How to Register for Professional Tax or PT in India
Professional Tax is a tax levied by the state on income earned through a profession, trade, or employment.
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Professional Tax is a tax levied by the state on income earned through a profession, trade, or employment.
Each person liable to pay tax (either on his own or on behalf of employees) must apply for Professional tax registration in India in the prescribed form with the prescribed authority. We recommend that Private limited companies, one-person organizations, companions of limited legal responsibility Partnerships, and Partnership companies register for profession tax registration as soon as they are formed. In the case of salary and wage earners, the corporation is responsible for deducting professional taxes (PT) from income and wages and remitting them to the state government.
How to Register for Professional Tax?
Check with your state's tax division for the Registration certificate.
If you have multiple places of employment, apply to each authority separately.
Files required for Professional Tax
- Memorandum of association
- List of directors and their proofs,
- Quantity of staff working throughout the fiscal 12 months and
- A duplicate of Board decision
Time taken for Professional Tax
Often it takes about 10-15 working days.
Price of Professional tax registration
The cost varies depending on the vendor. The price ranges primarily between INR 2000 and INR 4000.
Most small businesses would prefer to go to a single location for payroll, tax practice, and income tax reporting, bookkeeping, and monetary statement filing. The benefit of providing these additional services is that they generate sales all year.
Benefits of Professional Tax Registration Online in India
Following are the reasonable factors why should one never miss professional tax:
- Paying a professional tax registration online in India is a judicial requirement, and anyone who fails to do so may face penalties or legal issues. Self-employed individuals and employers should also pay their professional tax based on the rates or wages provided by their respective state within the time frame specified.
- Professional taxation is straightforward and simple to implement. Professional tax rules and regulations impose minimal restrictions, and it is very simple to become registered with simple monthly or annual compliances.
- A claim for previously paid professional tax can be made.
- As a state tax, it is a local tax authority's obligation to have the professional tax deducted from professional fees, business income, and salary.
Consequences of Violation of Professional Tax Regulation
Individuals who fail to file their profession tax return face a penalty. Individuals who do not register for professional tax, even after it becomes applicable, face a penalty in all states. The amount of the penalty for failing to submit the professional tax varies by state. If you are late in registering your professional tax enrollment certificate, you will be fined Rs5/- per day. A penalty of 10% of the tax amount is imposed for non-payment or late payment of profession tax. In the event of late filing of returns, an individual must pay a penalty of Rs.1000, which will be increased to Rs.2000 after a month.
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