Who Should Register For Professional Tax?


A tax is a monetary charge imposed on the taxpayer, that is, an individual or a business entity by the state government or any authorized body.

The fees thus collected serves the purpose of funding public expenses. Thus one of the taxes which was introduced in India in the year 1949 is the professional tax. Every individual who are earning must make a professional tax registration mandatorily.

Who is eligible to pay professional tax?

The owner of the businesses is responsible of deducting the salaries of his/her employees and depositing the amount collected to the concern government department. Depending on the nature of the business, taxes may be paid on a monthly, semi-annually, or annual basis.

Next, professional tax returns must be filed to the tax department at the end of each financial year. It must be filed within a certain time with the proof of the tax payment in the form of pre-described.

If the tax payment proof isn’t included, the application will be deemed to be incomplete or invalid.

Who are eligible for paying professional tax payment?

Professional Tax is the charge levied by an Indian government for the income earned by an individual either by trade or profession, calling or employment. This is very similar to income tax.

The only difference is that the

Income tax is levied by the central government, while the professional tax is imposed by the state government, and it is considered as state revenue. Not only those in the government agency, but the members of a private company is also pay tax. The tax rate is based on the income slabs of each state. This method ensures taxes are leviedequally.

The maximum professional tax to be charged is Rs 2,500 per annum for any state. However, the professional tax isn’t levied by all states. It is imposed on a few states people only. Those states are:

  • Assam
  • Andhra Pradesh
  • Bihar
  • Chattisgarh
  • Gujarat
  • Karnataka
  • Kerala
  • Maharashtra
  • Madhya pradesh
  • Meghalaya
  • Odisha
  • Sikkim
  • Tamil Nadu
  • Tripura
  • Telangana
  • West Bengal

Professional tax certificate

There are two types of professional tax certificates that a business company in India needs to withhold.

  • PTEC – Payment is made by the business entity, owner or a professional i.e. Private limited, Public limited, Sole proprietorship, Director etc.
  • PTRC – Government or non-governmental employer deducts the tax from the exployee’s wages and deposit the same to the Government. However, a fully functioning business enterprise requires both certifications to perform its functions.
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