Professional Tax Registration

The state government levies the professional tax on income from profession or employment. Individual earning an income from salary or anyone carrying out a profession such as a lawyer, doctor, charted accountant, etc. are required to pay this professional tax.

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Different states in India have different rates and methods to collect Professional Tax.

This form of tax was first levied in India in the year 1949 and the power to levy Professional Tax has been given to the States by way of Clause (2) of Article 276 of the Constitution of India.

Types

Professional Tax Registration Certificate (PTRC): Government or Non- Government employer deducts the tax from the employee’s wages and deposit the same to the government.

Professional Tax Enrollment Certificate (PTEC): This is paid by the business entity, owner or a professional i.e., Private/ Public Limited Company, Sole Proprietor, Director etc.

Exemptions for Payment

Exemptions for Payment of Professional Tax:
There are exemptions provided for certain individuals to pay Professional Tax under the Professional Tax Rules. The following individuals are exempted to pay Professional Tax:

Parents of children with permanent disability or mental disability
Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950, and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the State.
Badli workers in the textile industry
An individual suffering from a permanent physical disability (including blindness)
Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
Parents or guardians of individuals suffering from a mental disability.
Individuals, above 65 years of age

Apart from the above specific exemption, certain salary exemption limits, turnover limits for organizations are provided by the respective state governments.

Documents

PAN Card (Self Attested)
Proof of the constitution of business
Address proof of the place of business such as Rent agreement (NOC)/ sale deed
Identity proof and address proof of all directors/partners along with the passport size photo.
PAN card of all the directors/partners
In case of a company-Board Resolution and in case of Partnership- the Declaration of consent by the concerned Partner is required.
Latest bank statement

Registration Process

File the online application
Submit the requisite documents along with the application to respective state authority
Issuance of Registration certificate

Penalties in relation to PT non-compliances:

Delays in obtaining Registration Certificate, a penalty of Rs. 5/- per day.
In case of non/late payment of profession tax, penalty will be 10% of the amount of tax with interest @ 1.25% p.m.
In case of late filing of returns, a penalty of Rs. 1,000 per return will be imposed

Professional Tax Registration

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Types

Registration Process

Registration Process

Penalties in relation to PT non-compliances:

Setting up business

ROC Compliance

Direct tax compliance

Indirect tax compliance