Penalties Related To Professional Tax Registration

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When professional tax policy becomes applicable, all such jurisdictions may impose a penalty for failure to register Profession Tax. However, the precise amount of the Penalty will depend on state regulatory law.

There are also penalties for failing to submit the PT return by the deadline and withholding payments after they are due. Each state’s professional tax regulations determine the actual fine. Businesses that fail to register professional tax, pay taxes late, or file returns on time may face fines, late fees, or imprisonment.

Failure to make a payment by the due date and failure to file a return by the due date carries additional penalties. For example, the following information outlines the penalty amount imposed by the Maharashtra Government for late filing or failure to pay Professional Tax in Maharashtra.

Nature of default	Penalty Leviable
Not obtaining PT registration	Rs.5/- per day
Late filing of PT return	Rs.1,000/-
Late payment of PT dues	Interest @1.25% p.m. Penalty @10%

For example, professional tax of Rs.1 Lakh is delayed by 12 months, then the simple interest payable is Rs.1,250/- and a Penalty of Rs.10,000. Total= Rs.11,250

Maximum Penalty for delay in payment of Rs.1 Lakh for a year and return filing also delayed = 12250

Seamless Professional Tax Registration Services with IndiaFilings

IndiaFilings can assist you in simplifying the process of obtaining a Professional Tax Registration Certificate in India. Here’s how our services can benefit you:

Expert Guidance: IndiaFilings provides expert guidance on the Tax Registration process for professionals. Our team is well-versed in the nuances of tax regulations and can ensure that your registration complies with the latest rules.
Application Submission: IndiaFilings will handle submitting your Tax Registration application to the relevant authorities on your behalf. This ensures accuracy and compliance with all legal requirements.
Timely Processing: With IndiaFilings’ professional handling, you can expect timely processing of your application, reducing waiting times and allowing you to obtain your P tax certificate promptly.
Customized Support: IndiaFilings understands that each business and profession has unique requirements. We offer personalized support tailored to your needs, ensuring your registration aligns perfectly with your professional status.
Compliance Assurance: Staying updated with ever-changing tax laws and regulations is crucial. IndiaFilings pays attention to the details, ensuring that your registration complies with all necessary tax laws and guidelines.
Customer Support: Should you have any questions or concerns during the registration process, IndiaFilings’ customer support team is readily available to address your queries and provide timely assistance.

By choosing IndiaFilings to meet your Professional Tax obligations, you can confidently simplify the process and navigate the complexities of tax regulations.

File Your Professional Taxes Efficiently with IndiaFilings!

Documents Required For Professional Tax Registration

Incorporation Certificate

Professional Tax Registration FAQ’s

What is Professional Tax Registration?

Professional tax registration is a mandatory process for employers and individuals engaged in various professions, trades, or employment in India. It involves registering with state authorities to comply with local tax regulations.

What is a Professional Tax Certificate?

There are two main types of professional tax certificates: Professional Tax Enrollment Certificate which is for business owners and professionals. And, the Professional Tax Registration Certificate, which is for employers who deduct professional tax from employees’ salaries.

Is it mandatory to pay professional tax?

Professional Tax is a mandatory tax paid by every individual, and there are penalties in case of non-compliance.

Why is professional tax different in every state?

The Professional Tax Rules vary from state to state. As the rules vary from state to state, each state can set limits and rates. But the maximum amount limit has been developed to Rs.2500 per year. The salary slab structures for levying Professional Tax differ from state to state.

What is a professional tax and when is it levied?

The professional Tax is a state-level tax imposed on the income earned through profession, trade, calling, or employment. The Tax is based on the slab dependent on the payment of the individual who may be self-employed or working as an employee of an entity.

Is professional tax imposed in each state?

The professional Tax is imposed in the following states:

Andhra Pradesh
Assam
Bihar
Gujarat
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Pondicherry
Punjab
Sikkim
Tamil Nadu
Telangana
Tripura
West Bengal

Who deducts the tax and deposits the same with the government?

In the case of self-employed individuals, the Tax has to be paid by the individual. In the case of individuals, the liability of deducting the Tax is on the employer

How to Get a Professional Tax Certificate?

Below, we have given the process of how to get professional tax certificate:

Determine Liability: Check if your profession or business requires professional tax registration in your state.
Gather Documents: Collect necessary documents like PAN card, address proof, and salary details for a quick professional tax registration process.
Submit Application: Apply online or at the state tax department with the required documents.
Verification: Wait for the tax authorities to verify your application.
Receive Certificate: Obtain the professional tax registration certificate after approval.

Who is assessed under the Professional Tax Act?

The employer must pay the professional Tax assessed under the profession tax act.

What is the penalty for violating Professional Tax regulations?

The penalties for not registering for Professional Tax or not paying the same within the due date every month vary as per the State in the country again. However, generally, for non-registration, a penalty of Rs. 5 per day is levied. If you pay after the due date, you are charged 10% extra on the professional tax amount as a penalty.

Who is required to obtain a Certificate of Registration (RC)?

Every employer liable to pay Profession Tax on behalf of his employees, for whom he pays salary/ wages within the taxable limit, is responsible for obtaining a Certificate of Registration.

Is their Professional Tax in Union Territories?

No, if you are from a Union Territory of India, you do not need to pay any Professional Tax. This is because the income level in a Union Territory is lower than in any state.

Who are exempt from Professional Tax in India?

There are exemptions for specific individuals to pay Professional Tax under the Professional Tax Rules. The following individuals are exempted from paying Professional Tax:

Parents of children with permanent disability or mental disability
Members of the forces as defined in the Army Act of 1950, the Air Force Act of 1950, and the Navy Act, of 1957, including members of auxiliary forces or reservists serving in the State.
Badli workers in the textile industry
An individual suffering from a permanent physical disability (including blindness)
Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
Parents or guardians of individuals who have a mental disability.
Individuals above 65 years of age

What is the maximum amount of professional Tax levied by a state?

Rs 2500 are the maximum amount of professional Tax that any state can levy.

What is the due date for payment of professional Tax?

If the entity has enrolled before 31st May, the due date for payment is 30th June. In case of enrolments made after 31st May, the due date for payment is 30 days before the enrolment date.

How is professional tax calculated?

In India, Professional Tax is calculated on Salary slabs. Under minimum salary, there is no tax. The maximum amount paid as Professional Tax is Rs.2500 per year. The tax slabs differ from state to state.

How much professional tax is deducted from my salary?

Professional Tax appears at the top of the salary slip as it is deducted before calculating income tax. The employer deducts the employee’s salary and deposits it with the State Government.

Who has to pay professional tax in India?

Every person engaged actively or otherwise in any profession, trade, callings, or employment and falls fewer than one or the other class mentioned in the second column of the Schedule I appended to the profession tax act is liable to pay the professional Tax.

How to Get a Professional Tax Number?

Apply for Registration: Submit your application for professional tax registration online or offline.
Provide Required Documents: Ensure all necessary documents are uploaded or submitted.
Verification Process: Wait for the verification by the tax authorities.
Receive PTIN: Upon approval, you will be issued a unique Tax Payer Identification Number (PTIN), which serves as your professional tax number.

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