Professional Tax

What is professional tax?

Professional Tax is a tax that is levied by the state government, it is levied on the income that is earned by the trade and is remitted by the employer. A person has to pay a professional tax of around Rs.2500 every year to the state or any local authority by the way of the tax on the profession, trades, callings, and the employments.

Professional tax in India is not just levied on the professionals but it is levied on all employees, a person carrying business, freelancers and professionals, etc and it is subject to the income exceeding the monetary threshold if there is any.

Professional tax is a kind of tax that is levied by the state government. The state government is also empowered to make laws with to the professional tax though being a tax on income under Article 276 of the constitution of India which deals with the taxes on profession, trades and callings, and employment. It may be noted that the professional tax is a deductible amount and can be deducted from the taxable income.

Professional tax is just like income tax, but the central government and the professional tax collect the income tax managed by the state government. At the time of the introduction, the maximum limit on the tax to be collected as the professional tax was Rs. 250. There has been an upward revision of the professional tax to Rs. 2500 and has allowed the government to raise the additional resources.

• An acknowledgment of the online form, along with the printout of the digital form submitted.
• Copy of PAN Card.
• Residence proof of Partner, Director, Proprietor.
• Proof of Constitution of business like Certificate of Incorporation.
• Memorandum of Association
• Articles of Association
• Address proof of Business place.
• Blank Cancelled Cheque.
• Establishment Certificate.
• PAN& PTEC details.
• Current account statement
• Business premise proof sale deed if the premise is owned and NOC from the owner of the place is rented.

Who has to pay the Professional in India

Professional Tax in India is applicable for the individuals and entities mentioned here :

• Companies
• Firms
• Limited Liability Partnerships
• Corporation
• Societies
• Hindu Undivided Family
• Associations
• Clubs
• Legal Practitioners
• contractors, Architects
• Engineers
• Insurance Agents
• Chartered Accountants
• Company Secretaries
• Surveyors
• Tax consultants
• Management Professionals as well as Medical Representatives such as doctors, etc.