Professional Tax Registration
Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.
Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government.
Professional Tax Registration is done through Incfile.in .
Who Pays Profession Tax?
Self-employed persons who carry out their profession or trade on their own and fall in the ambit of profession tax are liable to pay the tax themselves to the state government. The Commercial Taxes Department of a state/union territory is the nodal agency which collects profession tax on the basis of predetermined tax slabs which vary for each state and union territory. The tax is calculated on the annual taxable income of the individual, however, it can be paid either annually or monthly. Self-employed taxpayers need to obtain a Certificate of Enrolment from prescribed authority (of the concerned state) in the prescribed manner.
However, in case of salaried individuals and wage earners, the employer is liable to deduct profession tax from the employee’s salary on a monthly basis (as per the applicable professional tax slab) and deposit the same with the state government. The employer needs to get a Certificate of Registration from the concerned authority to be able to deposit the deducted profession tax.
Maximum Profession Tax Amount
A maximum of Rs. 2,500 can be levied as professional tax on any person per financial year.
Profession Tax Is Deductible Under Section 16 (iii) Of The Income Tax Act
According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.
What is included in our Package.
- Tax Consultation
- Government fees
Profession Tax Applicability
Profession tax is applicable on the following classes of persons:
- An Individual
- A Hindu Undivided Family (HUF)
- A Company/Firm/Co-operative Society/Association of persons or a body of individuals, whether incorporated or not
Procedure for Professional Tax Registration
Complete our Simple Form
You are required to fill your details in our simple questionnaire.
Send the scanned copy of necessary documents to us via email.
We will create your documents and file them with concerned government office.
Your work is completed
Government office will process the application and provide the acknowledgement.
Frequently Asked Questions
The entire procedure is 100% online and you don’t have to be present at our office or any other office for professional tax registration. A scanned copy of documents has to be sent via mail.
There is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.
Incfile.in can register professional tax in less than 4 days.
Profession Tax Rates in Key States of India
|State||Income per Month||Tax Rate/Tax Amount (p.m.)|
|Andhra Pradesh||Less than Rs. 15,000||Nil|
|Rs. 15,000 to less than Rs. 20,000||Rs. 150|
|Rs. 20,000 and above||Rs. 200|
|Gujarat||Up to Rs. 5999||Nil|
|Rs. 6000 to Rs. 8999||Rs. 80|
|Rs. 9000 to Rs. 11999||Rs. 150|
|Rs 12000 and above||Rs. 200|
|Karnataka||Up to Rs. 15,000||Nil|
|Rs. 15,001 onwards||Rs. 200|
|Kerala (Half yearly income slabs and half yearly tax payment)||Up to Rs.11,999||Nil|
|Rs.12,000 to Rs.17,999||Rs.120|
|Rs.18,000 to Rs. 29,999||Rs.180|
|Rs.30,000 to Rs. 44,999||Rs.300|
|Rs.45,000 to Rs. 59,999||Rs.450|
|Rs.60,000 to Rs. 74,999||Rs.600|
|Rs.75,000 to Rs. 99,999||Rs.750|
|Rs.1,00,000 to Rs. 1,24,999||Rs.1000|
|Maharashtra||Up to Rs. 7,500||Nil (for male)|
|Up to Rs. 10,000||Nil (for female)|
|From Rs. 7,500 to Rs. 10,000||Rs. 175 (for male)|
|Rs. 10,000 onwards||Rs. 200 for 11 months + Rs. 300 for 12th month|
|Telangana||Up to Rs. 15,000||Nil|
|Rs.15,001 to Rs.20,000||Rs. 150|
|Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.)||Nil|
|Over 5 years (For professionals such as legal practitioners, CA, architects, etc.)||Rs. 2,500 (per annum)|
|West Bengal||Up to 10,000||Nil|
|10,001 to 15,000||Rs. 110|
|15,001 to 25,000||Rs. 130|
|25,001 to 40,000||Rs. 150|
|40,001 and above||Rs. 200|