Professional Tax is a state-level tax that applies to salaried employees and professionals, including professional like chartered accountants, lawyers and doctors etc. Business owners, salaried individuals, merchants, freelancers and people carrying out various occupations comes under the purview of this tax.

 

Did you know that Professional Tax is applicable even if you do not have any employees? Talk to us to know more. 

 

States in which Professional Tax is applicable:

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

 

Types of Registration

(A) Enrollment Certificate (EC) –

• Registration of Business (Entities), Professionals / Freelancers
• Payment by Business Owners, Owners etc
• Annual Payment
• Fixed Amount for Pvt Ltd Companies, LLP and Based on Turnover
• Annual Return

 

(B) Registration Certificate (RC) –

• Registration for employer for deducting tax from salary of employees.
• Payment by Employers after deducting from the salaries of the employees
• Monthly/ Quarterly/ Semi Annually Payment (state wise)
• Employee Wise based on Salary Slabs of each employee
• Annual Return (in most of the states) or monthly returns along with the payments

 

Amount of Professional Tax (RC):

The maximum amount payable per annum towards professional tax is INR 2,400. The professional tax is usually a slab-amount based on the gross salary of the employee. It is deducted from his income every month.

 

For example, PT Rate for the state of West Bengal is:

Slab for salaries or wages	Rate of Tax
Upto Rs.10,000	NIL
Rs.10,001 – Rs.15,000	Rs.110
Rs.15,001 – Rs.25,000	Rs.130
Rs.25,001 – Rs.40,000	Rs.150
Rs.40,001 – above	Rs.200

PT Rate for the state of Karnataka is:

Slab for salaries or wages	Rate of Tax
Upto Rs.15,000	NIL
Rs.15,001 – above	Rs.200

 

PT Rate for the state of Mumbai is:

Slab for salaries or wages	Rate of Tax
Upto Rs.7,500	NIL
Rs.7,501 – Rs.10,000 (Not applicable for Women)	Rs.175
Rs.10,001 – above (April – Jan & March)	Rs.200
Rs.10,001 – above (for the month of Feb)	Rs.300

 

Payment:

The rules for payment of the same differs with the State. For example,

• West Bengal- 21^stof every month
• Tamil Nadu- 30^thSeptember and 31^st March
• Maharashtra- 20^thof every month

 

Returns:

Like payment of Professional Tax, Professional Tax Returns to be filed also differs with every state. For example,

• West Bengal- 30^thApril (Annual)
• Tamil Nadu- 30^thSeptember and 31^st March (Half Yearly)
• Maharashtra- 20^thof every month (Monthly)

 

In brief:

Who is it for- All Entities/ self-employed (EC) & Employers (RC)

When You Need It- Within 30 days of initiation of operations

Issuing Authority- Respective State Government

 

 

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For any query, support or feedback, reach us at India Tax & Legal Compliance or Call/WA us at +91-9230033070 for any support/query/feedback.

 

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