How To Apply Online For Professional Tax Registration

Are you a professional in India looking to register for professional tax? Check out our step-by-step guide to applying for professional tax registration online!

21 Feb,2023 10:37 IST 2368
How To Apply Online For Professional Tax Registration

A professional tax in India is a direct tax imposed by the state governments in the country. Many might confuse the term to mean that it is a tax only on professionals like doctors or lawyers. However, all professions, trades, and employment are subject to the professional tax.

A professional tax is determined using the income obtained from these professions, trades, or employment, up to a certain income threshold as laid down by the regulations.

The professional tax is levied by the state government and differs since every state has its own slabs that it declares. Therefore, the professional tax is different from one state to another.

Even though, this tax is covered by Article 276 of the Indian Constitution, the state governments have the authority to create laws pertaining to it. Some states may even choose not to impose the professional tax.

The professional tax is collected by the tax department of the state and is then used by the state's municipalities.

Who Collects Professional Tax?

Employers deduct professional tax from employees' monthly salaries. They then pay it to the government; if they don't, penalties for failing to collect or pay the professional tax may be imposed on them.

It may also be noted that in some states, the local government also offers rebates on the taxes if they are paid in one lump sum over a number of years.

A self-employed person is responsible for paying the professional tax himself. They can apply through a form to register for it. An individual will be given a registration number once the form has been received. Under these registration numbers, payments for professional taxes can be made at banks.

Documents Required For Professional Tax Registration

• Application form
• Certificate of Incorporation / LLP Agreement
• The Memorandum of Association (MOA) and Articles of Association (AOA)
• PAN Card of Company/LLP/Proprietor/Owner/Director
• NOC from the landlord, where the business is situated
• Passport size photos of Proprietor/Owner/Director
• Address and identity proof of Proprietor/Owner/Director
• Details of employees and salaries paid
• Additional registrations and licenses

Process For Online Application For Professional Tax Registration

Just as the rates for professional tax vary from each state that imposes the tax, similarly, the online application process, though broadly the same, may differ from each state.

Step 1:

Visit the online portal of the chosen state government for the registration of professional tax.

Step 2:

After entering the personal details of the applicant, the applicant will receive a unique user name and password on the registered mobile and email of the applicant.

Step 3:

The applicant then has to create a self-assessment application and submit it for the purpose of professional tax.

Step 4:

The requisite documents are then to be uploaded along with the application.

Step 5:

Usually, if one goes directly to the state government website and not through a third party, no fees is levied for the application for professional tax.

Step 6:

As soon as the application is submitted, an acknowledgment receipt is created, which is used to file the tax return. A professional tax registration number will also be generated along with the acknowledgement receipt.

Step 7:

After the registration, the applicant can pay the professional tax either online or through the offline mode of payment.

Step 8:

After the professional tax payment, the assesse can download the copy of professional tax assessment from respective state government website.

Step 9:

Following the generation of professional tax assessment, the details of the applicant will be verified by the respective authority.

Step 10:

On completion of the verification, the authority will either confirm the assessment or revise it.

Conclusion

It is critical that each earning person that fits in the prescribed tax bracket, registers oneself to pay professional tax in those states where it is applicable. If not, then they may find themselves in violation of the rules.

Penalty can be imposed for the period the professional taxpayer remained unregistered. Also, one is liable to pay the penalty for the period they did not deposit the tax. Lastly, for non-payment of the professional tax, one will have to pay recurrence of amount along with applicable penalty and interest.

If you are a professional and need personal or business loan you can check the IIFL Finance website. IIFL Finance provides a variety of loans through a simple and hassle-free application process with minimal documentation.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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