Register Professional Tax in India

Register Professional Tax

Professional Tax is a tax charged by the State Government. The amount differs from state to state. As the name suggests this tax is levied on anyone earning the salary by employments, trades, callings or practicing a profession like Lawyer, Doctor or Chartered Accountant. This tax is levied on basis of the income of an individual. Some states do not follow the concept of Professional tax. States like Maharashtra, Karnataka, West Bengal, Madhya Pradesh, Tamil Nadu and Gujarat levies this tax. However, states like New Delhi and Rajasthan have no such tax (yet!). As per the Government of India, the maximum amount of this tax can be Rupees two thousand and five hundred per annum only. However, there have been many requests from states itself, so as to raise this amount to Rupees seven thousand and five hundred.  Register Professional Tax in India with the help of experts.

The employer deducts the Professional tax from the salary of their employees and pays the amount to their respective State Governments. In order to submit the collected amount to the Government, employers first have to register. A Professional Tax registration application is drafted by the employer. This application is submitted to the State's Tax department within thirty days of employing a person. Since the tax differs from state to state, the employer needs to ensure that registration is made accordingly. In the case of more than one workplace in different States, different registrations will be required. You will require following documents for the registration:

A copy of PAN Card of your company.

Registration Certificate.

A copy of Memorandum Of Association and Article Of Association.

List of Directors/Partners.

Identity and Address Proof of Directors/Partners.

A copy of Resolution of Board of Directors.

List of employees.

Address proof/Rental agreement of registered office/factory/warehouse.

Electricity/Maintenance Bill of registered office/factory/warehouse.

Canceled cheque from Company's bank account.

All these documents along with Professional Tax registration application and fees are submitted to the State's Tax department. Upon verification, a registration certificate is issued. Hence, your Professional Tax Registration is successfully completed.

The Tax is mandatory for all the earning individuals both from the government as well as non-government sector. Employers are the one who is responsible for the collection and submission of this tax. They are mentioned at the time of filing of annual returns. Ignorance of the tax can lead to a penalty. For the specific state, you can visit the online site of their tax department for the registration also. We, at LegalRaasta, can help you register your Professional tax and make the process quick and easy for you.

For more information please visit legalraasta.