Professional Tax Filing

Here are the reasons why one should never miss a professional tax payment

Judicial requirement

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.

Avoid paying penalties

Failure to professional tax registration results in huge penalties that keep on increasing over time.

Easy to comply

The professional tax regulations are so easy to follow. The registration procedures can be done quickly and the further proceedings are also much easier.

Deductions

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.

State government tax

The local authorities and the state government have the right to collect all the professional taxes based on employment, professional trades and much more. The collected amount of professional tax per annum should not go beyond ₹2500 per annum.

Professional tax applicability: Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for the deduction of professional tax and payment for the same.

Professional tax for self-employed: Any professional who obtains a monthly regular income will need to pay the professional tax. By the word professional, we mean people employed in specialized fields such as accountancy, media, etc.