PROFESSIONAL TAX Prepared By PAMS Professional Group About Professional Tax Professional Tax Is a state tax, Imposed by a state government on account of the infrastructure it provided to you so that you can carry out your profession in that
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Presentation Transcript
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PROFESSIONAL TAX Prepared By
PAMS Professional Group<br>
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About Professional Tax Professional Tax Is a state tax, Imposed by a state government on account of the infrastructure it provided to you so that you can carry out your profession in that state.
Under Article 276 (2)of the indian constitution, professional tax is deducted by the employer from the salaries of employee every month and remitted to the state, the maximum amount that can be deducted annually under this head is Rs. 2,500
Salaried, self-employed individuals, and companies in Maharashtra are levied with professional taxes on their income from several sources. The Professional Tax slab rates are revised every fiscal year and can be paid online by non-salaried persons. both salaried and self-employed Pay Professional tax. Add a footer 2<br>
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3 Government of india also Deducted professional charges on the income earn from various sources. Professionals working in government or non-government sectors, doctors, lawyers, chartered accountant- they all are responsible for paying professional tax and get a certificate of Certificate of Enrolment from the concerned authority.
Professional tax Classified in Two parts Like- PTRC & PTEC<br>
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4 PTRC
Stands for Professional Tax Registration Certificate
Required for Professional Tax in India
DescriptionA certificate obtained by an employer to deduct and deposit professional tax from employees’ salary.
PurposeTo deduct and deposit professional tax from employees’ salary
Additional documents required for registration PAN and PTEC Details of all the Partners or Directors PTEC
Stands for Professional Tax Enrolment Certificate
Required for Professional Tax in India
DescriptionA certificate obtained by an employer to pay their own professional tax, as well as by professional practitioners such as CAs, Doctors, Advocates, Architects, etc. to pay their own professional tax.
PurposeFor professionals to pay their own professional tax
Additional documents required for registration Details of the number of employees, as well as their salary slabs<br>
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5 Common documents required for registration
Self Attested Copy Of PAN Card & Aadhaar Card
Proof of the Constitution of Business
Proof of the Residence of the Partners, Director & Proprietor
Proof of the Place of Business (Address Proof)
Blank Cancelled Cheque
Shop and Establishment Certificate<br>
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Professional Tax Rate State Wise 6 Professional tax being levied by the State Government, is different in different states. Every state has its own laws and regulations to govern professional tax of that particular state. However, all the states do follow slab system based on the income to levy professional tax.
Article 276 of the Constitution which empowers the State Government to levy professional tax also has provided for a maximum cap of Rs 2,500 beyond which professional tax cannot be charged on any person
Professional Slab rate Different State – (Mansion in Next Slides)<br>
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12 The following is the list of the States and Union Territories where Professional tax is not levied on its people:-
13 Do those who have to pay profession tax fall in certain categories?
Yes, there are certain categories under which those who are liable to pay profession tax fall. These categories include individuals, firms, corporations, Hindu Undivided Families, companies, societies, associations and clubs are liable to pay profession tax.
2) What do you mean by registration certificate and enrolment certificate?
Employers who are liable to subtract and pay profession tax on their employees’ behalf, apart from government officers, are given registration certificates. All persons who are mandated to pay this tax, apart from those whose profession tax is paid by their employers, are given enrolment certificates.
3) Where do I make an application for an enrolment certificate and registration certificate?
The relevant registration authority must be contacted for enrolment certificate or registration certificate, at Vikrikar Bhavan, Mazgaon, in case you reside in Mumbai, or at the closest district Sales Tax office in case you reside outside Mumbai.
4) Are there any penalties for submitting incorrect information?
Under Section 5(6) of the Profession Tax Act, the penalty for providing wrong information when applying for an enrolment certificate or a registration certificate is 3x the actual tax payable.<br>
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14 5) How do professional employees pay tax?
Locate the professional tax website for your state.
Fill the professional tax payment form carefully.
Verify the information and pay professional tax online.
You can also pay this tax at the district sales tax office.
6) Who is exempted professional tax?
Parents of children with permanent disability or mental disability. Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
7) Can we claim refund of professional tax?
Professional tax is paid at the end of month presuming that you have carried out the profession in that month. Therefore once professional tax is paid, there can be no refund. You cannot get your professional tax back. But you can claim deduction of profession tax file filing your salary returns.
8) What is RC no in professional tax?
Every employer liable to Professional Tax on behalf of their employees must obtain Employee Registration - Certificate of Registration (RC) with in thirty days of his becoming liable to pay tax.<br>
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15 9) Is partnership firm liable for professional tax?
Yes, Private limited Companies, One Person Companies, Partners of Limited Liability Partnerships, Partnership firms, and Sole Proprietors apply for profession tax registration immediately upon incorporation. In case of other classes of individuals, the tax is liable to be paid by the person himself.
10) Is professional tax and TDS same?
In this case Income Tax amount deduct when payment made and salary by prescribed Percentage according to income tax. TDS amount is like advanced Tax. Professional tax is collected by state government. You may work in any organization , but practicing your profession you are paying tax to the state government.
11) Why do you have to Pay Professional tax?
It is a direct tax Pay to state Gov. for Maintain infrastructure.<br>
