Professional Tax is just like Income Tax except the fact that Income tax is collected by Central Government and Professional tax is collected by the State Government. Professional tax is levied on income of all types of trades, professions & employees. In case of salaried and wage earners, professional tax is liable to be deducted by the employer from his salary or wages and the employer is liable to deposit the same to the state government. In case of traders and professionals, the tax is liable to be paid by themselves. The rate and slabs of professional tax varies from state to state. In some state, professional tax is not levied at all.
Who is required to get Professional tax registration??
As an employer:-
Every employer is responsible for deducting professional tax from the salary of employees and deposit it to state government. For this purpose, every employer is to get “Professional Tax Registration Certificate” (PTRC) from state government within 30 days from the date of liability to deduct and pay professional tax.
As trader or professional:-
Every trader or professional is not only liable to deduct and pay professional tax from salaries of employees but also deposit professional tax on their own income. For this purpose, they are required to obtain “Professional Tax Enrollment Certificate” (PTEC). We may identify following categories of traders & professionals liable for registration:
- Persons like HUF, Firm, LLP, Company, Corporate bodies, societies, club or associations
- Every branch of any person as above is treated as separate person for professional tax registration
- Professionals like advocates, notaries, Medical professionals, CA, CS, CMA, management consultants, architects, insurance agents, contractors, surveyors
- Directors of companies, partner of LLP/Firm
