Professional Tax Registration Online in India

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Who is required to obtain professional tax registration online?

In India, all types of trades and professions are subject to professional tax. Every employee of a private firm operating in India must pay the tax. All business owners are responsible for registering for professional tax as well as paying it.

Self-employed professionals must pay the professional tax if they receive a regular monthly income. A professional is someone working in a specialized area, such as accountancy, media, etc.

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Rs. 6999/-
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As per the following timeline,
your selected plan will be processed

Day 1-2

Collect

We collect necessary information & documents.

Day 3-4

Draft

We prepare all the requirements for application.

Day 5-6

Process

We proceed to submit the application to the respective State Authority.

-

Finally

Government processing time.Issuance PT registration Certificate

Professional Tax Registration Online:
An Overview

The State may impose a professional tax on income earned by profession, trade, or employment. It was first imposed in India in 1949, and the power to levy Professional Tax has been given to the State under clause (2) of Article 276 of the Constitution of India. Depending on the income of the individual, this tax is levied at different slab rates. Professional Tax registration online will provide a flexible option for the employer to comply with state authorities.

The state government collects the professional tax, as opposed to the central government, which collects Income Tax. Each State has its own professional tax rules. Since the rules differ from State to State, each State can set its limits and rates. However, the maximum amount limit has been increased to Rs.2500 per year. Various salary slabs apply to the levying of a professional tax in different states.

What are the benefits of Professional tax registration online?

Nominal Tax

State taxes are nominal and structured based on a salary range, thus imposing an insignificant burden on taxpayers.

Avoid paying penalties

In the absence of professional tax registration, huge penalties continue to cascade over time.

Ensure compliance

Ensures compliance with state laws and keeps your business running smoothly

Claim Deductions

Depending on the professional tax paid, deductions can be claimed from salaries. You will receive a deduction for the payments made in the year that you made them.

What is the applicability of the Professional Tax Registration Online?

Firms/Companies/LLPs

The professional tax applies to firms, LLPs, corporations, societies, HUFs, associations, clubs, and companies. A branch involved in all of these will also be considered a separate individual under the professional tax.

Individuals (Professionals)

Professional individuals who need to pay professional tax include legal professionals such as notaries, solicitors, physicians, managers, tax consultants, surveyors, company secretaries, chartered accountants, insurance agents, engineers, architects, and contractors.

Partners and Directors

Those serving as company directors, partners in firms, LLP partners, or designated partners should pay professional tax. As soon as they are appointed to these roles, they should register under the professional tax act.

Employers

By registering on the government's portal, the company/firm must obtain a professional tax enrollment certificate (PTEC) within 30 days of incorporation.
30 days from the day they hire a new employee, the company/firm must get a professional tax registration certificate (PTRC). The employer is required to deduct professional tax from each employee's salary and submit it to the professional tax department with the return.

List of Documents Required for
Professional Tax Registration Online

  • ID proof of Director/ Partner/ Proprietor

  • Address proof of Director/ Partner/ Proprietor.

  • Shop and Establishment Certificate(if any)

  • Passport size photograph of the Director/ Partner

  • MoA & AoA (if applicable ) with Incorporation Certificate

  • PAN Card of Director/ Partner/ Proprietor

  • Salary details of employees

  • Cancelled Cheque and Bank Statement (as applicable)

NOTE:

*We will collect additional documents based on the information you provided to the filingbee.

Here Are Some Frequently Asked Questions

The central government collects income tax directly from all taxpayers. Their income is calculated based on a certain percentage. In contrast, the professional tax is an indirect tax collected by the state government. Taxes are based on a slab for people engaged in business, occupation, or employment.

In addition to the company paying the company's and its director's professional tax, all individuals (including professionals and sole proprietors without any employees) must register with PTEC. However, the PTRC allows the employer to deduct and deposit professional taxes from its employees' salaries and deposit them with the government.

In India, all types of trades and professions are subject to professional tax. Every employee of a private firm operating in India must pay the tax. All business owners are responsible for registering for professional tax as well as paying it.
Self-employed professionals must pay the professional tax if they receive a regular monthly income. A professional is someone working in a specialized area, such as accountancy, media, etc.

When salaried employees are liable to pay professional tax, the employer is obligated to register and deduct the tax from the employee's salary and deposit it into the state government's account.
If you are self-employed, you must register and pay professional tax quickly and accurately if covered under the professional tax.
Employers/Individuals must ensure to obtain a professional tax registration online or with the authorities.

The Professional Tax Rules provide exemptions to the following individuals.
  • Parents of disabled children.
  • Armed forces members (as defined by the Air Force Act, Navy Act, and Army Act) include auxiliary forces/reservists serving in a particular state.
  • People with a permanent physical disability (including blindness)
  • Individuals over the age of 65.
  • Badli workers engaged in the textile industry.
  • Women engaged exclusively in the Mahila Pradhan Kshetriya Bachat Yojana or the Directorate of Small Savings.
  • Institutions that teach up to 12th grade
*Additionally, there are several exemptions from different states

Professional tax is a mandatory tax, and there are penalties and fines in case of non-compliance.

Punjab, Bihar, Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Sikkim, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh.

A shop & establishment registration is required in a few places for this application. So, it depends on the law of the jurisdiction where the premise is located.

Any amount paid as Professional Tax to the State Govt. is allowed as a deduction under Section 16 of the Income Tax Act, and Income Tax on the Balance Amount is levied as per the Income Tax Slab Rates in force.

Each State has its own professional tax rules. Since the rules differ from State to State, each State can set its limits and rates. However, the maximum amount limit has been increased to Rs.2500 per year. Various salary slabs apply to the levying of a professional tax in different states. In contrast, professional tax registration online facility is available across most states.

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