Professional Tax
6 Points You Must Know About Professional Tax
1. State-Wise Applicability :
Professional Tax is a state subject. Some states/UT have levied, and others have not levied this tax. The list of states or union territories where this tax is not levied is as follows:
1. Arunachal Pradesh
2. Himachal Pradesh
3. Delhi
4. Haryana
5. Uttar Pradesh
6. Uttarakhand
7. Andaman and Nicobar Islands
8. Daman & Diu
9. Dadra and Nagar Haveli
10. Lakshadweep
11. Jammu & Kashmir
12. Punjab
13. Rajasthan
14. Chandigarh
15. Goa
2. Slab Rate:
The slab rate of the tax varies from state to state. However, it can not exceed Rs. 2500 per year in any state.
3. Timeline For Application:
The time limit for application is 30 days from the date of applicability. Moreover, After the delay, there is a penalty of Rs.5 Per day of delay in Maharashtra. Further, it varies from state to state.
4. Penalty:
There is a penalty for late or non-payment of tax and delay in filing returns. However, this penalty varies from state to state.
5. Return Filing:
The requirement of return filing varies from state to state.
6. Tax Certificate Types:
Followings are the two types of professional tax certificates.
1. The Professional Tax Registration Certificate (PTRC)
2. The Professional Tax Enrolment Certificate (PTEC)
Do you need more clarity ?
ASK A CA
Ask your questions in a Free 30 min. Call( English or Hindi). No strings Attached.
For free call appointment, Please submit the below form and we will contact you ASAP.
Our Working Process
Step#1
You meet with us on a Video/Audio call to clarify the details.
Step #2
We send you a requirement list.
Step #3
We prepare the documents and get your work done.
FAQ`s About Professional Tax
1. What is professional tax?
This tax is levied on persons who carry on any business or profession or are an employee. But in the case of employees, the employer has to collect tax from the employees and pay it to the state government. So, in the case of any employer, they have to make two separate registrations. Further, if any person has business in more than one state, they have to get registered in all states with a branch or office. Moreover, the tax slab may vary from state to state. But it has a maximum limit of INR 2500/- per year.
2. What is a professional tax certificate?
This certificate is the proof of registration with the State Revenue Department.
3. What is the professional tax payment due date?
The tax payment due date depends upon the number of employees employed by the employer. If this number is more than twenty, then the 15th day of the following month is the due date. If the number is 20 or less, then payment must be paid quarterly, and the 15th of the following month from the end of the quarter is the due date.
4. What is a professional tax slab?
The rate of tax differs from state to state. Even in some states, there is no such tax. For the state of Bihar, the slab and rate of tax are as follows:
| Earning in Rs. | Tax Amount(Rs.) |
| Upto 300000 | ₹ 0.00 |
| Between 300001 To 500000 | ₹ 1000.00 |
| Between 500001 To 1000000 | ₹ 2000.00 |
| Above 1000001 | ₹ 2500.00 |
5. What is a professional tax deduction?
The amount of tax paid is deducted from the person’s income for income tax calculation.
6. How to do professional tax online payments?
Firstly, visit https://www.biharcommercialtax.gov.in/bweb/
Secondly, login to the website using your Login id and password
Thirdly, click on make payment>Professional Payment>Fill the challan and > submit.
After that, the page will be directed to the bank website for payment.
Finally, after payment, download the paid challan.
