Professional tax registration is the process of registering a business or individual with the relevant tax authorities to comply with professional tax regulations. Professional tax is a state-level tax in India imposed on salaried employees, professionals (such as doctors, lawyers, and chartered accountants), and business entities. The rules, rates, and registration process vary from state to state.
Steps for Professional Tax Registration:
1) Determine Applicability:
⇒ Check if your state levies professional tax.
⇒ Identify whether you need to register as an employer or an individual professional.
2) Gather Required Documents:
⇒ Common documents required include:
⇒ PAN card of the business/individual
⇒ Address proof of the business
⇒ ID proof of the proprietor/partners/directors
⇒ Employer details (if applicable)
⇒ Salary details of employees
3) Online Registration Process:
⇒ Visit the state tax department’s website.
⇒ Fill out the professional tax registration application form.
⇒ Upload the required documents.
⇒ Submit the application and pay the registration fees (if applicable).
4) Verification & Approval:
⇒ Authorities may review the application and request additional details.
⇒ Once approved, you will receive a Professional Tax Registration Certificate.
5) Compliance & Payment:
⇒ Employers must deduct professional tax from employees’ salaries and remit it to the tax department.
⇒ Payment frequency (monthly, quarterly, or annually) depends on the state regulations.
⇒ File periodic returns as per the state rules.
Documents Required for Professional Tax (PT) Registration
- PAN Card of the business entity.
- Certificate of Incorporation (for companies) or Partnership Deed.
- Identity Proof (Aadhaar, Passport, etc.) of the business owner.
- Proof of Address (Utility Bills, Bank Statement).
- Bank Account Details (for payment of professional tax).
- List of Employees (for businesses with staff)
- Date of Commencement of Profession