State-Specific Late Fee Provisions The late fee for professional tax return filing varies from state to state, as professional tax is governed by individual state legislations. Each state prescribes its own fixed penalty or daily fee for delayed filing of returns....
Cessation of Deduction Obligation Once an employee resigns, the employer is no longer required to deduct professional tax from that individual’s salary. The deduction must continue only up to the last working month. No deduction should be made for months after the...
Identify the Nature of Amendment Required Determine which specific detail needs to be updated, such as: Business name or trade name. Address of business or professional premises. Contact information like mobile number or email ID. Nature of business or professional...
Application Through State Tax Portal Refunds for overpaid professional tax must be initiated by submitting an online application through the official state professional tax portal. The applicant must log in using their PTRC (employer) or PTEC (self-employed)...
Salaried Employees Individuals working in private or government organizations are liable to pay professional tax. The employer is responsible for deducting the tax from salaries and remitting it to the state. This applies to full-time, part-time, contractual, and...
Legal Interpretation Under State Laws Under professional tax laws in India, the term "profession" is defined broadly by each state’s Professional Tax Act. It refers to any vocation, employment, trade, or calling pursued for income. The definition includes both...
Determine the Type of Registration Required Identify whether you need registration as an employer (PTRC) or self-employed professional (PTEC). PTRC is for businesses deducting tax from employees’ salaries. PTEC is for individuals paying tax on their own professional...
Based on Employee Salary Slabs A company's monthly professional tax liability depends on the number of employees and their individual salary levels. Each employee's salary is assessed against the state-specific slab rates to determine the monthly deduction. The...
Selection for Audit by the Tax Authority Employers and professionals may be selected for audit based on criteria such as non-filing, irregular payments, or discrepancies in returns. Some audits are conducted randomly or periodically by the professional tax department....
Gross Salary Professional tax is generally calculated on the gross salary paid to an employee. Gross salary includes all fixed and variable components before deductions. It serves as the base for determining the applicable tax slab. All income paid in cash or kind is...