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Professional tax is imposed by the state government via article 276 of the Constitution of India and varies from state to state; every state derives this right to impose pay professional tax on the professionals like doctors, CA, CS lawyers and others. However, the maximum ceiling to this is Rs 2500/- annually. The professional tax is levied by the Municipal Corporation of the respective city.
One needs to pay attention to the fact that in the case of other class of individuals, the professional tax is liable to be paid by the employee himself/herself. The professional tax is imposed basis a slab-amount on the gross income of the professionals required to pay professional tax.
In case of the company, LLP, designated partners or partners of LLP, partnership firm, individual partner, self-employed professional or owners of any business the professional tax is charged on the basis of the gross turnover in the preceding year.
Usually, the professional tax is charged by the government on the income from salary or practicing such professions say like doctors, CA, CS lawyers and others. The person obligated to seek such professional tax registration is required to ensure that the professional tax is deducted from the salary of the employees.
One needs to take the registration under a professional tax of a particular state within 30 days of coming under the purview of the applicability of professional tax.
The professional tax collected from the employees should be deposited in the appropriate office designated by the state government and a return of professional tax must be filed specifying the payment of pay professional tax.
Also, Read: Know whether you are required to Pay Professional Tax or Not!.
The imposition of the professional tax rate is different from state to state, however with a cap of Rs 2500/- in a year. Apart from professional tax rate, the coverage also differs from the state to state, for example, the pay Professional Tax in Maharashtra is applicable in both the case of salaried and self-employed professionals to earn while working in government or private organization or under any other mode of employment. However, in Delhi Professional tax is not applicable.
One needs to apply online and the scanned copy of documents has to be sent via mail.
It is usually a maximum of 4 days.
Following are the states wherein the PROFESSIONAL TAX is applicable:
The Procedure to obtain the pay Professional tax certificate is completely online the expert team of Enterslice is engaged in providing end to end solution with regard to registration to after registration compliances including returns. In case you need any expert opinion or learn more Clicks here to contact.
See our Recommendation: All Types of Income Tax Return Filing In India.