Registration of Professional                      Tax

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Profession Tax is a direct tax levied by the state government or union territory. Tax which will be levied in the income earned by the person in means of practicing any profession, employment or trade. In reference with provisions mentioned in Article 276 (2) of the Indian Constitution, the right to levy and collect professional tax is bestowed on the State Governments. Not all the states in India levy professional tax.

Professional Taxes are different from income tax but it can be deducted from income tax. It will be applicable to the people who are involved in the professions like doctor, lawyer, engineer, governmental or non- governmental employee individual, company, firm, co- operative society, hindu undivided family, association of person or body corporate.

Advantages on Registration of Professional Tax

Income Tax Deduction

You can deduct your professional tax from the income tax payment. As per the provision under section 16 of the income tax Act, 1995 where the employees can claim for the deduction of professional tax

State Welfare

Revenues collected will be used for the welfare of the state, which helps in bringing implementation of many welfare schemes for the people in that geographical region.

Exempt from penalties

Paying professional tax is a compulsory statute of the state. The professional must be paid on time before the due date. It will help the person to get exempted from the penalties complied in the Income tax Act, 1995.

Avoid loss

In certain cases people face huge losses due to non payment of tax. This payment of professional tax will help you to avoid such unfortunate situations.

Documents required for the Registration of Professional Tax