Professional Tax Registration & Return Filing

Professional Tax (PT)

Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and has to be compulsorily paid by every member of staff employed in private companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department. Application for the Registration Certificate should be made to the assesse's state tax department within 30 days of employing staff for his business.

Professional Tax Applicable States Across India

Professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month. Some of the state governments that have levied professional tax are Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. In case of salaried employees and wage earners, Employer is liable to deduct professional tax with the State Government.

Exemptions

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 agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.

♦ Parents or guardians of individuals suffering from mental disability.

♦ Individuals, above 65 years of age.

Documents Required for Professional Tax Registration

♦ COI, Memorandum of Association (MOA) & Article of Association (AOA) for Company or partnership deed for partnership firm

♦ DIR – 12 (If any) in case of Pvt Ltd

♦ Light Bill / Rent Agreement: Light Bill in case of owned business premises, for any other case Rent Agreement is required

♦ PAN of Company / Firm

♦ PAN, Aadhar, Photo all of Directors

♦ Authorization Letter by signatories

♦ Board Resolution

♦ Signature on Blank Paper for record and verification

♦ Canceled cheque / Bank Statements

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