Professional Tax is levied by state governments on profession and trade and is applicable to salaried employees and even professionals like doctors, lawyers and chartered accounts. The tax is deducted from salary/fees or wages paid.

Professional Tax registration certificate and Professional Tax Enrolment certificate has to be applied and received mandatorily within 30 days of starting practice or employing staff for business.

The states that impose professional tax include Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Gujarat, Assam, Chhattisgarh, Madhya Pradesh, Meghalaya, Orissa, Tripura, West Bengal and Maharashtra. The tax rates vary from state to state. If one has business or branches in more than one state it will be necessary to pay taxes according to the tax rates fixed by such individual states making it a complex process for the business.

The frequency or intervals for filing the tax is as per the rules framed by the respective states. For eg. In West Bengal filing professional tax once every year is accepted.

Details needed for filing professional tax
  • PAN cards/Identity and address proofs of the sole proprietor/partners/directors as applicable and also the individual details of employees need to be furnished (Salary and corresponding tax paid)

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