Professional Tax Registration

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  • What is Professional Tax Registration?

    Profession Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors. 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 Rs. 2500 per annum.

  • What You Need To Know

    In Every State


    The business plan is where start-ups showcase their potential for success in an easily understandable presentation that bank executives, private equity investors and others would all understand. If you have employees in more than one state, you would need to get a Profession Tax Registration in each state. Even the rate at which it must be paid will vary. This makes it cumbersome for many small businesses to comply with. Do note, however, that many north Indian states do not levy Profession Tax at all.


    Filing Returns>


    The frequency of return filing depends on the state you're in. For example, in Maharashtra, returns can be filed annually if the liability is under Rs. 5000, quarterly if the liability is under Rs. 20,000 and monthly if it is above Rs. 20,000. However, in West Bengal, returns need only be filed once every year. This is the approach, in fact, many states are moving toward now.


    Penalties Apply


    A penalty of 10% of the amount owed can be imposed in Maharashtra in case of delayed payment of Profession Tax. A delay in obtaining the Enrollment Certificate will be charged at Rs. 2 per day..


  • Profession Tax & Slab Rates around India

    Profession Tax in Maharashtra


    In Maharashtra, profession tax is governed by the Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975. All employees and professionals with a monthly salary of over Rs. 7500 must pay profession tax. Those with a salary of Rs. 7500 to Rs. 10,000 must pay Rs. 175 per month, while those with a higher salary must pay Rs. 200 a month (Rs. 300 in February). Payment of the profession tax that is collected can now be made online.


    Profession Tax in Tamil Nadu


    Profession tax is governed by the Town Panchayats, Municipalities and Municipal Corporation Rules, 1988. The slab rates are as follows: All employees and professionals with a monthly salary of over Rs. 3500 must pay profession tax, starting at just Rs. 16 per month and going up to Rs. 182 per month for those earning over Rs. 12,501..


    Profession Tax in Karnataka


    Profession tax is governed by the Karnataka Tax on Professions, Trade, Callings and Employment Act, 1976. The slab rates are much simpler here, as there is only one rate. If you earn over Rs. 15,000 a month, you must pay Rs. 200 a month as profession tax. If you do not earn Rs. 15,000 a month, you don't pay it at all.


  • Procedure

    5 WORKING DAYS


    Over the first five days, we will ask for in-depth information about your business and competitors. This will begin with broad vision for the company and extend to the finer points of the business, including customer acquisition costs, breakdown of revenues, etc.


    10 WORKING DAYS


    Once we have all the information we need, we will begin framing the business plan. Within 10 working days, we will be able to deliver an end-to-end business plan that will impress any investor or partner you show it to.


    4 WORKING DAYS


    Over the next four days, we will work on any iterations you may wish to make to the business plan.


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