Professional Tax Registration Online may be a tax which is regulated and imposed by the government on all salaried people, though, states like Delhi, UP and Haryana are exempted from this tax. This tax is applicable to all types of working professionals such as chartered accountants, doctors and lawyers. It is imposed depending on the individual’s employment, business or profession. In fact, business owners, freelancers, and so on are also liable to pay this professional tax once their financial gain increases the pecuniary threshold. The tax rates are not the same in all states, and the maximum amount of tax can be imposed as Professional tax is Rs.2,500 per year.
Who Pays Professional Tax?
Self-employed individuals who are working in any kind of profession, business and trade will come under the category of professional tax and are legally responsible for paying professional tax to the state government. This tax is collected by the Commercial Taxes Department and therefore the tax slabs differ for every state. The tax is calculated from the annual taxable income of the professionals and it can be paid annually and also as monthly tax. It is mandatory for a self-employed individual to urge the certificate of Enrolment from the authorized authority within the specified format.
If a salaried individual or wage earner’s, Professional tax is deducted from the salary of the workers monthly. An employer cannot make a deposition of the deducted amount without getting the registration certificate from the respective authority.
Professional Tax Applicability
The Professional tax is applicable to the following class of individuals in states where they are working: