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Professional Tax Registration in India

Registration with Professional Tax Department is necessary to do the compliance required under state specific Professional Tax Acts. State governments like Maharashtra, Karnataka, Gujarat etc. imposes a tax on every earning person above specific limit on the profession, trading, calling and employment, such a tax is known as Professional Tax. The regular compliance is in form of payment to tax and filing of returns with the PT Department.

Professional Tax Registration in India
 
 
Professional Tax Registration in India
1
Every employer is under an obligation to deduct and pay tax on behalf of employees, for this purpose the employer should obtain the registration certificate from the departmental of professional tax within 30 days from the date of his liability. In case the employer fails to in obtaining the Professional Tax Registration within the time mentioned above then there is a penalty for the same.
2
Persons acting as Directors of the Companies, the Partner of a firm or designated partner and Partners of Limited Liability Partnership (LLP) are also considered as Professionals, who are liable for the payment of Professional Tax at the rates prescribed by respective state governments. Hence, to comply with the provisions of Professional Tax law the Directors and Partners are required to obtain registration under Professional Tax Act, within 30 days of becoming the Director or Partner or DP of an LLP.
3
The persons like HUF, firm, Limited Liability Partnership (LLP), Company, Corporations, other Corporate bodies, any societies, Club or Association is considered as a taxable person under Professional Tax. Or every branch of the above said persons are treated as separate person for the purpose of Registration with the Professional Tax Department and Tax payments.
4
Professionals like Legal Practitioners including Solicitors and Notaries, Medical Representatives including Medical Consultants and Dentists, Doctors, Chartered Accountant, Company Secretaries, Management Consultants, Architectures, Engineers, RCC Consultants, Tax Consultants, Insurance Agents, and Surveyors all kind of Contractors etc. are required to obtain Professional Tax Registration and pay the applicable tax on an annual basis which shall not be more than 2,500/- per annum.
5
There are various other entities which are required to register itself under the Professional Tax laws of respective states in India and to pay the taxes on time and to file appropriate Professional Tax Return.

Following are the state governments which imposes Professional Tax on above-said persons. Hence, the registration has to be obtained in below mentioned states only:

  • 1 Andhra Pradesh
  • 2 Assam
  • 3 Bihar
  • 4 Chhattisgarh
  • 5 Gujarat
  • 6 Karnataka
  • 7 Kerala
  • 8 Madhya Pradesh
  • 9 Maharashtra
  • 10. Manipur
  • 11. Meghalaya
  • 12. Mizoram
  • 13. Orissa
  • 14. Pondicherry
  • 15. Tamil Nadu
  • 16. Tripura
  • 17. West Bengal

Following is list of states and Union territories have does not levy tax on profession,

    Monthly Gross Salary

  • 1. Arunachal Pradesh.
  • 2. Haryana
  • 3. Himachal Pradesh
  • 4. Jammu & Kashmir
  • 5. Punjab
  • 6. Rajasthan
  • 7. Nagaland
  • 8. Uttaranchal
  • 9. Uttar Pradesh

    Monthly Gross Salary

  • 10. Andaman & Nicobar
  • 11. Chandigarh
  • 12. Dadar & Nagar Haveli
  • 13. Daman & Diu
  • 14. Delhi
  • 15. Lakshadweep
  • 16. Puducherry

To put it simply apart from above states mentioned above all the other state government imposes Professional Tax on every single earning person in India in the name of Profession or Trade. The tax calculation an amount to be collected may vary from one state to another. However, it has to be limited to Rs. 2,500/- per year as explained earlier.

Documents required for Professional Tax Registration

For Companies

1
PAN card of Company: PAN card must be attested by the Director of the Company.
2
Certificate of Incorporation of Company.

3
Memorandum and Articles of Association of the company.
4
Premises proof of Company: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
5
Bank Account of Company: Cancelled cheque and bank statement.
6
List of Directors.
7
Passport size Photographs of all Directors.
8
Documents of the Directors: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
9
Aadhar Card of the Company.
10
Board Resolution passed by the Director of the Company authorising Professional Tax Registration.
11
Attendance Register & Salary Register
12
Authorisation Letter for obtaining user I.D. and Password of Professional Tax Department.

For LLP/Partnership

1
PAN card of LLP/Partnership Firm: PAN card must be attested by the Designated Partner of LLP or any partner of Partnership firm.
2
Certificate of Incorporation of LLP or Registration of Partnership.

3
LLP Agreement / Partnership Deed.
4
Premises proof of LLP/Firm: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
5
Bank Account of LLP/Firm: Cancelled cheque and bank statement.
6
List of Partners.
7
Passport size Photographs of all Partners.
8
Documents of the Partner: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
9
Aadhar Card of the Partners.
10
Partners consent for application to register under Professional Tax.
11
Attendance Register & Salary Register.
12
Authorisation Letter for obtaining user I.D. and Password of Professional Tax Department.

For Individual

1
PAN card of Proprietor, self-attested
2
Premises proof of Proprietorship: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.

3
Bank Account of Proprietorship: Cancelled cheque and bank statement.
4
Passport size Photographs of the Proprietor.
5
Documents of the Proprietor: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
6
Aadhar Card of the Proprietor.
7
Attendance Register & Salary Register.
8
Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.

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