Professional Tax (PT)
Professional Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors. Business owners, working individuals, merchants, and people carrying out various occupations come under the purview of this tax.
State in which Professional Tax is applicable:
- Karnataka
- West Bengal
- Andhra Pradesh
- Maharashtra
- Tamil Nadu
- Gujarat
- Assam
- Chhattisgarh
- Kerala
- Meghalaya
- Orissa
- Tripura
- Madhya Pradesh
Professional Tax Deduction Slab:
The maximum amount payable per annum towards professional tax is Rs. 2,500. It is deducted from his/her monthly salary by Employer or from Monthly Income in all other cases. Professional Tax deduction monthly slab varies depending on salary /income range and applicable state.
Professional Tax Payment date:
As Professional tax is deducted, it has to be deposited within the due date. The due date of deposit varies state to state.
Professional Tax Return filing:
Returns to be filed monthly/half-yearly or annually depending on the state of applicability within the due date.
Applicability of Professional Tax in India:
In Which States Apply?
- Karnataka
- West Bengal
- Jharkhand
- Andhra Pradesh
- Maharashtra
- Tamil Nadu
- Gujarat
- Assam
- Chhattisgarh
- Kerala
- Meghalaya
- Orissa
- Tripura
- Madhya Pradesh
To Whom is it Applicable?
- Every self-employed professional
- Any entity employing one or more employees
Type of Person
- Every employer
- Persons acting as Directors of the Companies, the Partner of a firm or designated partner and partners of Limited Liability Partnership (LLP).
- HUF, Firm, Limited Liability Partnership (LLP), Company, Corporations, other Corporate bodies, any societies, Club or Association.
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Professionals including but not limited (state to state varies) to:
- Legal Practitioners including Solicitors and Notaries
- Medical Representatives including Medical Consultants and Dentists
- Doctors
- Chartered Accountants
- Company Secretaries
- Management Consultants
- Architectures
- Engineers
- RCC Consultants
- Tax Consultants
- Insurance Agents
Issuing Authority?
State Government
Is there any Return to be filed?
Yes. Returns to be filed monthly/half-yearly or annually depending on state of applicability within the due date. 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.
Is there any Penalty Applies for Non-Registration or Non-Deposit of Tax?
Yes.
Documents requirement for Professional Tax Registration:
| 1. | PAN Copy of the Entity |
| 2. | Address Proof of the Entity |
| 3. | Address proof of partners, proprietor or directors as applicable (Aadhar/Passport/VoterID/DrivingLicense) |
| 4. | PAN of partners, proprietors and directors |
| 5. | Photo of partners, proprietors and directors |
| 6. | Salary details of employees |
