MEANING – PROFESSIONAL TAX
Unlike the name, Professional Tax is not a tax which is applicable on professionals only, it is tax which is applicable on all kinds of professions, trades, and employment and based on the income.
Applicability:
It is applicable on:
1. Business including freelancers
2. Professionals including CA, CS, Doctors
3. Employees
Professional tax is applicable once the person begins his profession or business within 30 days of starting the profession. In case the company has its presence in different places, then it is required to take registration for each such place.
Exemptions to Certain Persons?
- Foreign employees are exempt from paying profession tax.
- Individuals who run educational institutions that teach classes up to twelfth standard.
- Individuals in the Central Para Military Force (CPMF).
- An individual who has one child and has undergone a sterilization operation. However, the relevant documents must be submitted.
- Any ex-serviceman who comes under SI. No.1 (Schedule)
- Any handicapped individual who has at least a 40% disability. However, the relevant certificate must be submitted.
- Individuals who have a permit for a single three-wheeler or a single taxi to carry goods.
- Deaf, dumb, and blind individuals who are earning a salary.
- Civilian non-combatant and combatant members who are part of the Armed Forces. However, the Army Act must govern the Armed Forces.
- Foreign technicians who have been employed by the state.
- All philanthropic and charitable hospitals that are present in places that come below taluk level.
COMPLIANCE
All person subject to professional tax are subject to following compliances
1. Registration
2. Payment of tax
3. Return filing
a) Monthly
b) Annually
The above mentioned are discussed hereunder:
PROFESSIONAL TAX REGISTRATION
There are two kinds of Professional Tax Registrations:
1. Professional Tax Employer Registration
All business and organisation are required to obtain employer registration regardless of the number of employees working in the organisation. The procedure of registration is based online, after submission of application Professional Tax Enrolment Certificate i.e. PTEC (registration certificate), is issued by the Commercial Tax Department.
2. Professional Tax Employee Registration
Every employer is required to obtain professional tax employee registration on behalf of the employees. Professional tax for the employee is deducted by the employer. The certificate obtained is known as Professional Tax Registration Certificate known as PTRC.
PAYMENT
An employer is required to pay two types of professional tax, one is professional tax for his/her/its business known as PTEC and another is professional tax deducted form the salaries of employees known as PTRC.
These taxes are payable monthly, annually, semi-annually based on the law of the state.
RETURNS
Similar to the payment of tax, an employer is required to file two types of professional tax Return, one is professional tax Return for his/her/its business (PTEC) and another is professional tax Return for employees (PTRC).
These returns are filed monthly, annually, semi-annually based on the law of the state.
PROFESSIONAL TAX SLAB RATES IN DIFFERENT STATES
PROFESSIONAL TAX RATE SLAB IN MAHARASHTRA
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.7,500 for Male Employees | Nil |
Up to Rs.10,000 for Female Employees | Nil |
Rs.7,501 to Rs.10,000 | Rs. 175 |
Rs.10,000 and above | Rs. 200 for 11 months and Rs. 300 for the month of February |
PROFESSIONAL TAX RATE SLAB IN KARNATAKA
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.14,999 | Nil |
More than 15,000 | Rs.200 |
PROFESSIONAL TAX RATE SLAB IN WEST BENGAL
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.10,000 | Nil |
Rs.10,001 to Rs. 15,000 | Rs.110 |
Rs. 15,001 to Rs. 25,000 | Rs.130 |
Rs.25,001 to Rs.40,000 | Rs.150 |
More than Rs.40,000 | Rs.200 |
PROFESSIONAL TAX RATE SLAB IN MADHYA PRADESH
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.18,750 | Nil |
Rs.18,751 to Rs.25,000 | Rs.125 |
Rs.25,001 to Rs.33,333 | Rs. 167 |
Rs. 33,334 and above | Rs.208 for 11 months and Rs. 212 for the last month |
PROFESSIONAL TAX RATE SLAB IN TAMIL NADU
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.3,500 | Nil |
Rs.3,5001 to Rs.5,000 | Rs.22.5 |
Rs.5,001 to Rs.7,500 | Rs.52.5 |
Rs.7,501 to Rs.10,000 | Rs.115 |
Rs.10,001 to Rs.12,500 | Rs.171 |
Above Rs.12,500 | Rs.208 |
PROFESSIONAL TAX RATE SLAB IN ANDHRA PRADESH
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.15,000 | Nil |
Rs.15,001 to Rs.20,000 | Rs.150 |
Above Rs.20,000 | Rs.200 |
PROFESSIONAL TAX RATE SLAB IN GUJARAT
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.5,999 | Nil |
Rs.6,000 to Rs.8,999 | Rs.80 |
Rs.9,000 to Rs.11,999 | Rs.150 |
Rs.12,000 and above | Rs. 200 |
PROFESSIONAL TAX RATE SLAB IN ODISHA
Monthly salary (in Rs.) | Profession Tax (in Rs. Per month) |
Up to Rs.13,304 | Nil |
Rs.13,305 to Rs.25,000 | Rs.125 |
Rs.25,001 and above | Rs.200 for 12 months and Rs.300 for the last month |
DOCUMENTS REQUIRED FOR PROFESSIONAL TAX REGISTRATION
- Incorporation Registration / Certificate
- Business PAN Card
- MOA & AOA of Company or LLP Agreement or Partnership Agreement etc.
- PAN of Directors/Proprietor/Partners
- Address Proof of Directors/Proprietor/Partners
- List of Directors/Proprietor/Partners
- Authorisation Letter
- Cancelled Cheque
All these documents are required to be self-attested.
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