Profession Tax Registration
Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.
The following states impose this tax: Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. This tax needs to be deducted from the salary or wages paid; the amount varies by state and amount, but is capped at 2,500 per annum.
FAQ on Profession Tax Registration:
What is the definition of salary?
- Salary’ includes, in addition to basic salary, dearness allowance, all other remunerations received on regular basis, perquisites and profits in lieu of salary.
What is not included in salary?
- Any form or bonus or gratuities are not included in salary.
Who are required to obtain Certificate of Enrollment?
- Any person liable to pay profession tax is required to obtain Certificate of Enrollment (EC).
How can I know the amount of Profession Tax Payable by me?
- Profession Tax depends upon states. The tax slab are as follows:
What is the stipulated time to pay Profession Tax?
- Profession tax is required to be paid by 31st of July of the same year or which tax is due.