Professional Tax Registration – The Benefits of Hiring Experts to Do It

The tax levied by some states in India is called a Professional Tax. It applies to all employees and professionals who earn via any medium. It includes individuals such as doctors, lawyers, and chartered accountants. Pithily put, it is a tax imposed on all trades and professions in the country.

Where is Professional Tax Levied?

Each state has its own laws for Professional tax. They declare their individual slabs and, on its basis, the precise amount is deducted. Some states that levy the tax are:


  1. Kerala
  2. Orissa
  3. Assam
  4. Gujarat
  5. Tripura
  6. Karnataka
  7. Meghalaya
  8. West Bengal
  9. Maharashtra
  10. Madhya Pradesh

While some states and union territories do not ask for any tax, others provide a rebate for it. The refund is given upon lump sum payment of tax for a couple of years


Who is Responsible for Paying Professional Tax?

The employer is responsible for collecting the required tax amount from the monthly pay check of an employee. The company then pays the owed amount to the state government. For individuals who do not work under a private company, the tax is paid by themselves.

Such persons need to apply for tax registration. After registration, a unique number is issued to the person. This number has to be quoted while depositing the tax in banks.

It is worth noting that if the entity or person fails to collect and pay tax, they can be charged with penalties.

How is Professional Tax Paid?

Professional Tax is paid every month. The per month amount remains the same and is calculated by dividing the yearly tax due by 12. February is the one exception because it has a lesser number of days. Therefore, the amount is higher for it.

The precise instalment may alter due to clauses in the law that include sources of income which come under the purview of other sectors and taxes. For example, in a few states, a transport business owner is supposed to pay rupees fifty in a year as the tax for every vehicle owned. But the limit of the tax, per annum, is Rs.1000.

Why Choose to Hire Professionals for Professional Tax Payment?

For many individuals, the thought of filing taxes and paying the correct amount is tedious and painstaking. Professional Tax is not exempt from this feeling. A simple way out is to hire experts who know the ins and out of tax returns. Explained below are some of the most compelling motives to employ specialists for tax payments.


  • The certainty of accuracy.

When people file their own returns, the mistakes that tend to happen are:



  1. Basic math errors
  2. Inversion of numbers
  3. Overlooking the date or the signature

Slips like this can lead to audits. A tax expert, on the other hand, will pay minute attention to every little detail which signifies that there is a higher certainty of accuracy. In other words, tax payment will be free of errors.



  • The option of deductibles.

When an individual utilises tax experts or itemises their deductions, they can subtract a few of those expenses like:



  1. Mileage
  2. Postage
  3. Software
  4. Books on how to file returns
  5. The gaining of time.

The entire process of preparing and filing tax returns includes:



  1. Record keeping
  2. Organising
  3. Filling forms
  4. Submitting Forms
  5. Paying the tax


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