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Professional tax

The state government levies the professional tax on income from profession or employment. Here are the complete details about professional tax

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Professional tax

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  1. Professional Tax Powered By: www.taxqueries.in

  2. What is Professional Tax? • States Allow Professional Tax in India • Professional Tax Exemptions • Who is responsible for deducting Professional Tax? • Professional Tax Registration • Professional Tax Slab Rates Contents Powered By: www.taxqueries.in

  3. What is Professional Tax? • The state government of India levies the professional tax on income from profession or employment. • The professionals earning an income from salary or anyone carrying out a profession such as a lawyer, Teachers, doctor chartered accountant, etc. are required to pay this professional tax. • The collection methods of is Different for different states in India. • Professional tax is to be paid by every single earning individual in India. The tax calculation and amount collected may vary from one state to another, but it has a limit of Rs. 2500/- per year. Powered By: www.taxqueries.in

  4. States Allow Professional Tax in India • The states which impose the professional tax in India listed below. Business owners, merchants and people carrying out various occupations come under the purview of this tax. • Andhra Pradesh • Karnataka • Madhya Pradesh • Telangana • Tripura • Tamil Nadu • West Bengal • Maharashtra • Chhattisgarh • Kerala • Meghalaya • Odisha, and Sikkim. Powered By: www.taxqueries.in

  5. Professional Tax Exemptions in India • As per the Professional Tax Rules 1975, (Rule 32 ) the following individuals are exempted to pay Professional Tax. • The parents of children with the permanent disability or mental retardation. • Members of the forces as defined in the Army Act, 1950 or the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state. • TheBadli workers in the textile industry. • An Individual suffering from a permanent physical disability (including blindness). • Women exclusively engaged as agent under the Mahila Pradhan KshetriyaBachatYojana or Director of Small Savings. • Parents or guardian of an individual who is suffering from mental retardation. • An Individual, who have completed the age of 65 years, (with effect from 01/04/1995). • The Parents or guardians of a child suffering from a physical disability as specified in clause (C) with effect from 01/10/1996. Powered By: www.taxqueries.in

  6. Who is responsible for deducting Professional Tax? • The employer is responsible for deducting professional tax from the salaries of his employees and paying the amount so collected to the appropriate State government. • An Employer has to furnish a return to the tax department in the prescribed form within the specified time. • The return (which is filed) should include the proof of tax payment. In case the payment proof is not enclosed, the return shall be deemed incomplete or invalid. Powered By: www.taxqueries.in

  7. Professional Tax Registration • Professional Tax is a state level that applies to salaried employees and professionals, including lawyers, chartered accountants, and doctors. In the Following state in India, Profession Tax is applicable in Andhra Pradesh, Assam, Chhattisgarh, Tamil Nadu, Karnataka, West Bengal, Maharashtra, Gujarat, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. Profession Tax Registration is mandatory within 30 days of employing staff in business or, in the case of professionals, 30 days from the start of the practice. Profession tax needs to be deducted from the salary or wages paid; the amount varies by state and amount. • Apply for the Registration Certificate to assesse state’s tax department within 30 days of employing staff for his business. • If the assesse has more than one place of work, then apply separately to each authority as regards the place of work coming under the jurisdiction of that authority. Powered By: www.taxqueries.in

  8. Documents required for Profession Tax Registration • A Copy of PAN Card of the Company. • A Copy of Certificate of Incorporation of Memorandum & Articles of Association. • A Copy of List of Directors of the Company. • A Copy of ID Proof & Address proof of the directors. • A Copy of Board of Directors Resolution. • A Copy of List of Employees (On the letterhead of the company). • An ID Proof & Address proof of Authorized Signatory. • A Copy of Leave & License agreement of the premises. • A Copy of Leave & License agreement of warehouse premises. • A Latest Electricity Bill or Maintenance Bill of the premises. • A Latest Electricity Bill or Maintenance Bill of the warehouse premises. • A Cancelled Cheque (Original). Powered By: www.taxqueries.in

  9. Professional Tax Slab Rates in India • The maximum Professional Tax that can be imposed by any State in India is Rs. 2500/-. • Total amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act. • The profession tax is a source of revenue for the State Governments which helps the different in implementing schemes for the welfare and development of the region. Professional Tax is deducted by the employers from the salary of the salaried employees, and same is deposited with the State Government. • For other individuals, they have to pay directly it to the Government or through the Local Bodies appointed to do so. Let’s check the P Tax Slab fro the financial year 2016-17 in the following sections. • For More Click: Professional Tax Slabs Powered By: www.taxqueries.in

  10. Thank You For More Information visit: http://www.taxqueries.in/income-tax/professional-tax/ Powered By: www.taxqueries.in

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