PROFESSIONAL TAX

What is Professional Tax Registration?

Professional Tax is a form of tax which is collected by the State Government from professional business entities. These entities can be personnel like company secretaries and chartered accountants, doctors, lawyers, employers, traders, etc. These salaried individuals can be either working in government or non-government entities. Professional tax is imposed by the government of India under state level, which means every state has their own different rates and method of collection. However, not all states impose professional taxes.

Professional tax is deducted by employers from the salary of their employees and the same is deposited with the state government. Professional tax registration is obtained by employers and business entities. And even for professional tax there are 2 types namely PTEC and PTRC registration.

What are the benefits of paying professional tax?

1) Staying Compliant : Paying professional tax helps you to keep your company legally compliant and would help you to run your company to abide by laws.
2) Nominal Payable : The state governments have made the professional tax payable a slab system, which makes the tax payable a minimal amount based on the earnings of an employee.
3) Avoid Penalties : Not paying professional tax is a crime, and the authorities may take legal action against you.