PROFESSIONAL TAX REGISTRATION

A professional tax is a tax levied by the State on the Income earned by way of a profession, trade or employment. This form of tax was first levied in India in the year 1949 and the power to levy professional tax had been given to States by way of Clause (2) of Article 276 of the Constitution of India. A Professional tax in India is collected by some states themselves while in several other states which have active Panchayats, local bodies themselves levy this tax. A person who is liable to pay this Tax shall apply for professional tax registration in the prescribed form with prescribed authority.

Any amount paid as Professional Tax to the State Government is allowed as a deduction under Section 16 of the Income-tax Act, 1961, and Income tax on the Balance amount is levied as per the Income Tax Slab Rates in force. In the case of Salaried and Wage-earners, professional tax is liable to be deducted by the Employer from the Salary/Wages and the employer is liable to deposit the same with the state government. In the case of other individuals, this tax is liable to be paid by the person himself. Whether it’s a big organisation or a small organisation the task of registering professional tax can be very difficult, so getting professional help from the experts of Mibook is the best option.

To register professional tax in India, one can get it done by availing sterling and accommodating services of Mibook.
The maximum amount to be paid as professional tax is Rs.2500 however, dependent on the gross income of the professional.

As per the definition professional and income tax are quite similar with the only difference that professional tax is paid to the state government. After registration of professional tax in India, every month the tax amount will be deducted by the employer. And this amount is deducted from the salary of employees under the professional tax section that needs to be deposited to the respective state government.

An individual or employer must submit an application for professional tax registration in Bangalore to the state tax department within 30 days of employment. If a person works in more than one place then registration for professional tax has to be done separately to the authorised department respectively considering the place of business is under which jurisdiction.

In case of failure in payment of tax or there is late payment then there is a penalty of 10 % of tax and a penalty of three hundred rupees is charged. Delay in the deposition of professional tax can result in a penalty of Rs.5/day for all days of delay.
Mibook delivers you well-planned and structured services for the timely professional tax registration Bangalore.