Classified as Self-Employed Professionals Commission-based agents are generally considered self-employed individuals under professional tax laws. They earn income through commissions, brokerage, or incentives and are not typically treated as salaried employees. As...
State-Based Tax Liability Professional Tax (PT) for remote employees is determined by the state in which the employee physically works or resides, not where the company’s head office is located. Even if the employer is registered in one state, if the employee works...
Covered Under the Definition of Profession Digital workers, such as freelancers, content creators, developers, designers, online consultants, and influencers, fall under the broad definition of “profession” as per state professional tax laws. Any individual earning...
Loss of Legal Validity Non-renewal of PT registration (in states where periodic renewal is required) results in the registration becoming inactive or invalid. An inactive registration disqualifies the employer or self-employed individual from legally deducting or...
Employee-Related Records Employee master list with names, designations, employee codes, and dates of joining/leaving. Monthly salary registers showing gross salary, PT deduction, and net salary. Attendance records to verify actual working days or salary eligibility....
State-Specific Threshold Criteria The threshold income level for professional tax deduction is not uniform across India. Each state sets its own minimum income limit below which individuals are exempt from PT. This threshold is typically based on monthly gross salary...
No Uniform Implementation Across UTs Professional tax is a state-level tax and not governed by a central statute. Union Territories (UTs) have the discretion to enact or not enact professional tax laws. Not all UTs have implemented professional tax collection for...
Access the State's Professional Tax Portal Visit the official commercial tax or professional tax portal of the respective state. Select the correct service based on your role: PTRC (Professional Tax Registration Certificate) for employers. PTEC (Professional Tax...
Minimum Age Requirement To qualify for exemption, an individual must be a senior citizen, typically defined as 60 years of age or above. The age criterion must be met as per the date of birth recorded in official documents. States may vary slightly, but most follow...
Employee Classification and Eligibility Assessment HR is responsible for identifying employees liable for professional tax based on their salary and location. They must classify employees according to state-specific PT slab rates. Exempt employees (e.g., low-income...