SATax Consultancy

Tax Consultant

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All salaried individuals are subject to professional tax, which is enforced by state governments. All working professionals, such as chartered accountants, lawyers, and doctors, are subject to professional tax. It is assessed based on the person’s occupation, trade, or profession. All states have different tax rates, but the highest sum that can be assessed as professional tax is 2,500 dollars per year.

Applicability of professional tax: In India, professional tax is imposed on all types of trades and professions. Every employee of a private company operating in India is required to pay it. Professional tax registration is the responsibility of every business owner, who is also responsible for professional tax deductions and payments.

Professional tax for self-employed: Any self-employed professional who has a regular monthly income is required to pay the professional tax. The term “professional” refers to persons who work in specific professions such as accounting, media, and so on.

Only a few people are free from professional tax restrictions, and the exemptions vary according to whatever state you live in. Individuals who meet the following criteria are free from professional taxation:

Badli employees in the textile industry
Women employed exclusively as agents under the directorate of small savings or Mahila Pradhan
Members of the armed forces
Individuals with permanent physical disabilities
The age varies by state
Badli workers in the textile industry Kshetriya Bachat Yojana (Kshetriya Bachat Yojana) is a government-
Parents or guardians of mentally handicapped people.

Here are some of the reasons why a professional tax payment should never be missed.

• Judicial requirement: Employers in various Indian states are required by the judiciary to get professional tax registration. They must deduct and pay the service taxes of all employees who work under them after they have registered.
• Avoid paying penalties: Failure to register as a professional taxpayer results in significant fines that increase over time.
• Simple to follow: Professional tax standards are simple to follow. The registration procedures can be completed quickly, and the subsequent steps are also simplified.
• Deductions: On the basis of the professional tax paid, deductions can be claimed in the salary. The deductions will be allowed in the calendar year in which the payments were paid.
• State government tax: Local governments and state governments have the authority to collect all professional taxes, including those based on employment, professional trades, and other factors. The amount of professional tax collected each year should not exceed $2500.

• PAN card of the firm/LLP attested by the company director
• Proof of office location with NOC from the property owner
• Proof of corporate bank account with the bank statement and a canceled cheque
• Board resolution/statement of consent by the partners
• Shop and establishment certificate
• Salary register and attendance register from all directors
• Passport size photograph, address, and identity evidence from all directors
• Board resolution/statement of consent by the partners