Quick Tips about Regulations regarding Professional Tax you want to know!

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Hello Achievers!We are back with the next interesting and equally important topic to strike off from the checklist i.e. “Professional Tax Aka PT“

💰📰 What is Professional Tax? Professional Tax is governed by State Govt. While Income tax is governed by Central Government. The organisation needs to enrol for PETC and PTRC i.e. Professional Tax Enrolment Certificate and Professional Tax Registration Certificate respectively. Levied under article 276(2) of the Indian Constitution. PT is collected on professions, trade, calling and employments carried out using the state’s infrastructure.

For employees: It is employer’s responsibility to deduct PT, failure to do so can make you pay hefty fines. Payable by employees, it gets deducted from salary and remitted to the state govt. Annual PT differs state to state but maximum Rs 2,500 PT is annually deducted. Professional Tax is a non-taxable deduction can be shown as a deduction under Income tax returns. You should note that PT is applicable to the contracted employees as well. Not all states deduct Professional tax in India. The list of states that deduct PT is given below. Maharashtra, Karnataka, West Bengal, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, Gujarat, Odisha.

How to do it?You can register online and submit the documents mentioned below.Documents required for Registration:

1) Acknowledgment of online form submitted.

2) Copy of PAN CARD

3) Residence proof of Partners, Directors/Proprietor

4) Proof of Constitution of Business

5) Address Proof of Business Place

6) Blank Cancelled Cheque

7) Establishment Certificate

8) PAN & PTEC Details.

To know more about Professional Tax for Maharashtra please visit weblink. Similarly, each state has its own registration link online.And remember what Michael John Bobak said “All progress takes place outside the comfort zone.” Enjoy your adventure.

Harshada Narvekar
Chief People Officer @SpiderG

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