Professional Tax Remittance and Returns

Professional Tax is the tax levied by the State Government on the income from employment or profession. In the cases of employment, the employer shall deduct the tax from the salary and deposit the same to the State Government and the employer shall furnish a return to the tax department in the prescribed form in a specified time frame along with proof of tax payment. The other individual professionals shall pay their respective tax directly to the Government as prescribed under the Professional tax rules.

The amount of professional tax deducted / payable by an employee /professional differs from State to State based on the slabs prescribed by respective States under corresponding Professions, Trades, Callings, And Employments Act & Rules.

The professional tax is levied only in certain States; there are some states and union territories wherein this tax is not levied.

For registration the employer / individual professional has to submit some of the following documents as applicable:

• Memorandum Of Association
• Articles Of Association
• PAN Card
• Employer Address Proof and ID Proof and photos
• Board resolution for authorized signatory
• No of directors and Photos and Proof of Residence of the proprietor, Managing Partner, Managing Director, authorized person [Aadhaar]
• No of employees, List of employees with their gross salary
• Registration fees of Rs 2,500 per director
• Bank Details with Cancel Cheque
• Canceled letterhead
• Sale deed / Rental agreement / Lease Deed / No objection certificate in case of Rent Free for "Additional places of Business" (1st & last pages)
• Lease Agreement
• VAT Registration copy
• Any other documents as prescribed under the respective State Act.

The remittance and returns are online in some States and offline in some States.

To know/download the State-wise remittance and return details (Professional Tax Slab Chart), CLICK HERE.

To download respective Forms that have to be filed, CLICK HERE.

To ease out your HR responsibilities CLICK HERE.