Step 5 D:- Profession Tax Registration


What is the Profession Tax?

Professional Tax is a State level Tax on Professions or Employment. Profession tax is applicable both on Individuals and organizations (Proprietorship, Partnership, Companies, Hindu Undivided Family, Societies etc.)

Type of PT Registrations

1) Registration of Individual, Professionals, and Companies

Every person doing any business or profession is liable to obtain a Certificate of Enrollment from the Profession Tax Authority. Once this certificate is obtained a person is liable to pay Profession Tax.

2) Registration of PT on behalf of employees

An employer organization is required to get registered and take the profession tax number (PTRC). PTRC gives power to the company to deduct Professional tax from the Employee’s salary and paid it same to the Government.

The rate of Profession Tax and Exemptions

As Profession Tax is a state Govt. tax rate and other provisions change state to state. For example in Maharashtra PT rate are fixed to 2500 per entity except in case of employee drawing salary less than 10000 per month where it  Rs.2000 per year,

To understand the Profession Tax provision of your state contacts us at 8080809061.

Exemptions to Profession Tax: – Certain class of entity and individual are exempt from payment of profession tax. For example in Maharashtra for Sr. Citizen Profession Tax is exempt.

Maximum Profession tax limit:- As per amendment in 1988 PT maximum limit for one entity is fixed to 2500, However many states are perusing Parliament to increase it to Rs 7500,

Keep watching here to get the update

No Double profession tax:- This is a frequently asked question that if a person is working as a salaried person and also running a proprietorship.

Does he need to register at both the places and pay taxes twice?

The answer is No, Provided his employer and his business firm both are located in the same state

Similarly, if a person is a director in more than one company and all those companies are located in a state he needs to pay profession tax once.