Professional Tax Registration

Professional Tax is the tax levied by different state governments of India on the salaried persons working in government or non-government entities or practicing professions like Medicine, Law, Chartered Accountancy etc. or carrying out any other form of business. All these working professionals need to pay the professional tax.

The professional tax registration is imposed at the state level. Different states have different rates and methods of collection. The professional tax is not imposed in all the Indian states. The states in which professional tax is imposed are West Bengal, Tripura, Telangana, Tamil Nadu, Sikkim, Odisha, Meghalaya, Madhya Pradesh, Maharashtra, Kerala, Karnataka, Gujarat, Chhattisgarh, Assam, Andhra Pradesh etc.

The employers deduct the professional tax from the salary of the employees and the same is deposited with the state government. Professional tax is levied by the Municipal Corporation of a particular state and majority of the Indian states impose this tax. For the State Government, the professional tax is an important source of revenue and it helps them in implementing schemes for the welfare and development of the region.

Professional tax registration is also paid by staff of private companies. It is mandatory to pay professional tax. The professional tax is charged as per income slabs of the state government. The amount of professional tax paid during the year is allowed as deduction under the income tax act.

After recruiting the staff in a company, the registration of the professional tax is necessary within 30 days in case of salaried personnel and in case of professionals, it should be within 30 days from the beginning of the practice. The professional tax is deducted from the wages or salaries paid to the employees. The amount deducted for the professional tax registration varies from state to state but it is not more than 2500 rupees annually in any of the Indian states.