What is Professional Tax Payment And Its Due Dates? 

Introduction

In this article, we’ll talk about professional tax payment in India, the different tax rates in various states, the documents needed to register for it, and which states it applies to. Employers deduct professional tax from their employees’ salaries and pay it to the state government. Self-employed people need to get a ‘Certificate of Enrolment’ from their state’s organization to pay the professional tax.

What is Professional Tax in India?

Professional Tax isn’t just for professionals. Anyone who earns money through a job, trade, or any other way has to pay this tax. The State Government has the authority to impose and collect Professional Tax according to Clause (2) of Article 276 of the Indian Constitution.

Many Indian states have chosen not to use this right. In other states, professional tax payments are charged based on rates set by each state. However, no state can charge more than 2,500 INR. According to the Income Tax Act of 1961, you can deduct professional tax payments from your taxable income.

Professional Tax Applicability

The following groups of people are subject to the profession tax applicability:

• Salaried Individual
• HUF (Hindu Undivided Family)
• Whether incorporated or not, a firm / cooperative society / company / association of persons or a group of individuals. 
• Salary or wage holders

States where Professional Tax Payment is Applicable

professional tax is applicable only in these states and  union territory:

• Andhra Pradesh
• Assam
• Bihar
• Chhattisgarh
• Goa
• Gujarat
• Jharkhand
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• New Delhi
• Odisha
• Punjab
• Puducherry
• Sikkim
• Tamil Nadu
• Telangana
• Tripura
• West Bengal

Professional Tax Slabs in Different States

Professional Tax in Andhra Pradesh

Professional Tax in Assam

Professional Tax in Bihar

Professional Tax in Chhattisgarh

Professional Tax in Goa

Professional Tax in Gujarat

Professional Tax in Jharkhand

Professional Tax in Karnataka

Professional Tax in Kerala

Professional Tax in MP (Madhya Pradesh)

Professional Tax in Maharashtra

Professional tax of Rs. 200 will be withheld for the first eleven months and Rs. 300 for the final month from employees making more than Rs. 10,001.

Professional Tax in Manipur

Professional Tax in Meghalaya

Professional Tax in Mizoram

Professional Tax in Nagaland

Professional Tax in New Delhi

Professional Tax in Odisha

Professional tax withholding will be deducted at the rate of Rs. 200 for the first eleven months and Rs. 300 for the last month from employees making more than Rs. 3 lakhs.

Professional Tax in Punjab

Professional Tax in Puducherry

Professional Tax in Sikkim

Professional Tax in Tamil Nadu

Professional Tax in Telangana

Professional Tax in Tripura

Professional Tax in West Bengal

Documents Required for Professional Tax Registration in India

Below are the list of documents that is required for Professional Tax Registration in India:

• A copy of your company’s PAN card
• Certificate of Registration
• A copy of the MOA and AOA
• List of the company’s directors and partners.
• Directors/Partners must provide proof of their identity and address.
• A copy of the Board of Directors’ Resolution.
• Employees’ list.
• Proof of address/lease agreement for registered office/warehouse.
• Electricity/Maintenance Bill for the registered office, factory, or warehouse.
• Cancelled Bank Account Cheque.

How to pay professional tax payment online?

The process for paying professional tax payment online can vary by state, but the needed information is the same everywhere. Here’s how to do it:

• Open your state’s commercial tax department website.
• Select “professional tax payment.” and fill the form
• Enter your necessary information like  company’s name, address, registration number, and the dates for the payment.
• Enter the amount you’re paying
• Provide your bank details to start the payment and submit
• After submittion now pay online and save the receipt for future reference.

Within 30 days of the employee’s first day on the job, the employer must apply for registration. If the office is located in more than two states, different applications must be submitted to the appropriate authorities in each state.

Authority that collects Professional Tax Payment

Employers deduct professional tax from employees’ monthly salaries. They must then pay the professional tax to the government or face penalties for failing to collect or pay the tax. If you are self-employed, you are responsible for paying the professional tax.

Professionals who do not work for an employer might apply for it by filling out a form. The individual will be given a registration number once the form is submitted. Professional tax payments can be paid at banks using these registration numbers. It’s also worth mentioning that in some jurisdictions, the government will give you a tax break if you pay all of your taxes in one go for a few years, therefore it is important for a taxpayer to know the tax brackets of their states.

Conclusion

The state government levies a tax on professionals. This tax is not imposed by all states, and only a few of them collect it. This tax generates income for the states that levy it. A penalty of INR 5/- per day is imposed for failure to get a Professional Tax Registration Certificate. If you pay your Professional Tax late or do not pay it at all, you will be fined 10 percent of the amount you owe. It charges a penalty of INR 300 per return if returns are filed late.