Payroll ProcesProfessional Tax Registration Servicesing
Professional Tax is the tax charged by the state governments in India. Any one earning an income from salary or any one practising a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection. In India, professional tax is imposed at the state level. Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer’s salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.
State in which Professional Tax is applicable:
Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh.
Professional Tax Deduction Slab:
The maximum amount payable per annum towards professional tax is Rs. 2,500. It is deducted from his/her monthly salary by Employer or from Monthly Income in all other cases. Professional Tax deduction monthly slab varies depending on salary /income range and applicable state.
Professional Tax Payment date :
As Professional tax as deducted has to be deposited within the due date. Due date of deposit varies state to state.
Required Documents for PTRC
- Applicant's PAN card.
- Applicant's Aadhaar card.
- Verification of address, such as an electricity bill, telephone bill, or property tax receipt.
- Evidence of business premises ownership or tenancy, like a rent agreement or property documents.
- Bank account particulars, comprising bank name, branch address, account number, and type.
- Applicant's photographs.
- Authorization letter or board resolution for the authorized signatory.
- GSTIN or TIN of the applicant, if applicable.
- Proof of business or professional commencement, such as an incorporation certificate, partnership deed, or registration certificate.
- Employee details and corresponding salary/wage records, if applicable.
