Professional tax registration online

A Professional tax registration online levied by the State Government is compulsory for every business within one month of business registration or incorporation of the company.

To avail our services, we charge 499/- as an advance or security payment.

Professional Tax Registration

PROCESS OF Professional Tax Registration

Step 1

legaltoast will thoroughly go through the files you send us. 

Step 2

Our team will appoint an affiliate who will be processing your application.

Step 3

Within 15 days from your application, your TIN will be issued.

PROFESSIONAL Tax REGISTRATION

A tax that the government imposes on all salaried individuals is known as Professional tax. To all professionals like chartered accountants, lawyers, and doctors are mandated to pay professional tax. It is practiced based on the individual’s profession, trade, or employment. In every State, the tax rates are different, but the maximum amount that is imposed on professional tax is 2,500 per annum.

professional tax registration online

PROFESSIONAL Tax ELIGIBILITY

Professional tax is imposed on all types of trades and professions in India. In India, every individual working in the private sector is mandatory to pay this tax. It’s every business owner’s responsibility to get Professional tax registration online done offline, who should later conduct all the deduction of professional tax and payment. 

 Each State’s Exception In Professional Tax 

In each State, the rate of professional tax can be different from the other. The state governments that are collecting state tax are West Bengal, Maharashtra, Gujarat, Karnataka, Kerala, Tripura, Madhya Pradesh, Orissa, Meghalaya, and Assam.

 Professional Tax For Self-Employed

Professional tax is needed to be paid by any professional earning a regular income every month. The people working in specialized areas like accountancy, law, media, etc., fall under the word professional.

Specialists giving freelance services are also obliged to pay professional tax registration online using a specific form. They need to fill the form online and get a registration number, and with that number, they have to pay their taxes in the corresponding banks.

Several states in India like Maharashtra, Profession Tax Act altered from 1.4.2018, Now a Limited Liability Partnership and each partner of LLP is responsible for paying PT of Rs. 2,500/- per annum.

 Exemption In Professional Tax. 

The following individuals are released from pa professional tax:

    • Guardians/Parents of children with a permanent disability or mental disability.
    • Members of the armed forces, members of auxiliary forces or reservists, and people are serving in the State.
    • Individuals above 65 years of age.
    • A physically challenged individual (including visually challenged).
    • Ladies exclusively employed as an agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
    • Badli workers in the textile industry.

ADVANTAGES OF PAYING PROFESSIONAL TaxES

Reasons why you should always pay professional tax. 

 Judicial Essentials 

In India, according to the law, every employee is obliged to make a professional tax payment without fail. In many states of India, employers are strictly tied by the judiciary to obtain the registration of professional tax. Once the registration is done, they have to make the deductions and pay the service taxes of all the employees who work under them.

 Avoid Penalties

Not getting professional tax registration done can result in big penalties that keep on adding over time.

 Easy To Comply

When something is simple to obey, it would not be difficult to follow. The rules and regulations of professional tax are pretty easy and simple to comply with. The registration process and also the after proceedings are convenient and way simple than other taxes.  

 Deductions

You can claim the deductions in the salary based on the professional tax paid. The deductions will be deducted in the year corresponding to which the taxpayer made the payments.

The State Government Tax

 All the right to collect professional taxes is reserved by the local authorities and the state government based on employment, professional trades, and much more. The amount collected on professional tax should not exceed the limit of Rs. 2500 per annum.

PROFESSIONAL Tax REGISTRATION ONLINE PROCESS IN INDIA

The professional tax registration online procedure is effortless. Here are three essential points that one needs to know and understand in detail.

Varies According To State

If you are a company owner who has employees working for him in various states working, in that case, you have to get professional tax registration for all the states you have employees working for you. The tax deduction rates will be different in each State. This can make it exceptionally troublesome for small-scale enterprises. In North India, many states don’t have professional taxes.

The Frequency Of Filing Returns

The rate under which one needs to file returns will depend on the State the person resides in. Therefore, it is necessary to study the State’s rules before filing for a return it is essential to know the State’s laws for professional tax registration online.

The Penalties That Await

Professional tax registration online refers to all types of business entities. Professional tax can be calculated based on self-assessment. It mainly depends on the gross income of the professional or employee in the half-yearly stage.

If a person who owns a trade or employs staff in his company or is a working professional, then he will have to register at the tax authority of the State’s professional tax department. It’s the employer’s responsibility to deduct the professional tax from their employee’s salary. The decreased amount shall be paid to the government when the employer registers their professional tax return. Whatever category of professional you belong to, be it self-employed or have an employee working under you, legaltoast can help you with Professional tax registration online. We’ve Chartered Accountants and taxation professionals who will offer you the proper guidance and file the returns on your behalf.

For example, the Maharashtra government charged a penalty of about 10% of the amount, which was delayed. Hence, the longer one avoids paying the registration, the higher they will worry about the penalties.

REQUIRED DOCUMENTS FOR PROFESSIONAL Tax REGISTRATION ONLINE

The following list of required documents for professional tax registration online:

    • Certificate of Incorporation, including Memorandum of Association & Articles of Association / LLP Agreement.
    • PAN card of Company/LLP that the company director attests
    • The company address proof along with a NOC from the owner of the premises
    • The bank account of the business also the bank statement and a canceled cheque.
    • Copy of all the directors’ identity and address, along with proof Passport size photographs.
    • Copy of the declaration of consent by the partners mostly knows as board resolution.
    • Copy of shop and establishment certificate.
    • Attendance and Salary register. 

STUDY BETWEEN ENROLLMENT AND REGISTRATION

All the Traders and self-employed professionals need to apply for a Professional Tax Registration Certificate (PTRC) and Professional Tax Enrollment Certificate (PTEC) in their respective states.
Registration Certificate is needed by entities who hire individuals and pay them wages/salary. Traders need an Enrollment certificate (PTEC) and self-employed to pay the company’s and director’s professional tax.
Therefore, professional tax registration is required for people who are employed. On the other hand, enrollment is required for those who own trade, business, or a profession.

UNDERSTANDING THE PROFESSIONAL Tax RETURN.

All the registered employers need to file Professional tax annually. Concerning the professional tax paid in the financial year, the return should be filed. While filing returns, the wages/ salary of the employees should be taken into accounts. The filing professional tax return online always be filed during the financial year-end, granting the employer an opportunity to rectify any imperfections or errors made on the due date of submission. Entities and registered people need not file any returns.

UNDERSTANDING THE PROFESSIONAL Tax REGISTRATION

Firms/ Company/LLP

In the case of professional tax, LLP/firms/societies/HUF/ corporations/ associations/clubs/companies will be recognized as a taxable entity. All the departments involved in these will also be considered as a separate unite in front of the tax payment/ department of professional tax.

 Individual People (Professionals)

Legal professionals like notaries, solicitors, medical representatives, doctors, or other professionals like management consultants, tax consultants, tax consultants, chartered accountants, company secretaries, insurance agents, architects, engineers, and contractors are all considered professional individuals need to pay professional tax.

Partners And Directors

People who come under company directors, business partners, LLP partners, designated partners are allowed to pay professional tax. According to the Professional tax act, they have to register in 30 days for getting appointed in these roles.

FAQS ON Professional tax registration online

Every Indian State appoints its slab for professional tax. For instance: In Maharashtra, if your regular income is between Rs.7,500 to Rs.10,000, then the professional tax levied is Rs.175. Likewise, for monthly payments above Rs.10,001, the tax is Rs.200 for 11 months and Rs.300 for the 12th month. Finally, If the monthly salary is below Rs.7500, there is no professional tax charged.

Each person who is responsible for paying professional tax must file its returns by December 31st.

In particular, any company needs to deduct taxes from the employees if their salary amount exceeds the minimum slab limit and deposit it to the government. That filing professional tax return online is needed to get a certificate of registration.

Before filing professional tax return online, you can check their your State's official website to pay the professional tax fee online. Go to the "Professional tax e-payment" page there, and you will find every detail step-by-step and also how to pay the fee.

Once you make the payment, you need to download the payment acknowledgment receipt to confirm whether your payment is made or not. The receipt shows that the payment has been completed successfully.

A direct tax that the central government collects from all taxpayers is known as income tax. Income tax is charged on some portion of their income. At the same time, professional tax is an indirect tax collected by the state government. It is usually charged based on a slab for people engaged in business, occupation, or employment.

By the official website of your State, you can directly apply for your professional tax registration certificate. But it is still advised that you get professional help for the first time. Contact legaltoast to get the certification in no time.

Every individual who registers for a professional tax certificate will be receiving an official PTEC number. You can check this number on the official state website under the "Know your TIN" option. The PTEC number is shown when the PAN number is provided.

Like the tax required, the amount of the penalty is also different from one country to another. For example, the minimum fine in Karnataka is 1.25%, while in West Bengal, it is 1%.

PTEC stands for Professional Tax Enrollment Certificate, and PTRC stands for Professional Tax Registration Certificate.

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