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Professional Tax Registration

Unlike stated by the term, professional tax is not a tax levied merely on professionals. This tax is levied on any individual who earns a livelihood through profession, employment, trade or calling. As per provisions mentioned in Clause (2), Article 276 of the Indian Constitution, the right to levy and collect professional tax is bestowed on the State Governments.

About Professional Tax Registration

Unlike stated by the term, professional tax is not a tax levied merely on professionals. This tax is levied on any individual who earns a livelihood through profession, employment, trade or calling. As per provisions mentioned in Clause (2), Article 276 of the Indian Constitution, the right to levy and collect professional tax is bestowed on the State Governments.
Many Indian states have opted not to exercise this right as well. In all the other States where it is applicable, this tax is charged based on professional tax slab rates as enacted by the respective States. However, no state can levy professional tax beyond ₹ 2,500 on any taxpayer.
Professional tax payment is allowed as a deduction from taxable income as per the Income-tax Act, 1961.

Professional Tax Registration

Important Points
  • Professional tax is just like Income Tax
  • Income Tax is collected by the Central Government and Professional Tax is collected by the State Government.
  • When this tax was first Announced in India, the maximum limit on the tax was Rs. 2500 (i.e: collected tax is maximum charged by professionals is 2500).
  • This limit is fixed in 1949
  • There is some revisions on the limit by the state government for raising additional resource

Penalties for Non-Compliance on Professional Tax Payment:

  • Delays in obtaining Registration Certificate, a penalty of Rs. 5/- per day.
  • In case of non/late payment of profession tax, penalty will be 10% of the amount of tax.
  • In case of late filing of returns, a penalty of Rs. 300 per return will be imposed.

Professional Tax Registration Forms:

  • There is two type of forms for professional tax registration
  • Form I- For employer
  • Form-II- For self-employed person

Documents Required

  • Start By Filling A form
  • Fill the form to start registration procedure. Fill all the details that are required.

Submit The Required Documents

Send all the documents that are required, via mail or personally

Documents Submission

After documents submission officer works on procedure

Complete Registration

As the procedure complete government send you the documents