal. It is a direct tax imposed by state governments. Employees and employers are required to pay this tax. Employees must pay this tax annually, while commercial companies must deduct it from their employees’ salaries (i.e., on or before 30th June).
This tax is levied and collected by the GST Department of State Governments, in some states by specific Municipal Corporations, and by the vast majority of Indian states. It is an income stream for the government. The maximum amount payable each year is INR 2,500, and there are predetermined slabs based on the income of the taxpayer. It is also owned by employees of private businesses. It is withdrawn from the employee’s paycheck each month by the employer and remitted to the state exchequer and, in some states, the Municipal Corporation. It is obligatory for professionals to pay tax. This payment is eligible for a tax deduction for the taxpayer.
Who must register for Professional Tax:
An employer, such as corporations, partnerships, sole proprietorships, etc., who are also engaged in a trade or profession, must register for Professional Tax. Each state has its unique tax law for professionals.
An employer (partnerships, corporations, sole proprietorships, etc.) who are also engaged in a trade or profession is liable to pay professional tax on his trade or profession, subject to the monetary threshold, if any, established by state law.
Who is subject to Professional Tax:
Employers are responsible for deducting and remitting professional tax to the State Government on behalf of their employees, subject to any monetary threshold stipulated by state law. Employers (corporations, partnerships, sole proprietorships, etc.) who are also engaged in a trade or profession are obligated to pay professional tax on their trade or profession, subject to a monetary threshold, if any, established by the relevant state’s legislation. In such circumstance, the employer must register and get both a professional tax enrollment certificate and a professional tax registration certificatein order to be allowed to pay professional tax on his trade or profession.
Professional Tax Rates in India:
Each state has different tax rates. Below are the tax rates for each state in India.
Professional Tax rates in Andhra & Telangana:
Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.15000 | Nil |
| Rs.15001 to Rs.20000 | Rs.150 per month |
| Rs.20000 above | Rs.200 per month |
Professional Tax rates in Assam:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.25000 | Nil |
| Rs.25001 to Rs.41666 | Rs.83 per month |
| Rs.41667 to Rs.83333 | Rs.166.67 per month |
| Rs.83333 above | Rs.208.33 per month |
Professional Tax rates in Delhi:
Nil
Professional Tax rates in Delhi:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.15000 | Nil |
| Rs.15001 to Rs.25000 | Rs.150 per month |
| Rs.25000 above | Rs.200 per month |
Professional Tax rates in Gujarat:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Less than Rs.6000 | Nil |
| Rs.6000 to Rs.8999 | Rs.80 per month |
| Rs.9000 to Rs.11999 | Rs.150 per month |
| Rs.12000 and above | Rs.200 per month |
Professional Tax rates in Jharkhand:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.25000 | Nil |
| Rs.25000 to Rs.41666 | Rs.100 per month |
| Rs.41667 to Rs.66666 | Rs.150 per month |
| Rs.66666 to Rs.83333 | Rs.175 per month |
| Rs.83333 above | Rs.208 per month |
Professional Tax rates in Kerala:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.11999 | Nil |
| Rs.12000 to Rs.17999 | Rs.120 per half year |
| Rs.18000 to Rs.29999 | Rs.180 per half year |
| Rs.30000 to Rs.44999 | Rs.300 per half year |
| Rs.45000 to Rs.59999 | Rs.450 per half year |
| Rs.60000 to Rs.74999 | Rs.600 per half year |
| Rs.75000 to Rs.99999 | Rs.750 per half year |
| Rs.100000 to Rs.124999 | Rs.1000 per half year |
| Rs.125000 and above | Rs.1250 per half year |
Professional Tax rates in Madhya Pradesh:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Less than Rs.18750 | Nil |
| Rs.18750 to Rs.25000 | Rs.125 per month |
| Rs.25000 to Rs.33333 | Rs.167 per month |
| Rs.33333 and above | Rs.212 per month |
Professional Tax rates in Maharashtra:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Less than Rs.7500 | Nil |
| Rs.7501 to Rs.10000 | Rs.175 per month |
| Rs.10000 above | Rs.300 for Feb month and rest is Rs.200 |
| Woman salary upto Rs.10000 | Nil |
Professional Tax rates in Manipur:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Upto Rs.4250 | Nil |
| Rs.4251 to Rs.6250 | Rs.100 per month |
| Rs.6251 to Rs.8333 | Rs.167 per month |
| Rs.8334 to Rs.10416 | Rs.200 per month |
| Rs.10417 & above | Rs.212 per month |
Professional Tax rates in Meghalaya:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Upto Rs.4166 | Nil |
| Rs.4167 to Rs.6250 | Rs.16.50 |
| Rs.6251 to Rs.8333 | Rs.25 per month |
| Rs.8334 to Rs.12500 | Rs.41.50 per month |
| Rs.12501 to Rs.16666 | Rs.62.50 per month |
| Rs.16667 to Rs.20833 | Rs.83.33 per month |
| Rs.20834 to Rs.25000 | Rs.104.16 per month |
| Rs.25001 to Rs.29166 | Rs.125 per month |
| Rs.29167 to Rs.33333 | Rs.150 per month |
| Rs.33334 to Rs.37500 | Rs.175 per month |
| Rs.37501 to Rs.41666 | Rs.200 per month |
| Rs.41667 above | Rs.208 per month |
Professional Tax rates in Odisha:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.13304 | Nil |
| Rs.13305 to Rs.25000 | Rs.125 per month |
| Rs.25000 above | Rs.300 for Feb month and for rest Rs.200 |
Professional Tax rates in Puducherry:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Half yearly salary up to Rs.99999 | Nil |
| Half yearly salary from Rs.100000 to Rs.200000 | Rs.250 per half year |
| Half yearly salary from Rs.200001 to Rs.300000 | Rs.500 per half year |
| Half yearly salary from Rs.300001 to Rs.400000 | Rs.750 per half year |
| Half yearly salary from Rs.400001 to Rs.500000 | Rs.1000 per half year |
| Half yearly salary from Rs.500000 above | Rs.1250 per half year |
Professional Tax rates in Sikkim:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.20000 | Nil |
| Rs.20001 to Rs.30000 | Rs.125 per month |
| Rs.30001 to Rs.40000 | Rs.150 per month |
| Rs.40000 above | Rs.200 per month |
Professional Tax rates in Tamil Nadu:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.21000 | Nil |
| Rs.21001 to Rs.30000 | Rs.135 per half year |
| Rs.30001 to Rs.45000 | Rs.315 per half year |
| Rs.45001 to Rs.60000 | Rs.690 per half year |
| Rs.60001 to Rs.75000 | Rs.1025 per half year |
| Rs.75000 above | Rs.1250 per half year |
Professional Tax rates in Tripura:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.7500 | Nil |
| Rs.7500 to Rs.15000 | Rs.150 per month |
| Rs.15000 above | Rs.208 per month |
Professional Tax rates in West Bengal:
| Monthly Salary | Professional Tax Amount |
|---|---|
| Up to Rs.10000 | Nil |
| Rs.10001 to Rs.15000 | Rs.110 per month |
| Rs.15001 to Rs.25000 | Rs.130 per month |
| Rs.25001 to Rs.40000 | Rs.150 per month |
| Rs.40000 above | Rs.200 per month |
Registering under the Professional Tax Act
Employers, such as corporations, partnerships, sole proprietorships, etc., who also engage in trade or profession are needed to register for Professional Tax. Each state has its unique tax law for professionals. Listed below are the Required Documents and Registration Process Step-by-Step.
Documents Required
How to Register for a Professional Tax
Below is the 3 step Company Registration process.
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Let's Deal With Your Confusions
Professional tax refers to a tax imposed in accordance with Professions, Trades, Callings, and Employments. The GST Department is the body responsible for collecting Profession Tax from State professionals.
Basically, there are two sorts of professional taxes.
1. Enrollment (Form V Payments) monthly salary deduction
2. Registration: Profession, trade, or calling fees are dependent on registered dealers' yearly gross sales.
Individuals and businesses can get professional tax registration by filing Form I of tax on Professions, Trades, Callings, and Employments and providing the required information. a) Proof of address; b) Bank account with branch name; c) business registration certificate; d) email identification; e) GST Number; etc.
Not necessary
For establishments, the tax must be paid annually, but for employees, it must be paid monthly.
Employers and employees are required to pay this tax. Each state has a separate rate structure.
Approximately 3 to 4 working days.
The distinct state has different slabs. For instance, the Telangana government levies Rs. 2500/- for a company, Rs. 2500/- for each director, Rs. 150/- for employees with a gross pay between Rs. 15,001 and Rs. 20,000, and Rs. 200/- for employees with a gross salary over Rs. 20,000.
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