Professional Tax Registration
Professional Tax is a tax collected by State Governments from the professionally occupied business entities. Apply for your Professional Tax Registration with EOB for a hassle free experience.
Fee: Rs. 5950 (All Incl).
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Professional Tax Registration
A person earning income from salary or professions such as Chartered Accountants, Company Secretaries, Lawyers, etc. is required to pay professional tax. This tax is deducted from the salary of the employer, which is later eligible for deduction from the computation of taxable income. The registration is obtained by the employers and business owners with the respect Municipal Corporation. Being it State based on registration, the rate of tax and method of registration is different. Further, there are two types of registrations being – PTEC and PTRC registrations. PTEC stands for Professional Tax Enrollment Certificate and PTRC stands for Professional Tax Registration Certificate.
A professional tax registration certificate (PTRC) is to be obtained by the company in the role of Employer. The company will have to deduct Professional Tax on Salaries paid by it to its employee where the salary paid to such employee exceeds Rs.7,500/- per month.
Professional Tax in India is levied on income earned by any trade and is remitted by the employer. A person has to pay a tax of around Rs. 2500 every year to the state or any local authority by way of Tax on the profession, trades, callings, and employments.
ONLINE REGISTRATION
Documents required for Professional Tax Registration
FREQUENTLY ASKED QUESTIONS
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How is Professional Tax Calculated?
In India, Professional Tax is calculated on Salary slabs. Under minimum salary, there is no tax. The maximum amount paid as Professional Tax is Rs.2500 per year. The tax slabs differ from state to state.
Is it mandatory to pay Professional Tax?
Professional Tax is a mandatory tax paid by every individual, and there are penalties in case of non-compliance.
Is the Professional tax Different for Different states?
The Professional Tax Rules vary from state to state. As the rules vary from state to state, each state can set limits and rates. But the maximum amount limit has been developed to Rs.2500 per year. The salary slab structures for levying Professional Tax differ from state to state.
Which are the states where Professional Tax is applicable?
Currently Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh have this tax applicable. This list is as on 16-05-2021. Any changes in the same will be updated from time to time.
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