WHY WE NEED A PROFESSIONAL TAX REGISTRATION?

Professional Tax is a tax levied by the State government.A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs.

There are two types of Professional Tax Registrations:-

PTRC: Professional tax registration certificate (PTRC) is to be obtained by the company in the role of Employer.The company will have to deduct Professional Tax on Salaries paid by it to its employee where the salary paid to such employee exceeds Rs.7,500/- per month 

PTEC: Professional tax Enrollment certificate(PTEC) is to obtained by the company for its own existence and engaging in profession (and of-course business too) within the state of Maharashtra.

This is the type of tax imposed by the various Governments at the State level on salaried people serving in privately owned or government-owned entities. Professional tax is also applicable to those who are in professions like Doctors, Lawyer, Chartered Accountants, and much more or carry out some marketing form, are needed for paying this tax.

It is a State level tax, so the Professional Tax Registration is not needed in all the states. At the same time the approaches and rates vary as we move from one Indian state to the other. Professional tax is not levied in all Indian states. Let's have a look at the states that impose this tax:

  • Assam
  • Andhra Pradesh
  • Chhattisgarh
  • Karnataka
  • Gujarat
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Meghalaya
  • Sikkim
  • Odisha
  • Tamil Nadu
  • Tripura
  • Telangana
  • West Bengal

Employers subtract professional Tax from their employee salaries. And the deducted tax amount is deposited to the account associated with the Government of that specific the State.

Why Is it Necessary to Register Professional Tax?

Professional Tax Registration in Maharashtra is a legal obligation. Company owners need to necessarily get registered for professional tax and deposit it to State government on account of their company workers

  • Taxpayers can claim for this deduction from their salary, but they are eligible to claim for it in the same financial year in which they have paid it.
  • Professional tax registration in Pune can be reached comfortably, and agreement managed smoothly
  • The Government of the State is authorized to accumulate these taxes on employment & trades

Documents Needed To Register For Professional Tax

  • PAN card copy
  • Color photograph of the company representatives
  • Copy of Identity Proof such as Passport or Voter’s ID or DL or Aadhar Card of the Directors/ Partners/ Proprietor
  • Other necessary details of the employees

A Step-Wise Process of Professional Tax Registration

  • A Professional Tax registration request needs to be processed in the Aayaat Niryaat Form 2A order to the DGFT in the district or area where your office is located. The office should be registered under the law and regulations of the country; this is the basic requirement.
  • All the essential evidence in the form of proofs required for verification need to be submitted online at the time of applying. After submitting the documents online, the hard copy of the stamped & signed documents needs to be submitted physically at the concerned verification department.
  • On the successful Document verification, the applicant will be granted with the IEC.

Who Are Required To Pay Professional Tax

  • Anyone getting earnings from wages or anyone serving a professional service such as CA, CS, doctor, lawyer, and much more are obligated to pay this tax online.
  • If anyone who is working without any registered company, i.e., as an individual freelancer requires to pay professional tax.
  • If we talk about the other classes of people, the professional tax is subjected to be returned individually by its own.

Who Collects Professional Tax?

    The company owners are responsible for collecting the professional tax of all their employees. This tax is debited every month from their salaries. Then the tax amount is submitted to the state government. The government is strict to this; if any company found not following the tax-paying process, the company will be penalized as per the rules. If you are running your own single-person business, then you are responsible for paying the professional tax.

    For specialists who are not associated with any company or employer, they can go for Professional Tax Registration by their own through the online application process. As soon as the concerned department receives your application, you will be granted with a registration number. No matter you are the company owner or individual taxpayer, you can transfer the tax amount to the state government through this registration number. It is also valuable that some state governments an offer tax rebate in case, the round figure of the average tax is paid to the government for a few years in advance.

Entity Documents Required
Proprietorship Firm
  • Digital Photograph (3x3cms) of the Signatory Applicant
  • Copy of PAN card(self-attested)
  • Bank Certificate or cancelled bearing the applicant entities name
  • Premises proof of Proprietorship: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises
  • Aadhar Card of the Proprietor.
  • Attendance Register & Salary Register.
  • Authorization Letter for obtaining user I.D. and Password of Professional Tax Department
  • Documents of the Proprietor: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills
Partnership firm/LLP
  • PAN card of LLP/Partnership Firm: PAN card must be attested by the Designated Partner of LLP or any partner of Partnership firm
  • Certificate of Incorporation of LLP or Registration of Partnership.
  • LLP Agreement / Partnership Deed.
  • Premises proof of LLP/Firm: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
  • Bank Account of LLP/Firm: Cancelled cheque and bank statement.
  • List of Partners
  • Passport size Photographs of all Partners.
  • Documents of the Partner: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills
  • Aadhar Card of the Partners.
  • Partners consent for application to register under Professional Tax.
  • Attendance Register & Salary Register.
  • Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.
Company
  • PAN card of Company: PAN card must be attested by the Director of the Company.
  • Certificate of Incorporation of Company.
  • Memorandum and Articles of Association of the company.
  • Premises proof of Company: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
  • Bank Account of Company: Cancelled cheque and bank statement.
  • List of Directors.
  • Passport size Photographs of all Directors.
  • Documents of the Directors: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
  • Aadhar Card of the Company.
  • Board Resolution passed by the Director of the Company authorizing Professional Tax Registration.
  • Attendance Register & Salary Register.
  • Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.
SIMPLE & TRANSPARENT PRICING

Basic

Rs.12500/-
all inclusive fees
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Professional tax registration for employers having less than 20 employees.

Premium

Rs.15500/-
all inclusive fees
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Professional tax registration for employers having more than 40 employees.