Last Updated on August 21, 2024 by Kanakkupillai
Before discussing the documents required for Professional Tax Registration let us have a glance at what is a professional tax. If you look at your pay slips, you will find a small tax deduction on it along with the other deductions or elements such as conveyance, HRA, and basic salary breakups. It will be mostly around Rs. 200 and it is known as professional tax.
Professional Tax is a direct tax imposed on professions and trades by the state governments in India. It is a state-level tax and varies from state to state, there are few places where no deduction is charged in the name of professional tax.
Who has to pay Professional Tax?
A person getting an income from salary or a person practicing a profession such as doctor, company secretary, chartered accountant, lawyer, doctor and likewise, are required to pay this professional tax.
Professional Tax is compulsorily paid tax by every individual engage in any profession, employment, trade, and callings with the Greater Chennai Corporation city limits. And, it is the owner’s responsibility to deduct this tax from the salaries of his workers and to pay the amount to the appropriate government department.
In Chennai, the application form for Professional Tax registration is obtained from the Corporation of Chennai at Ripon Building, or you can visit www.chennaicorporation.gov.in to apply for Professional Tax.
What are the Documents required for Professional Tax Registration in Chennai?
To apply for professional tax registration, visit the online portal www.chennaicorporation.gov.in, along with the required documents.
Here is the list of documents required for Professional Tax Registration
- Duly attested PAN card of Company/LLP by directors of the company
- Incorporation Certificate, MOA & AOA / LLP Agreement.
- If the company owns the premises, proof of the company’s premises is needed. If not, a NOC from the owner of the company premises is needed.
- Bank Account details of the Company: bank statement and Cancelled cheque
- List of Directors
- Passport size Photographs of all Directors,
- Id and address proof of all directors
- Board Resolution or consent statement of partners
- Attendance & Salary Register
- Certificate from Commercial Tax Department
There is no need to pay any fee when submitting the professional tax form. Once you submit the application form, you will receive an acknowledgement number for filing along with the professional tax Registration Number.
Just have a look at Professional Tax Rates in Tamilnadu, India. The following are the slabs of Professional Tax:
| S.No | Average Half-Yearly Income | Half-yearly Profession Tax | |
| From | To | ||
| 1 | Upto 21,000 | NIL | |
| 2 | 21,001 | 30,000 | 135/- |
| 3 | 30,001 | 45,000 | 315/- |
| 4 | 45,001 | 60,000 | 690/- |
| 5 | 60,001 | 75,000 | 1,025/- |
| 6 | 75,001 and above | 1,250/- | |
In India, professional tax can be paid by challan, cheque, or demand draft. The due dates for Professional Tax payment and Filing of Professional Tax Returns are 1 April and 1 October for the respective half-year.
Benefits of Professional Tax Registration Online
Following are the reasonable factors why one should never miss professional tax:
- Paying a professional tax is a judicial requirement, and if any individual avoiding it can result in penalties or legal issues. Self-employed individuals and employers should also pay their professional tax depending on the rates or wages provided by their respective states 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 out as a claim of earlier paid professional tax.
- Being a state tax, the Professional tax a local tax authority’s obligation to get the professional tax deducted from fees of the professional, business income, and salary.
