Everything you need to know about Professional Tax

What is the professional tax?

Professional tax is the tax that the State governments in India levied and collected. It’s a tax that is indirect. Anyone who earns wage incomes or a practitioner, such as an accountant, an accountant, a lawyer, a physician, etc., shall pay this professional fee. Various states have varying collection rates and processes. Every month, professional tax registration is levied in India.

Not all nations, however, enforce this levy. The states that charge professional taxes are Punjab, Uttar Pradesh, Karnataka, Bihar, western Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu and Gujarat. This tax applies to business owners, workers, traders and people who take on various jobs.

The professional tax is paid quarterly. If the company consists of fewer than 20 employees, the company or company has to pay PT tax within fifteen days after the end of the month. On the other hand, if the number of workers reaches 20, the company or company may pay a quarterly professional tax. Again, it must be carried out within 15 days of the end of the previous quarter.

Documents needed for the registration

• Certificate of incorporation
• Address proof
• Records of accounts
• Salary and payslip details
• A number of employees working.

Profession Tax Slabs

Each individual registered for professional tax pays a certain amount every month, depending on the monthly salary. Whereas professional tax is typically payable by the taxpayer itself, it is done by the employers in trade and businesses.

The application for their employees’ registration should go to their tax offices within 30 days of the appointment date. All workers are expected to file within 30 days from the date of appointment.

If the company owner has more than a corporation, registration applications must be filed for each authority separately in each jurisdiction if other laws and regulations are applicable.

Late Payment Penalty

At present, the following is applicable in professional tax registration online in India:

• You must pay tax by the 15th of the next month when you have fewer than 20 workers.
• But you must pay the tax before the 15th of a month after finishing every quarter if you have more than 20 workers.

Thus the dues dates for quarterly professional tax payment are

15th July (for April to June quarter)

15th October (for July to September quarter)

15th January (for October to December quarter)

The late payment penalty for professional tax is 18% per year for the unpaid tax measured daily.