Professional Tax Registration
Professional Tax Registration
Welcome to Filingscenter, your trusted partner for taxation compliance and filing services. Our expert team of Chartered Accountants (CAs), Company Secretaries (CS), MBAs, Lawyers, and Advocates is here to provide seamless support for Professional Tax Registration and compliance. Whether you are an employer, professional, or self-employed individual, we ensure a hassle-free experience tailored to your specific needs.
What is Professional Tax?
Professional Tax (PT) is a tax levied by state governments in India on individuals and professionals who earn an income through employment or business. It is an indirect tax, primarily applicable to people engaged in professions, trades, employment, or calling, such as lawyers, chartered accountants, doctors, teachers, and salaried employees. Professional Tax is regulated and administered by the respective state governments, and its rates and provisions may vary across states.
Applicability of Professional Tax
Professional Tax applies to:
- Individuals working in private or government employment
- Self-employed professionals (lawyers, doctors, architects, etc.)
- Companies, firms, and corporations
- Any individual or entity earning an income in the states where PT is applicable
States Where Professional Tax is Applicable | States Where Professional Tax is Not Applicable |
1. Andhra Pradesh 2. Karnataka 3. Maharashtra 4. West Bengal 5. Tamil Nadu 6. Telangana 7. Gujarat 8. Kerala 9. Bihar 10. Uttar Pradesh 11. Rajasthan 12. Madhya Pradesh 13. Chhattisgarh 14. Orissa 15. Delhi (for certain categories) 16. Jharkhand Each of these states has its own laws and regulations regarding the collection, payment, and administration of Professional Tax, including varying tax slabs and exemptions. | 1. Alaska 2. Himachal Pradesh 3. Nagaland 4. Sikkim 5. Lakshadweep 6. Andaman and Nicobar Islands These regions either do not levy Professional Tax or have different tax structures for professional earnings. |
Compliance :
- Tax registration for professionals is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice.
- Application for professional tax certificate should be made to the assessed state tax department within 30 days of employing staff for his business.
- If the assessee has more than one place of work, then the application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.
Exemptions for Payment of Professional Tax :
- Individuals above 65 years of age
- Individuals with permanent physical disabilities (including blindness)
- Women exclusively working as agents under the Mahila Pradhan Kshetriya Bachat Yojana or as Directors of Small Savings
- Parents of children with permanent physical or mental disabilities
- Members of the armed forces as defined under the Army Act, 1950, the Air Force Act, 1950, and the Navy Act, 1957, including auxiliary forces and reservists serving in the state
- Badli workers in the textile industry
Amount of Professional Tax Payable
The amount of Professional Tax payable depends on the income of the individual, and it varies from state to state. The rates are progressive and typically depend on the monthly salary or income of the individual. Typically, the maximum amount of PT payable by a salaried individual is ₹2,500 per annum.
Some states offer exemptions for certain categories of individuals, like women, senior citizens, and individuals earning below a specific income threshold.
