Brief Guide on Professional Tax - Get Expert advice from leading Consultants Online
It is mandatory for all the salaried professionals like doctors, lawyers, engineers, and accountants, to file the state-level tax – the professional tax. The State government levies the tax, and it depends on the income of an employee according to all types of trade, employment, and profession. The tax amount subjects to a maximum of Rs 2,500 per annum. However, the taxpayers will be able to claim the professional tax in the IT return.
A number of 50+ professional tax consultants at Sulekha will help you in a hassle-free registration process. By opting for these service providers through Sulekha, one can get assured quality of services, projects delivery on-time, and get connected to the professional business analysts, corporate lawyers, chartered accountants, financial professionals, and more.
Who should register professional tax?
The registration of a professional tax is necessary for every person who is a salaried professional or running a trade by employing staff, etc.., These individuals should register with the State professional tax authority.
In a nutshell, if you run a business with a certain amount of employees, you are required to register the professional tax. Hence, it is important that you hire an expert Professional Tax Consultants in order to have a hassle-free registration process.
Professional tax registration is…
A tax based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with a maximum payable in a year of Rs 2,500. The professional tax can be deducted from taxable income as well as it is the deductible amount for the need of the Income-tax act 1961.
Documents required for professional tax registration
A person who is about to file his professional tax, it is a must to submit certain documents. However, these documents differ according to the company, an individual, and LLP/partnership firms. Let us see them in detail:
- PAN Card of the taxpayer
- Address proof of proprietorship – if the applicant owns the land, the ownership papers should be submitted, and if it is rented, rent agreement and a no-objection certificate from the owner should be submitted.
- Complete bank account details of the proprietorship, including the canceled Cheque and bank statement, should be submitted.
- Passport size photographs that are clicked recently.
- Documents of the proprietor – PAN card, ID proof such as passport, driving license, voter card, aadhar card, and address proof such as electricity bill, telephone bills, and other bills.
- Copies of attendance and salary register should be submitted.
- Authorization letter of obtaining user ID and password of the professional tax department should be provided.
- PAN Card of the company and it must be attested by the head of the company.
- Company’s incorporation certificate.
- Memorandum and Articles of Association.
- Address proof of the company – if the applicant owns the company, ownership papers should be provided. If it is rented, then a rent agreement and no objection certificate should be submitted.
- Complete details of the company’s bank account details like canceled Cheque and bank statements should be submitted.
- List of directors and recently clicked passport-sized photographs.
- The following documents of the directors – PAN card, ID proof such as passport, driving license, voter card, aadhaar card, and address proofs – the electricity bill, telephone bills, and other bills should be submitted.
- Board resolution passed by the director of the company authorizing professional tax registration should be provided.
- Attendance and salary register
- Authorization letter for obtaining user ID and password of the professional tax department should be submitted.
- PAN card of LLP/Partnership firm, and it must be attested by the designated partner of LLP or any partner of the partnership firm.
- Incorporation certificate of LLP or registration of partnership.
- LLP Agreement/partnership deed.
- Address proof of LLP/Firm – If the applicant owns the premises, then the ownership papers should be submitted, and in case if it is rented, a rent agreement and no objection certificate from the owner of the premises should be submitted.
- Complete details of LLP/Firm bank account details like canceled Cheque and bank statements.
- List of partners and recently clicked passport-sized photographs.
- The following documents of the partners – PAN card, ID proof such as passport, driving license, voter card, aadhaar card, and address proofs – the electricity bill, telephone bills, and other bills should be submitted.
- Partners consent for the application to register under the professional tax.
- Attendance and salary register
- Authorization letter for obtaining user ID and password of the professional tax department should be provided.
Features of the professional tax
A professional tax is applicable to all types of professions and trades in India. However, the degree of payment differs based on the state of living. Let us check in detail:
- Under the Company/Firm/LLP, all the corporate bodies, companies, corporations, associations, clubs, etc…, are some of the professional taxpayers.
- Under the individual professionals, the medical representatives, the engineers, accountants, secretaries, architects, tax consultants, surveyors, insurance agents, etc…, are some of the professional taxpayers.
- Under the partners and directors, the partner of a designator and firm, LLP partners, are also considered as professionals. Hence they are required to pay the P tax.
What is the need for professional tax registration?
- In some states, it is the statutory requirement as the employers should obtain the professional tax registration mandatorily. Some also deduct and pay tax depending on the employee’s interest.
- The professional tax registration and the agreement is less complicated. Especially with the help of an experienced tax consultant, it is considered very easy.
- The professional tax amount will not exceed Rs 2,500 per annum. Also, the State government is authorized to collect professional taxes.
- The convenient aspect of this tax is, it is deductible. That is, the taxpayer can claim the deduction from the salary on a professional tax account paid.
- Importantly, professional tax registration should be made in order to avoid penalties.
Process of professional tax return filing
- The applicant should be ready with all the documents as mentioned above. The applicant should also fill in the employee details along with this.
- The employees are required to fill the application form for professional tax and they should be submitted on the mentioned date to the respective departments. It is important to provide the documents in the right order just as required by the approvers. The process will take up to 2 to 3 working days.
- If there are any missing documents or if the documents are found to be produced in the wrong way, then the professional will be alerted about it. After the submission of the missing documents, the process will be completed. After this, the hard copy of the registration will be issued within 10 to 15 days.
How expert tax consultants act as a catalyst in this process?
- The expert tax consultants will fill in the application forms with the necessary details and alert you about the required documents.
- The entire application submission process to the respective departments will be taken care of by the professional tax consultants.
- After the completion of applications and documents submission, the verification process will take place. After the verification is done, the professional tax registration certificate will be provided.
On the whole, the applicants have to be utmost careful while filing the professional tax. It can be effectively done by expert tax consultants. If you are looking for the professional tax consultants’ service, then scroll through the Sulekha’s page and get connected to the professionals.