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.
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.
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. In case of other class of Individuals, this tax is liable to be paid by the person himself. FINTOUCH can help obtain professional tax registration in India.
Statutory Requirement
Employers in certain states are required to mandatorily obtain professional tax registration, deduct and pay service tax on behalf of employees.
Avoid Penalty
Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time.
Easy Compliance
Compliance with professional tax regulation is easy. Professional tax registration can be obtained easily and compliance maintained easily
PT
Professional Tax is a Tax which is levied by the State on the Income earned by way of profession, trade, calling or employment. This form of tax was first levied in India in the year 1949 and the power to levy Professional Tax has been given to the States by way of Clause (2) of Article 276 of the Constitution of India
This Tax is levied based on slab rates depending on the Income of the Individual. This Tax is just like Income Tax except for the fact that Income Tax is collected by the Central Govt and Professional Tax is collected by the State Government. When this tax was first introduced in India, the maximum limit on the tax to be collected was Rs. 250. However, this limit was raised from Rs. 250 to Rs. 2500 in the year 1988.
Any amount paid as Professional Tax to the State Govt. is allowed as a deduction under Section 16 of the Income Tax Act and Income Tax on the Balance Amount is levied as per the Income Tax Slab Rates in force
In case of salaried people, the professional tax is liable to be deducted by employer from salary and employer liable to deposit the same to state government. In case of other class of Individuals, this tax is liable to be paid by himself.
CIN - U74999KA2018PTC110598
About Us FAQ Terms and Conditions Privacy Policy Disclaimer Important linksNo 7 2nd floor, Brundavana Arcade 22nd Main Road Near PES college Banashankari 1st Stage Bangalore - 560050