Professional Tax Registration

Professional Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors.Professional Tax Registration need be done within 30 days of employing staff for your business. This form of tax is in practice for a long time and States were conferred the power of levelling the Tax under Clause (2) of Article 276.The maximum amount payable per annum towards professional tax is Rs.2,500.

The professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month.The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department. Non-payment of professional tax will result in penalty, 10% of the amount of tax.