The Rights of the Deceased: Moral Rights Incidental to Copyright Law
- Vanshika Agrawal
- 2024-04-25
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.
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5 Enrollment certificate & Registration certificate
6 Enrollment certificate obtained by self-employed persons
7 Responsibility for deducting the tax and depositing the same with Government
8 Costs of registration process
9 Exemption from Professional Tax
A confirmed professional, legally
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.
Failure to professional tax registration results in huge penalties that keep on increasing over time.
When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow and are not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.
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 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.
Different State, different procedure, different slabs
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A professional network
Professional tax is a state imposed tax and is imposed on income earned by employees on rendering their services. It is to be filed annually by all the registered employers. The wages/salary of the employees should be taken into consideration while filing the tax returns.
As per the Schedule to the Professional Tax Act, every employer is liable to deduct Profession Tax, from the salary or wages paid to his employees & to pay the Profession Tax so deducted.
The following individuals exempted from professional tax payment:
Every employer in specific states requires to deduct taxes from salary when paid to one or more employees when payment made exceeds Rs. 5000 (this limit is for Maharashtra) and deposit with the state government. That entity requires to obtain a registration certificate. When a person employed in a profession by two or more employers and is getting salary/wages exceeding Rs. 5000 but employer is not deducting professional tax then the individual needs to get enrolment certificate from authority.
Any person liable to pay Profession Tax requires to obtain a Certificate of Enrolment (EC).
The professional tax imposes only in the following states: Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.
A person/employer shall apply within 30 days of becoming liable to pay tax.
Generally, after registration the user-id and password (for filling return electronically) can be obtained from the concerned Profession Tax authority, on production of original RC.
An employer who deducts the tax from the salary of the employee and pays to the government shall obtain a registration certificate and if not then the individual shall get enrolment certificate from the necessary authority.
In some states, the government has initiated the composition scheme, such as in Maharashtra. In such a scheme for example, if any person liable to pay INR 2500 as professional tax can pay lump sum amount of INR 10000 and will be discharged for professional tax liability for further five years.
The plan price covers all professional fees and convenience charges. Since Professional tax is a state-level tax the applicable govt. charges vary from state to state. Government charges will charge on an actual basis.
Every state has its own governing provisions and exemption criteria. For example, the Karnataka PT act has given an exemption to certain persons from payment of PT. All charitable and philanthropic hospitals or nursing homes situated in places below the Taluk level in all districts of the State except Bangalore and Bangalore Rural District.
Directors of Companies registered in Karnataka and nominated by the financing agencies owned or controlled by the State Government or by other statutory bodies. Foreign technicians employ in the State provide their appointments are approve by the Government of India for the purpose of exemption from payment of income tax for the said period (the exemption is for a period of 2 years from the date of their joining duty).
Combatant and civilian non-combatant members of the Arm Forces govern by the Army Act, the Navy Act, and the Air Force Act. Salaried or wage-earning blind persons. Salaried or wage-earning deaf and dumb persons. Holders of permits of single taxi or single three-wheeler goods vehicle. Institutes teaching Kannada or English Shorthand or Typewriting.
A Physically handicapped person with not less than 40% of permanent disability (subject to production of a certificate from the HOD of Government Civil Hospital). An ex-serviceman not falling under Sl No.1 of the Schedule.
A person having a single child and who has undergone a sterilization operation, subject to the production of a certificate from the District Surgeon, Government Civil Hospital, for having undergone such operation. Central Para Military Force (CPMF) Personnel. Persons running educational institutions in respect of their branches teaching classes up to twelfth standard or pre-University Education. No tax is payable by persons who have attained the age of sixty-five years. Also, no tax is payable for holding any Profession for less than 120 days in the year. Our experts will guide on the applicability of the provisions.
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