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PROFESSIONAL TAX REGISTRATION

Drawing a regular income in the form of a salary or as professional fees for your services requires paying a professional tax. Every professional has to pay this tax to their respective state governments based on their earnings. Professional tax in India varies from state to state. The maximum amount of professional tax cannot exceed ₹2,500 annually.

 

 

LIABLE FOR PROFESSIONAL TAX:

 

£ In case of salaried employee, the employer deducts professional tax every month based on monthly salary income and pays the same to state government.

 

£ In case of chartered accountant, lawyer, doctor, or any other practicing professional will have to pay professional tax to state government of the place of practice. The amount will vary as per your earnings.

 

 

 

EXEMPTIONS:

 

£ Parents of children with permanent or mental disability,

£ Members of the forces as defined in the Army Act 1950, Air force Act 1950 & Navy Act 1957    including members of auxiliary forces or reservists, serving the state,

£ Badli workers in the textile industry,

£ An individual suffering from a permanent physical disability (including blindness),

£ Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings,

£ Parents or guardians of individuals suffering from mental disability,

£ Individuals, above 65 years of age.

 

 

 

 

 

PENALTY FOR NON-PAYMENT OF PROFESSIONAL TAX:

£ In case of none or late payment of professional tax, penalty will be 10% of the amount of tax.

£ In case of late filing of returns, a penalty of ₹1000 per return will be imposed.



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