Registration Under the Professional Tax Act

• An employer must obtain a Professional Tax Registration Certificate (PTRC) from the concerned state authority.
  
• Registration should be done within 30 days of employing staff liable for professional tax.
  
• Separate registrations are required for each branch if located in different states or municipalities.
  
• Failure to register may attract penalties and legal action.
  
• Employers must ensure that the PTRC remains valid and up to date.
  

Dedication of Taxonom Employees’ Salaries

• Employers are required to deduct professional tax from employees’ monthly salaries as per state-specific slab rates.
  
• The deduction must be made at the time of salary disbursement.
  
• Exempt employees must be identified to avoid wrongful deductions.
  
• Employers must maintain accurate records of salary and deductions.
  
• Deductions must be transparent and shown on the employee’s payslip.
  

Timely Payment of Collected Tax

• Deducted professional tax must be deposited with the state government within the prescribed time, usually by the end of the month.
  
• Delay in payment attracts interest and penalties.
  
• Payment must be made using the PTRC number through the designated online or offline modes.
  
• The payment challan or receipt must be retained for records and audits.
  
• Consistent payment compliance is mandatory to avoid notices and prosecution.
  

Filing of Periodic Returns

• Employers must file monthly, quarterly, or semi-annual returns depending on the number of employees and state rules.
  
• Returns should include employee-wise salary details and tax deductions.
  
• Filing should be completed within the due date after payment of tax.
  
• Returns must be filed even in months where there is no employee tax liability.
  
• Errors in returns must be rectified through proper revision or clarification procedures.
  

Maintenance of Records and Documents

• Employers must maintain records of:
  
  • Salaries paid
    
  • Tax deductions
    
  • Payment challans
    
  • Return filings
    
  • Exemption declarations
    
• These records should be kept for a minimum of 5 to 7 years as required by law.
  
• The records may be inspected by professional tax authorities during audits or assessments.
  
• Proper documentation ensures smooth compliance and avoids disputes.
  

Communication and Compliance Updates

• Employers must stay updated with any changes in slab rates, deadlines, or filing formats issued by the state authorities.
  
• Employees should be informed about tax deductions and slab applicability.
  
• Any change in the business structure, address, or employee strength must be updated in the professional tax records.
  
• Non-compliance may lead to license revocation, penalties, or legal liabilities for the employer.
  
• Engaging a professional or using automated payroll software can aid in consistent compliance.