Professional tax is a tax levied by the state government for all salaried individuals. The professional tax applies to all professionals like chartered accountants, lawyers and doctors. It is imposed on the basis of employment, trade or profession of the individual. The tax rates vary from state to state. However, the maximum amount levied for the professional tax is Rs.2,500 per annum.
Online computerization of professional tax and online payment of professional tax facility is available in Tamil Nadu. They can also check the payment status through the website. The Profession Tax assessment and collection is coming under the provision of tax on professions, trades, calling & employments, under the Tamilnadu Municipal Laws Act 1998.
How to pay the professional tax?
Professional tax now comes under the purview of the Goods and Services Tax.
Here a step-by-step guide on how to pay your professional tax online payment:
- Visit your state’s GST website and look for the e-Payment’s tab.
- Select your applicable status under the Statutory order, enter your PAN/TAN number along with the captcha image shown.
- Next, you will see two options (Acts) – The Professional Tax Registration Certificate Act or Professional Tax Enrolment Certificate Act. The PTRC is applicable for a company or employer, and PTEC is the option to be selected by the individuals, sole proprietors, and partnership firms. In either of these, you should select the one that suits you.
- Select the financial year for which the tax has to be paid, the location, the amount as per the slab, your mobile number and then ‘Proceed to Payment”.
- Choose from the credit/debit card or net-banking option to make your payment.
- Download the acknowledgment receipt for your reference.
Professional tax applicability
Professional tax is imposed on all types of trades and professions in India. Every employee working in any private firm operating in India must pay tax. Professional tax registration is the onus of every business owner, who is responsible for deduction of the professional tax and payment for the same.
Professional tax payments will always have unique rates. It differs from state to state. States like Kerala, Karnataka, Madhya Pradesh, Maharashtra, Gujarat, Orissa, West Bengal, Assam, Tripura, and Meghalaya are levying their state taxes.
Any professional who gets a regular income on a monthly basis, must pay the professional tax. Professionals who offer freelance services will have to pay a business tax using a special form. According to the amended Profession Tax Act in Maharashtra, a Limited Liability Partnership and each partner of LLP shall be liable to pay professional tax of INR 2,500 per annum.