Professional Tax Registration and Compliance

Professional Tax Registration and Compliance

Professional Tax is a state government levy applicable to salaried individuals and professionals, with a maximum annual limit of INR 2,500. Businesses are required to register for Professional Tax within one month of starting operations in a particular state. Easily register for Professional Tax with the help of TaxMyles.

Overview of Professional Tax Registration and Compliances

Professional Tax is a state-level tax assessed and collected by the respective state governments. The tax rates vary from state to state. Registration for Professional Tax must be obtained by employers for their employees or by individual professionals. Employers are responsible for deducting and paying Professional Tax on behalf of their employees.

Professionals must also register themselves, as mandated under Article 276 of the Constitution of India. Since Professional Tax is governed at the state level, the registration process and applicable laws can differ across states. The maximum amount of Professional Tax payable by an employee or a professional cannot exceed INR 2,500 per year.

Procedure for Professional Tax Registration

  1. Sign In – Visit the official website of the Professional Tax department and create a User ID on the portal.
  2. Fill the Application Form – Complete the online application form by providing the required details of the employer and employees.
  3. Submit for Approval – Submit the filled application along with the necessary documents. The department will verify the information provided.
  4. Certificate of Registration – Once the details are verified, the department approves the application and issues the Professional Tax Registration Certificate. A PT code is provided to set up the User ID. Businesses can download a copy of the registration certificate from the portal.

Documents Required for Professional Tax Registration

For Professional Tax (PT) Registration, the required documents in short are:

  1. Identity Proof of the applicant (Aadhaar, Passport, Voter ID).
  2. Business Address Proof (Rent agreement, Utility bill).
  3. PAN Card of the business owner.
  4. Certificate of Incorporation (for companies) or Partnership Deed (for partnerships).
  5. Bank Account Details (cancelled cheque or bank statement).
  6. GST Registration Certificate (if applicable).
  7. Photographs of the applicant.

These documents are required for PT registration, which can be done through the state tax department.

Professional Tax Compliance

After registering for Professional Tax, businesses and individuals must ensure the following compliances:

  1. Timely Payment of Professional Tax
    Employers must deduct and pay professional tax on behalf of their employees every month. The tax must be paid within the prescribed due dates to avoid penalties.
  2. Filing Monthly Returns
    Monthly professional tax returns must be filed as per state regulations. These returns include details of tax deductions for all employees.
  3. Annual Returns
    Employers are required to file an annual professional tax return summarizing all monthly tax deductions and payments for the year.
  4. Maintain Records
    Maintain accurate records of all employees’ professional tax deductions, payments made, and return filings. These records are essential for audits and compliance checks.
  5. Employee Registration
    Ensure that all employees are registered for professional tax and their details are updated correctly in the system.
  6. Obtain Professional Tax Registration Certificate
    Ensure the business is registered with the state government and has a valid professional tax registration certificate.
  7. Penalty for Non-Compliance
    Failure to comply with professional tax requirements, including timely payment and filing, may result in penalties or fines as per state laws.
  8. Employee-Specific Deductions
    Deduct the correct amount of professional tax from employees based on their income slab as per the state-specific rules.

Why Choose TaxMyles for Professional Tax Registration and Compliances?

  • Expert Guidance – Receive step-by-step assistance with professional tax registration and compliance from experienced professionals.
  • Timely Filing – We ensure timely filing of monthly and annual professional tax returns, avoiding penalties and keeping you compliant.
  • Accurate Deductions – Ensure correct and efficient professional tax deductions for your employees, based on applicable state rules.
  • Comprehensive Support – From registration to compliance and filing, we handle all aspects of professional tax, allowing you to focus on your business.
  • Cost-Effective Solutions – Get expert services at competitive prices, tailored to suit your needs and budget.

Trust TaxMyles for hassle-free and reliable professional tax registration and compliance services.