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Professional Tax

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Title: Professional Tax


1
Professional Tax
  • Powered By www.taxqueries.in

2
Contents
  • What is Professional Tax?
  • States Allow Professional Tax in India
  • Professional Tax Exemptions
  • Who is responsible for deducting Professional
    Tax?
  • Professional Tax Registration
  • Professional Tax Slab Rates

3
What is Professional Tax?
  • The state government of India levies
    the professional tax on income from profession or
    employment.
  • The professionals earning an income from salary
    or anyone carrying out a profession such as a
    lawyer, Teachers, doctor chartered accountant,
    etc. are required to pay this professional tax.
  • The collection methods of is Different for
    different states in India.
  • Professional tax is to be paid by every single
    earning individual in India. The tax calculation
    and amount collected may vary from one state to
    another, but it has a limit of Rs. 2500/- per
    year. 

4
States Allow Professional Tax in India
  • The states which impose the professional tax in
    India listed below. Business owners, merchants
    and people carrying out various occupations come
    under the purview of this tax.
  • Andhra Pradesh
  • Karnataka
  • Madhya Pradesh
  • Telangana
  • Tripura
  • Tamil Nadu
  • West Bengal
  • Maharashtra
  • Chhattisgarh
  • Kerala
  • Meghalaya
  • Odisha, and Sikkim.

5
Professional Tax Exemptions in India
  • As per the Professional Tax Rules 1975, (Rule 32
    ) the following individuals are exempted to pay
    Professional Tax.
  • The parents of children with the permanent
    disability or mental retardation.
  • Members of the forces as defined in the Army Act,
    1950 or the Air Force Act, 1950 and the Navy Act,
    1957 including members of auxiliary forces or
    reservists, serving in the state.
  • The Badli workers in the textile industry.
  • An Individual suffering from a permanent physical
    disability (including blindness).
  • Women exclusively engaged as agent under the
    Mahila Pradhan Kshetriya Bachat Yojana or
    Director of Small Savings.
  • Parents or guardian of an individual who is
    suffering from mental retardation.
  • An Individual, who have completed the age of 65
    years, (with effect from 01/04/1995).
  • The Parents or guardians of a child suffering
    from a physical disability as specified in clause
    (C) with effect from 01/10/1996.

6
Who is responsible for deducting Professional
Tax?
  • The employer is responsible for deducting
    professional tax from the salaries of his
    employees and paying the amount so collected to
    the appropriate State government.
  • An Employer has to furnish a return to the tax
    department in the prescribed form within the
    specified time.
  • The return (which is filed) should include the
    proof of tax payment. In case the payment proof
    is not enclosed, the return shall be deemed
    incomplete or invalid.

7
Professional Tax Registration
  • Professional Tax is a state level that applies to
    salaried employees and professionals,
    including lawyers, chartered accountants, and
    doctors. In the Following state in India,
    Profession Tax is applicable in Andhra Pradesh,
    Assam, Chhattisgarh, Tamil Nadu, Karnataka, West
    Bengal, Maharashtra, Gujarat, Kerala, Meghalaya,
    Orissa, Tripura and Madhya Pradesh.
    Profession Tax Registration is mandatory within
    30 days of employing staff in business or, in the
    case of professionals, 30 days from the start of
    the practice. Profession tax needs to be deducted
    from the salary or wages paid the amount varies
    by state and amount.
  • Apply for the Registration Certificate to assesse
    states tax department within 30 days of
    employing staff for his business.
  • If the assesse has more than one place of work,
    then apply separately to each authority as
    regards the place of work coming under the
    jurisdiction of that authority.

8
Documents required for Profession Tax Registration
  • A Copy of PAN Card of the Company.
  • A Copy of Certificate of Incorporation of
    Memorandum Articles of Association.
  • A Copy of List of Directors of the Company.
  • A Copy of ID Proof Address proof of the
    directors.
  • A Copy of Board of Directors Resolution.
  • A Copy of List of Employees (On the letterhead of
    the company).
  • An ID Proof Address proof of Authorized
    Signatory.
  • A Copy of Leave License agreement of the
    premises.
  • A Copy of Leave License agreement of warehouse
    premises.
  • A Latest Electricity Bill or Maintenance Bill of
    the premises.
  • A Latest Electricity Bill or Maintenance Bill of
    the warehouse premises.
  • A Cancelled Cheque (Original).

9
Professional Tax Slab Rates in India
  • The maximum Professional Tax that can be imposed
    by any State in India is Rs. 2500/-.
  • Total amount of professional tax paid during the
    year is allowed as Deduction under the Income Tax
    Act.
  • The profession tax is a source of revenue for the
    State Governments which helps the different in
    implementing schemes for the welfare and
    development of the region. Professional Tax is
    deducted by the employers from the salary of the
    salaried employees, and same is deposited with
    the State Government.
  • For other individuals, they have to pay directly
    it to the Government or through the Local Bodies
    appointed to do so. Lets check the P Tax Slab
    fro the financial year 2016-17 in the following
    sections.
  • For More Click Professional Tax Slabs

10
Thank You
For More Information visit http//www.taxqueries.
in/income-tax/professional-tax/
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