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Do you earn money from practicing a trade, profession, job, or calling? Get ready to pay professional tax according to state or union territory government guidelines!
At TaxBuddy, we help you pay your taxes on time and comply with the process to avoid penalties.
Why Should You Avoid Professional Tax Violation
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There may be penalties and fines for late professional tax payments or improperly submitted returns.
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Besides fines and penalties, you may have to pay a hefty interest on the delayed tax amount.
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Professional tax violations could result in prosecution and litigation.
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Professional tax offenders may risk losing their privileges and exemptions as professionals.
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Non-compliance could result in complications such as tax notifications, audits, and assessments.
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Reputational damage can lead to a loss of credibility among clients, partners, and stakeholders.
Professional Tax Filing Process
Registration
Employers and self-employed professionals need to register with local authorities for a professional taxpayer certificate. The application process requires them to submit identification, residence, and business verification proof.
Tax Computation
The professional tax amount is determined by using state or union territory rates and slabs. Your income, occupation, and other factors affect the applicable rates. Employers deduct professional tax from the salary or earnings of workers, while self-employed professionals compute it based on income and rates.
Filing of Returns
Employers and self-employed professionals need to register with local authorities for a professional taxpayer certificate. The application process requires them to submit identification, residence, and business verification proof.
Tax Payments
The government must get professional tax payments before the tax due date. Government websites accept payments online using a challan or payment form. Alternatively, you can deposit it offline in person.
Record-keeping
Employers, professionals, and self-employed persons must keep accurate records of professional tax paid or deducted. They must also retain certificates of enrollment, challans, and returns for future reference and compliance.
Why Choose TaxBuddy for Professional Tax Filing
Letting experts at TaxBuddy handle your professional tax filing offers a host of advantages. These include:
Filing Promptly and Accurately
We use cutting-edge algorithms and automation to guarantee the accurate and timely filing of your business tax return. We help you avoid the financial and reputational consequences of non-compliance by reducing the likelihood of errors.
Time and Cost Savings
Through the simplification and acceleration of professional tax return filing, TaxBuddy enables you to save money and time. The services provided by us are more affordable when compared to traditional compliance management techniques.
Compliance Management
The compliance management tools provided by TaxBuddy assist you in staying on top of all the filing, reporting, and payment requirements related to professional taxes. You can be sure we will fulfil all of your compliance requirements.
Expert Support
If you have any questions or concerns about filing your professional tax returns, we can help. Rest assured our tax experts have the expertise to address your questions and guide you through the filing process.
Customized Solutions
We offer specialized services to meet the needs of your business as a whole. We provide you with the exact services you require, regardless of your size of business, to meet your compliance requirements and file your professional tax return on time and correctly.
Data Security
We are committed to protecting your private data at all times. For this, we make use of cutting-edge encryption and security methods. You may trust that TaxBuddy will protect your privacy, which is very important to us.
Tax Buddy Pricing
Professional Tax Rates in Different States of India
Sr. No. | Salary | Professional Tax |
|---|---|---|
1 | Andhra pradesh (Monthly Gross Salary) | |
< Rs. 15000/- | Nil | |
15000/- - 20000/- | 150/- pm | |
20000/- > | 200/-pm | |
2 | Bihar (Annual Salary wise) | |
<300000/- | Nil | |
300000/- - 500000/- | 1000/-pm | |
500000/- - 1000000/- | 2000/-pm | |
1000000/- > | 2500/-pm | |
3 | Kerala (Based on ½ yearly) | |
< 11999/- | Nil | |
12000/- 17999/- | 120/- Half yearly | |
18000/-29999/- | 180/-Half yearly | |
30000/-44999/- | 300/-Half yearly | |
45000/- 59999/- | 450/-Half yearly | |
60000/-74999/- | 600/-Half yearly | |
75000/-99999/- | 750/-Half yearly | |
100000/-124999 | 1000/-Half yearly | |
> 125000 | 1250/-Half yearly | |
4 | Gujrat | |
< 12000/- | Nil | |
>12000/- | 200/-pm | |
5 | Karnataka | |
<14999/- | Nil | |
>15000/- | 200/-pm | |
6 | Maharashtra | |
< 90000/- (Only for Men) | Nil | |
<120000/-(Only for Women) | Nil | |
90000/- -120000/-(For Men) | 175/-pm | |
>120000/-(Both) | 200/- pm( 300 for the March) | |
7 | Telangana | |
180000/- -240000/- | 150/-pm | |
>240000/- | 200/-pm |
Frequently asked questions
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What is professional tax?
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A person who makes money via the practice of a trade, profession, job, or calling is subject to a direct tax known as professional tax. The government of a state or union territory in India imposes a professional tax, as opposed to the Central Government which levies income tax. When it comes to salaried and wage earners, the employer is required to take professional tax from their pay and deposit the money to the state government. For other categories of people, the employee is responsible for paying this tax. There is a maximum tax amount of Rs. 2500/-per year; however, the tax calculation and amount collected may differ between States.
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Who has to pay professional tax?
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The following categories of individuals are subject to professional tax:
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Individuals
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Hindu Unified Families (HUF)
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Whether incorporated or not, a company, firm, cooperative society, association of people, or group of people
Professionals who work for a living, such as lawyers, teachers, doctors, chartered accountants, and others, must pay this tax.
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Who collects professional tax?
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In India, employers are required to deduct professional tax from employees' paychecks and submit the information to the government. Employers are "deductors" who are responsible for gathering professional tax from their employees and submitting it to the government.
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What is the professional tax rate?
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Professional tax payments cannot exceed INR 2,500 annually. Typically, a professional's gross income determines the professional tax slab amount. Every month, it takes it out of his pay. The nodal body responsible for collecting professional tax on the basis of predefined tax slabs, which differ for each state and union territory, is the Commercial Taxes Department. Although it can be paid either annually or monthly, the tax is computed based on the individual's yearly taxable income.
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What are the exemptions for payment of professional tax?
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According to the Professional Tax Regulations, some people are excluded from paying professional tax. The following people are not required to pay professional taxes:
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An individual with a long-term physical impairment, such as blindness
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Parents of children with mental or permanent disabilities
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Individuals serving in the State who are members of the forces as defined by the Army Act, 1950; Air Force Act, 1950; and Navy Act, 1957, including members of auxiliary forces or reservists
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Badli laborers employed in the textile sector
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Women working as directors of small savings or agents for the Mahila Pradhan Kshetriya Bachat Yojana
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People over 65 years
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What are the due dates for professional tax payments?
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An employer must make the payment within 15 days of the end of the month if he employs more than 20 people. Employers with less than twenty workers must, however, make payments on a quarterly basis, which is by the fifteenth of the next month following the end of the quarter.
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What are the documents required for professional tax registration?
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The following documents are required for the professional tax registration process:
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Certificate of Incorporation / LLP Agreement
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PAN Card of Company/LLP/Proprietor/Owner/Director
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Address and identity proof of Proprietor/Owner/Director
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Passport-size photos of Proprietor/Owner/Director
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Details of employees and salaries paid
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MOA and AOA
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NOC from the landlord, where the business is situated
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Additional registrations and licenses
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In which states is professional tax levied?
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Professional tax is imposed only in the following States: Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.