Professional Tax Filing

Professional tax is an indirect tax levied and collected by the State Governments in India. It is deducted from the salary of employees every month. It is also applicable to professionals like Chartered Accountant, Lawyer, doctor etc.

Professional Tax is paid based on the slab rates provided by the Government. The maximum amount payable shall be Rs. 2,500/- per annum per employee. It is collected by the Commercial tax department of every state. Our professional team would help you with Professional tax compliances in the most efficient manner.

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    Documents Required for Company Registration

    Salary Register

    Salary Register

    Salary register maintained by the company of its employees

    Identity Proof

    Identity Proof

    Identity proof of all directors

    Registered Business Proof

    Registered Business Proof

    if the applicant is Company: COI, AOA & MOA

    Pan Card

    Pan Card

    PAN of the company

    Address Proof

    Address Proof

    Address proof for business, Address proof of directors

    Letter from Business owner

    Letter from Business owner

    Letter from Business owner

    Professional Tax Applicability

    Professional tax applies to the following class of persons in states where it is applicable:

    • Individual
    • HUF
    • Private/Public/One person Company
    • Co-operative Society
    • Association of Person
    • Body of Individuals

    Payment of Professional Tax

    Professional tax is paid and collected at a pre-determined slab rate. It is collected either annually or monthly by the Commercial Tax Department of the respective state. Professional tax is paid directly by a self-employed person engaged in profession or trade business while in case of salaried employees, it becomes employers’ responsibility to deduct and deposit such tax to the respective State Government.

    In case of a salaried individual, the employer shall deposit such tax every month while a self-employed person has the liberty to pay professional tax either monthly or annually. The self-employed taxpayer shall obtain Certificate of Enrollment from the tax department of the concerned state.

    Tax Rate Slab

    Professional tax is a state tax which is levied as per the slab provided by the respective states. Some states charge it at a fixed percentage while others charge it as a fixed amount based on Income Slab such as:

    State

    Income

    Tax Liability

    Andhra Pradesh

    Up to 15000

    15000-20000

    Income exceeding 20000

    NIL

    INR 150

    INR 200

    Gujarat

    Up to 5999

    6000-8999

    9000-11999

    Income exceeding 12000

    NIL

    INR 80

    INR 150

    INR 200

    Karnataka

    Up to 15000

    Income exceeding 15000

    NIL

    INR 200

    Kerala

    Up to 11999

    12000-17999

    18000-29999

    30000-44999

    45000-59999

    60000-74999

    75000-99999

    100000-124999

    Income exceeding 125000

    NIL

    INR 120

    INR 180

    INR 300

    INR 450

    INR 600

    INR 750

    INR 1000

    1250

    Maharashtra

    Up to 7500 (For male)

    Up to 10000 (for female)

    7500-10000 (for male)

    Income exceeding 10000 (for male & female)

    NIL

    NIL

    INR 175

    INR 200 – 11 months

    INR 300- 12 months

    Telangana

    Up to 15000

    15000-20000

    Exceeding 20000

    For professionals such as lawyers, architect, practising CA/CA/CMA with experience

    ü  up to 5 years

    ü  more than five years

     

     

    NIL

    INR 150

    INR 200

     

     

     

    NIL

    INR 2500 (annual)

    West Bengal

    Up to 10000

    10000-15000

    15001-25000
    25001-40000

    Income exceeding 40000

    NIL

    INR 110

    INR 130

    INR 150

    INR 200

    Benefits of filing Professional tax return

    Tax Benefit

    The amount paid towards professional tax is allowed as deduction under the Income Tax Act, 1961.

    Statutory Compliance

    Payment of professional tax would make you tax complainant and therefore helps in avoiding penalty.

    Professional Tax Registration Process Online

    Frequently Asked Questions​

    An employer who deducts the tax from the salary of the employee and pays to the government, such entity shall obtain registration certificate while employer if not deduct professional tax then the individual shall get enrolment certificate from necessary authority.

    No, at present professional tax is imposed in following states only:

    Responsibility to pay and deduct professional tax varies for the following taxpayers:

    In some states, the government has initiated the composition scheme, such as in Maharashtra. In such a scheme for example, if any person liable to pay INR 2500 as professional tax can pay lump sum amount of INR 10000 and will be discharged for professional tax liability for further five years.

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