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Professional Tax Registration Online in India
Professional tax registration is required for employers and persons engaged in any profession or trade. That entity is required to obtain a registration certificate. The Professional Tax is a source of revenue for the state. Registering a tax, enrolment is now Simple, Affordable & Accessible through National Filing. Professional tax registration in India is a tax which is regulated and imposed by the State government on all salaried people, though, states such as Delhi, UP and Haryana are exempted from this tax. This tax is applicable to all types of working professionals such as chartered accountants, doctors and lawyers. It is imposed depending on the individual’s employment, business or profession. In fact, business owners, freelancers, and so on are also liable to pay this p tax registration once their financial gain increases the pecuniary threshold. The tax rates are not the same in all states, and the maximum amount of tax can be imposed as Professional income tax is Rs.2,500 per year.
Who Pays Professional Tax in India?
Self-employed individuals who are working on any kind of profession, business and trade will come under the category of pt registration and are legally responsible for paying professional tax to the state government. This tax is collected by the Commercial Taxes Department and the tax slabs differ for each state. The tax is calculated from the annual taxable income of the professionals and it can be paid annually and also as monthly tax. It is mandatory for a self- employed individual to get the certificate of Enrolment from the authorized authority in the specified format.
If a salaried individual or wage earner’s, pay Professional tax is deducted from the salary of the employees every month. An employer cannot make a deposition of the deducted amount without getting the registration certificate from the respective authority.
Benefits of Professional Tax Registration Online in India
Following are the reasonable factors why should one never miss professional tax:
- Paying a professional tax registration online in India is a judicial requirement and if any individual avoiding it can be reliable for the penalty or legal issues and self-employed individual and employer should also pay their professional tax depending on their rates or wages provided by their respective state within the prescribed time.
- Professional tax is simple and easy to comply with. Rules and regulations governing professional tax enforce minimal restrictions and it is very simple to get registered with uncomplicated monthly or annual compliances.
- The deduction can be laid claim of earlier paid professional tax.
- Being a state tax, the professional tax service a local tax authority’s obligation to get the professional tax deducted from fees of the professional, business income, and salary.
Professional Tax Applicability
The Professional tax is applicable to the following class of individuals in states where they are working:
- HUF
- Individual
- One person Company/Private/Public
- Co-operative Society
- Body of Individuals
- Association of Person
Payment of Professional Tax
Professional tax is debited at a pre-determined slab rate, either monthly or annually by the Commercial Tax Department of that particular state. A self-employed person can pay professional tax online directly while in case of salaried individuals, it is completely employers’ responsibility to deduct the professional tax and deposit such tax to that particular State Government. The self-employed Individual shall get the Certificate of Enrollment from the tax department of the prescribed state.
Professional Tax Registration Process Online in India
Follow the below-mentioned steps to obtain professional tax registration certificate:
- The applicant can apply for ptrc registration certificate online through CTD official portal
- The applicant should file the application form along with all necessary scanned documents
- Professional tax registration certificate can also apply offline by submitting the application along with the documents directly to the concerned State Government with the prescribed fee
- Upon the receipt of an application, the concerned Tax authority shall scrutinize it for verification
- After the verification process, the Tax authority shall approve the application and grant the Professional tax registration certificate to the applicant
- In case there is any flaw in the application, the Tax Department can raise a query which should be responded on the prescribed time.
Consequences of Violation of Professional Tax Regulation
Individuals who fail to submit their p tax return are levied for the penalty. All states enforce a penalty for individual who is not registering professional tax even after it has become applicable. The amount of penalty for not submitting the professional tax varies from state to state. A penalty of Rs5/- a day is applicable on late in getting the registration of ptax enrollment certificate. For non/late payment of profession tax, the penalty of 10% of the amount of tax with is imposed. In case of late filing of returns, an individual has to pay Rs.1000 of penalty and after a month, a penalty will be increased to Rs.2000.
Frequently Asked Questions
When an employer salary does not deduct with professional tax then that particular individual should obtain a registration certificate from the concerned authority.
Responsibility to pay the professional tax varies such as for a salaried employed person, it is his employer’s responsibility and for a self-employed person, it is his own responsibility
In a few states, such as in Maharashtra, the government has initiated the composition scheme in which if any individual liable to pay Rs. 2500 as professional tax, he/she can pay even Rs. 10000 to the government as it will be discharged for professional tax liability for the next five years.
