Professional tax is a tax that is imposed by the State government on all salaried individuals. Professional tax is applicable to all working professionals like chartered accountants, lawyers, and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as Professional tax is Rs.2,500 per annum.
Who needs to pay professional tax
- The one who is working as a freelancer without any employee needs to pay professional tax.
- A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax online.
- In the case of other classes of individuals, the tax is liable to be paid by the person himself.
The following individuals are exempted to pay Professional Tax
- Parents of children with a permanent disability or mental disability.
- Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
- Individuals, over 65 years of age.
- An individual suffering from a permanent physical disability (including blindness).
- Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
- Parents or guardians of individuals suffering from mental disability.
- Badli workers in the textile industry
ADVANTAGES
- It Is A Judicial Requirements
- To Avoid Paying Penalties
- Easy To Comply
- Deductions
- The State Government Tax
DOCUMENTS REQUIRED
- Address proof of establishment
- Address proof of partners, proprietor or directors as applicable
- PAN of partners, proprietors and directors as applicable
- Photo of partners, proprietors and directors as applicable
- Salary details of employees
- Financial statements of the establishment
- Certificate of incorporation and address proof in case of company