Professional tax registration is required for employers and persons engaged in any profession or trade. That entity is required to obtain a registration certificate. The Professional Tax is a source of revenue for the state. Registering a tax, enrolment is now Simple, Affordable & Accessible through Ritedger

Professional tax is a tax which is regulated and imposed by the State government on all salaried people, though, states such as Delhi, UP and Haryana are exempted from this tax. This tax is applicable to all types of working professionals such as chartered accountants, doctors and lawyers. It is imposed depending on the individual’s employment, business or profession. In fact, business owners, freelancers, and so on are also liable to pay this p tax registration once their financial gain increases the pecuniary threshold. The tax rates are not the same in all states, and the maximum amount of tax can be imposed as Professional income tax is Rs.2,500 per year.

Who Pays Professional Tax?
Self-employed individuals who are working on any kind of profession, business and trade will come under the category of pt registration and are legally responsible for paying professional tax to the state government. This tax is collected by the Commercial Taxes Department and the tax slabs differ for each state. The tax is calculated from the annual taxable income of the professionals and it can be paid annually and also as monthly tax. It is mandatory for a self- employed individual to get the certificate of Enrolment from the authorized authority in the specified format.
If a salaried individual or wage earner’s, pay Professional tax is deducted from the salary of the employees every month. An employer cannot make a deposition of the deducted amount without getting the registration certificate from the respective authority.