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Professional Tax Registration
Statewise

Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade. Professional Tax varies from state to state. Contact us to Prepare your Application for Professional Tax Registration and Get your professional Tax Registration done at your Door Step.

Professional Tax Registration: Overview

Unlike income tax imposed by the Central Government, professional tax is levied by the government of a state or union territory in India. In the case of salaried and wage earners, the professional tax is liable to be deducted by the Employer from the salary/wages, and the same is to be deposited to the state government. In the case of other classes of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one State to another, but it has a maximum limit of Rs. 2500/- per year.

Types of Professional Tax Certificates

The types of Professional Tax Certificates are enlisted below:

  • PTEC (Professional Tax Enrolment Certificate): This type of professional tax is paid by the business entity, i.e. Private/ Public Limited Company, owner or a professional, i.e. Sole Proprietor or Director Etc. through this certificate.
  • PTRC: (Professional Tax Registration Certificate): Here, the Government or Non- Government employer deducts the tax from the employee’s salary and deposits the same to the government.

Applicability of Professional Tax Registration

This tax is levied on all kinds of professions, trades, and employment. Profession tax is applicable to the following classes of persons:

  • Individual;
  • Public/Private/One person Company/LLP;
  • Partnership;
  • Co-operative Society;
  • Association of Person;
  • HUF (Hindu Undivided Family).

The professionals earning an income from salary or other practices such as a lawyer, teachers, doctors, chartered accountants, etc. are required to pay professional tax.

Documents Required for Professional Tax Registration

  • Application Form;
  • Certificate of Incorporation / LLP Agreement;
  • MOA and AOA;
  • PAN Card of Company/LLP/Proprietor/Owner/Director;
  • NOC from the landlord, where the business is situated;
  • Passport size photos of Proprietor/Owner/Director;
  • Address and identity proof of Proprietor/Owner/Director;
  • Details of employees and salaries paid;
  • Additional registrations and licenses.

Procedure for Professional Tax Registration

The procedure for Professional Tax Registration depends from state to state. Returns must also be filed at specified intervals depending on the State’s requirement. Professionals /Employers seeking professional tax registration shall follow the below-mentioned procedure.

Step 1: Filing the Application with Necessary Documents 

The applicant must file the application form and the requisite documents. 

Step 2: Submitting the Application to the Concerned state Government & Tax Department

The applicant needs to submit the Application with the necessary documents to the concerned state government. A copy of the same should also be submitted to the tax department.

Step 3: Scrutinization by the Tax Authority: On receipt of an application, the tax authority shall scrutinize the application to ensure that all the information is correct.

Step 4: Issue of Registration Certificate: The authority will issue the Registration certificate after successfully scrutinizing all the documents.