Professional Tax Registration
The State Government levies the professional tax. It is necessary for every business within 1 month of business registration or commencement of business.
- Overview
- Benefits
- Documents required
- Process
Professional tax is a tax that is imposed by the State government on all salaried individuals. Professional tax is applicable to all working professionals like chartered accountants, lawyers, and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as Professional tax is Rs.2,500 per annum.
It Is A Judicial Requirements
As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
To Avoid Paying Penalties
Failure to professional tax registration results in huge penalties that keep on increasing over time.
Easy To Comply
When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.
Deductions
Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
The State Government Tax
The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.
ID proof
A self-attested copy of ID proof of Proprietor/ Partner/ Director
Address Proof
Self-attested copy of address proof of Proprietor/ Partner/ Director. Shop and Establishment Certificate(if any )
Photographs
3 copy of passport size photograph of the Proprietor/ Partner/ Director
Incorporation Documents
MoA – AoA of Company, Partnership Deed/ LLP Agreement, etc. along with the registration certificate, if any
Process to Register a Company in India
Day 1 - 2
- Review of documents and information provided
- Application for Digital Signature Certificate
Day 3 - 6
- Checking Name availability
- Drafting of MoA, AoA & other required documents
Day 7 - 9
- Name reservation application under SPICe
- Filing company registration application
- DIN allotment application
- Application for PAN and TAN of company
Day 10 - 12
- Government processing time