Professional Tax Registration – An Overview
Professional Tax is a tax levied by state governments in India on individuals earning income from salary, profession, trade, or employment. Employers are required to deduct Professional Tax from employees’ salaries and remit it to the state government. Professional Tax Registration is mandatory for businesses and professionals to stay compliant with state tax laws.
Mandatory Compliance:
Businesses and professionals must register to deduct and pay Professional Tax as per their state's regulations.
State-wise Applicability:
Professional Tax is applicable in many Indian states like Maharashtra, Karnataka, West Bengal, Tamil Nadu, and Gujarat.
Avoid Penalties:
Timely registration and payment help avoid interest, fines, and legal actions from tax authorities.
Documents Required for Professional Tax Registration
To successfully register for Professional Tax in India, the following documents are required:
PAN Card of Business Entity
Address Proof of Business (Electricity Bill/Rent Agreement)
Registration Certificate (GST, Shop Act, or Factory License)
List of Employees with Salary Details
Identity & Address Proof of Owner/Partner/Director
Mobile Number and Email ID of Employer
Professional Tax Registration Timeline
The timeline for obtaining Professional Tax Registration is generally 5 to 8 working days, depending on the respective state’s processing time.
Frequently Asked Questions
- What is Professional Tax?
- Is Professional Tax Registration Mandatory?
- Which States in India Levy Professional Tax?