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Your professionalism, further affirmed.
As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
Failure to professional tax registration results in huge penalties that keep on increasing over time.
When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.
Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.
Professional tax is a state imposed tax and is imposed on income earned by employees on rendering their services. It is to be filed annually by all the registered employers. The wages/ salary of the employees should be taken into consideration while filing the tax returns
As per the Schedule to the Profession Tax Act, every employer is liable to deduct Profession Tax, from the salary or wages paid to his employees & to pay the Profession Tax so deducted.
The following individuals are exempted from professional tax payment:
Any person liable to pay Profession Tax is required to obtain a Certificate of Enrolment (EC).
A person / employer shall apply within 30 days of becoming liable to pay tax.
Generally, after registration the user-id and password (for filling return electronically) can be obtained from the concerned Profession Tax authority, on production of original RC.
An employer who deducts the tax from the salary of the employee and pays to the government, such entity shall obtain registration certificate while employer if not deduct professional tax then the individual shall get enrolment certificate from necessary authority.
Responsibility to pay and deduct professional tax varies for the following taxpayers:
• Self-employed person: Himself
• Employed person: His employer
In some states, the government has initiated the composition scheme, such as in Maharashtra. In such a scheme for example, if any person liable to pay INR 2500 as professional tax can pay lump sum amount of INR 10000 and will be discharged for professional tax liability for further five years.
