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ONLINE REGISTRATION OF PROFESSIONAL TAX IN INDIA

All employers and persons engaged in any profession or trade should register for professional tax and obtain a registration certificate. The professional tax is one of the sources of revenue for the state.  This professional tax registration and enrolment is easy, affordable and simple thorough Beta now.

The professional tax is imposed on all professionals such as chartered accountants, lawyers and doctors.  All state governments enforce this professional tax on all salaried people except the states like Delhi, Haryana and UP which are exempted from this professional tax.

Theindividual professionals, business owners, even freelancers also should pay this professional tax if their income exceeds certain threshold limits.  Thistax various from state to state and the maximum amount of professional tax imposed is Rs. 2500 per year.

WHO WILL PAY PROFESSIONAL TAX IN INDIA

Self-employed professionals of any field will come under this group and are legally responsible for paying professional tax to the State Government.  The Commercial Taxes Department collects this tax, and the tax slab differs from state to state. The tax can be paid annually and also as monthly tax, which will be calculated based on their annual taxable income.  These self-employed individuals get the certificate of Enrolment from the authorized authority in a specified format.If the individual who is salaried or wage earners professional tax is paid or deducted from the salary every month, the employer will not be able to make a deposition of the deducted amount without getting the registration certificate from the particular authority.

ADVANTAGES OF ONLINE REGISTRATION OF PROFESSIONAL TAX IN INDIA

Following are the contemporary factors why one should never miss professional tax:

Professional tax registration online in India is considered as a judicial requirement.  So it is mandatory that all individual should pay it depending on their rates or wages provided by their respective state within the stipulated time, failing or avoiding of which will lead to penalty or legal issues.  This applies also to self-employed individuals and employers.

It is very simple to register as the rules and regulations are very simple to abide as the tax imposes minimal restrictions and is very easy to comply with a monthly or yearly compliances. It is very easy to understand and easy to comply.

Earlier paid professional taxcan be claimed for the deductions.

As a professional tax service, the state’s local tax authority has an obligation to get the professional tax deducted from the fees from the professional, business income and salary.

APPLICATION OF PROFESSIONAL TAX

The following individual classes should pay the professional tax depending on the state where they are working.

·         HUF.

·         Individual.

·         One person Company/Private/Public.

·         Co-operative Society.

·         Body of Individuals.

·         Association of Person.

PAYMENT OF PROFESSIONAL TAX

The self-employed person needs to get the certificate of enrolment from the Tax Department of the respective states.  If in case of employee, it is the responsibility of the employer to deduct professional tax and deposit it to that particular State Government.  The self-employed individual can pay the tax online.  This professional tax is debited at a predetermined slab rate and collected monthly or annually by the Commercial Tax Department of that particular state.

ONLINE REGISTRATION PROCESS OF PROFESSIONAL TAX IN INDIA

·         Obtaining professional tax registration certificate is explained briefly in the following steps:

·         CTD official portal is the onethrough which one can obtain the PTRC registration certificate online.

·         All the necessary documents should also be scanned and sent thorough with the filled in application form.

·         We can also apply Professional tax registration certificate through offline by submitting the application along with the necessary documents and the prescribed fees directly to the concerned State Government

·         Once the application is received, it will be scrutinized for verification by the concerned tax authority.

·         Upon verification and approval, the applicant will be issued the Professional tax registration certificate by Tax authority.

·         If any deviations found in the application, the Tax Department can raise a query, for which the applicant should respond within the stipulated time.

VIOLATION OF PROFESSIONAL TAX REGULATION AND ITS CONSEQUENCES

Penalty will be imposed if any individual fail to file their professional tax return.  The individual is liable for penalty as per the state law for not registering profession tax even after becoming applicable.  The penalty amount for not submitting the professional tax varies from state to state.  Rs. 5 per day will be levied as a penalty for the late registration of professional tax enrollment certificate.  In case of further delay, non/late payment of profession tax, Rs. 10 will be imposed as fine.  The individual has to pay Rs.1000 of penalty and after a month, the penalty will be increased to Rs.2000 if he further delays in filing returns.