Company / Limited Liability Partnership (LLP) / firm
Directors and partners
Employees can claim deductions on the amount paid as tax
legal compliances are easy to proceed
An essential source of revenue for state government
The Professional tax can be stated as a compulsory tax imposed by the govt. on all salaried individuals. PT is applicable to all or any kind of working professionals, namely, chartered accountants, lawyers, doctors, etc. It varies according to the person’s employment or profession. The tax rates are different across all states, however, the utmost amount which may be levied as Professional tax is Rs.2,500 once a year.
The maximum amount payable once a year as per the professional tax is INR 2,500. The professional tax is usually a slab-amount calculated as per the gross income of the professional. This amount is deducted from every employee’s income monthly by the employer. W.r.t. salaried and wage-earners, professional tax needs to be deducted by the employer from the salary/wages, and thus the employer needs to deposit an equivalent with the govt. Although, within the case of other classes of people, the tax needs to be paid by the person himself.
PT is applied to all kinds of trades & professions. It's to be paid compulsorily by every staffer who is employed in any private firm operating in India. Its registration is that the onus of every business owner, who must take up responsibility for deduction of PT and payment for the same.Professional Tax Variation With Each State Professional tax fees also will have different rates consistent with different states. Professional Tax For Self-Employed Professionals obtaining monthly regular income are susceptible to pay the professional tax. By the term ‘professional’, we mean people working in specialized fields like accountancy, media, etc. They can fill the form and acquire a registration number first. Then, utilizing that particular number, they are going to pay their taxes within the corresponding banks. In certain Indian states, specifically Maharashtra, the Professional Tax Act got amended from 1.04.2018. Today, an LLP and every partner of the respective LLP are susceptible to pay PT of Rs. 2,500/- once a year.
Professional Tax is imposed on working professional or salary earners by the state government of India. The person is liable for professional Tax when he earns a salary or practising as a professional such as a doctor, chartered accountant, lawyers, company secretary, etc.
An employer/professional must have dual registration. The 2 particular registrations are:
A) Professional Tax Registration Certificate for paying tax for trade/profession
B) Professional Tax Enrollment Certificate for deduction of such tax from the salaries/trade For offices with a multi-state presence, since the tax regimes vary in each state, a separate registration is required according to different State Legislations. Moreover, a Registration Certificate needs to be possessed by an employer within 30 days of the appointment of staff.
Every Indian state has a unique methodology and rate system while calculating the professional tax payment.
The tax is charged according to the income slabs set by the govt. and they need to follow Tax under Clause (2) of Article 276.
The maximum amount of tax that may be imposed is Rs.2,500 once a year, whereas the minimum slab rate is Rs.110 once a year.
Step 1: Consider if PT is applicable within the state of residence.
Step 2: If yes, determine the tax amount as per the monthly income.
Step 3: Inspect the tax slab rates consistent with your salary.
Income tax can be stated as a tax collected by the central government from all taxpayers. It's charged on a selected percentage of their income. Whereas, PT is collected by the respective state govt., according to a fixed slab for people engaged in business, occupation or employment.
Every state has a unique slab system, like in Maharashtra, if your monthly revenue is between Rs.7,500 to Rs.10,000, then the PT levied is Rs.175. But if the monthly salary is even less than Rs.7500, PT is not imposed.
Every person who needs to pay PT must file returns by December 31st, every year.
Open the state’s official website, go to “Professional tax e-payment”, enter step-by-step information and pay the fees.
After making the payment, download the acknowledgement receipt. This slip is itself proof.
You can directly apply for a PT Certificate on the state’s official website. Although just to avoid any kind of a mess, you can contact Ease2Bizz for this work.
Once you have registered for PT, you will receive your PTEC Number. On the official website, this number would be mentioned under ‘KNOW YOUR TIN’. Check it out after feeding your PAN Number.
Just like the PT payments, the amount of penalty also varies according to different states but the most of state have a fine of Rs 1000. The minimum penalty in Karnataka is 1.25%, while in West Bengal it's 1%.
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