Professional Tax Registration

Professional tax is a state-imposed tax on income generated through a profession, trade, calling, or employment. The tax is calculated using slabs based on the income of individuals who may be self-employed or employed by a company. At the moment, the maximum tax that can be charged is Rs. 2500/-.

Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim are the only states that charge a professional tax.

In the case of self-employed individuals, the tax must be paid by the individual themselves.

In the case of employees, the employer held responsible.

There is a concept of composition scheme in some states. For example, in Maharashtra, the government launched a composition scheme under which everyone obligated to pay the government at the rate of Rs. 2500 can pay a lump sum payment in advance of Rs. 10,000 and his 5-year payment obligation will be cancelled.

^{Every state has its own set of rules and criteria for exemptions. The Karnataka PT Act, for example, exempts some individuals from paying PT. Except for Bangalore and Bangalore Rural District, all charity and philanthropic hospitals or nursing homes located below the Taluk level in all districts of the State. Directors of companies registered in Karnataka who have been nominated by state-owned or controlled financing agencies or other statutory organisations. Foreign technicians working in the state must have their appointments approved by the Indian government in order to be excluded from paying income tax for the period in question (From the date of their joining duty, individuals are exempt for two years.). The Army Act, the Navy Act, and the Air Force Act govern combatants and non-combatant members of the Armed Forces. Blind people who work for a living. Deaf and stupid people who work for a living. Holders of a single taxi or three-wheeled goods vehicle permit. Shorthand or typewriting institutes that teach Kannada or English. A physically impaired individual with a lifelong disability of at least 40% (subject to production of certificate from the HOD of Government Civil Hospital). An ex-serviceman who does not fall under Schedule Sl No. 1. A person with a single kid who has undergone sterilisation surgery must produce a certificate from the District Surgeon of the Government Civil Hospital attesting to the procedure. Personnel of the Central Paramilitary Force (CPMF). Those in charge of educational establishments in their branches who teach classes up to the twelfth grade or pre-university education. Persons who have reached the age of 65 do not have to pay any tax. In addition, no tax is due if you work in a profession for less than 120 days in a year. Our experts will advise you on the clauses’ applicability.}