All You Need To Know About Professional Tax in India
Professional Tax is a tax which is levied by means of the state on the income earned via profession, exchange calling or employment. This tax is levied cantered on slab charges depending on the sales of the man or woman. This slab cost is decided by the state executive; therefore, it varies from state to state. Any amount paid as occupation Tax to the state executive is allowed as a deduction below part 16 of the revenue Tax Act.
Each man or woman dependable to pay tax (both on his possess or on behalf of staff) will have to observe for Professional tax registration in India within the prescribed type with the prescribed authority. We propose those personal constrained companies, one man or woman organizations, companions of limited legal responsibility Partnerships, Partnership companies observe for profession tax registration right away upon incorporation. In the case of salary and wage earners, the professional taxes (PT) are to be deducted by the corporation from income and wages, and the agency is dependable to pay it to the state government.
How to Register for Professional Tax?
Observe for the Registration certificate at your state’s tax division
If in case you have multiple place of work, apply individually to each authority concerned
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
Cost varies from vendor to vendor. Mainly ranges from INR 2000-4000.
Most of the small corporations would really like to have one place to go for payroll, tax practice, and income tax reporting, bookkeeping, and monetary statement filing. The pleasant part about offering these additional services is that they generate sales all round a year. Professional tax preparation is a great way to generate significant revenues and a regular client base. Are you looking to register for a professional tax? Do you own a business as a private set up?
This is what Kanakkkupillai.com does for you! The best professional tax registration company in India provides distinct registration services such as bookkeeping services, tax audit, statutory audit, professional tax registration and professional tax filing, service tax registration, service tax filing, Sales tax assessment and so on.
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 if any individual avoiding it can be reliable for the penalty or legal issues and self-employed individual and employer should also pay their professional tax depending on their rates or wages provided by their respective state within the prescribed time.
- Professional tax is simple and easy to comply with. Rules and regulations governing professional tax enforce minimal restrictions and it is very simple to get registered with uncomplicated monthly or annual compliances.
- The deduction can be laid claim of earlier paid professional tax.
- Being a state tax, the professional tax service a local tax authority’s obligation to get the professional tax deducted from fees of the professional, business income, and salary.
Consequences of Violation of Professional Tax Regulation
Individuals who fail to submit their p tax return are levied for the penalty. All states enforce a penalty for individual who is not registering professional tax even after it has become applicable. The amount of penalty for not submitting the professional tax varies from state to state. A penalty of Rs5/- a day is applicable on late in getting the registration of ptax enrollment certificate. For non/late payment of profession tax, the penalty of 10% of the amount of tax with is imposed. In case of late filing of returns, an individual has to pay Rs.1000 of penalty and after a month, a penalty will be increased to Rs.2000.