Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade. It is levied by the state government and must be paid by professionals and employers alike. Hiva Professionals provides expert services for professional tax registration and compliance tailored to your state's laws and requirements.

Professional Tax Applicability

This tax applies to:

• Individuals
• Hindu Undivided Families (HUF)
• Companies, Firms, Co-operative Societies, Associations, or Bodies of Individuals
• Professionals like lawyers, doctors, CAs, teachers, etc.

Applicable and Non-Applicable States

Professional Tax Rate

The maximum annual professional tax payable is INR 2,500. The rates vary by state and are based on the individual’s income slab.

Who Pays Professional Tax?

Employers deduct professional tax from employee wages and deposit it with the state. Self-employed individuals pay it directly and must obtain their own registration certificate.

Employer’s Responsibility

Employers must deduct tax, pay it to the government, and file returns on time, attaching payment proof to avoid penalties.

Exemptions

Certain individuals like disabled persons, senior citizens, and specific workers (e.g., Badli workers) are exempt from paying professional tax.

Registration and Due Dates

• Register within 30 days of employing staff or starting practice.
• Monthly payment: within 15 days of the next month (for more than 20 employees).
• Quarterly payment: within 15 days from the end of the quarter (for less than 20 employees).

Professional Tax Return

Returns must be filed as per the respective state's schedule. Ensure timely submission to avoid penalties.

Benefits of Registration

• Smooth registration process
• Avoid penalties and legal issues
• Legal deduction available for paid tax
• Supports state revenue and development

Documents Required

• Certificate of Incorporation / LLP Agreement
• PAN Card
• MOA and AOA
• Identity/address proofs
• NOC from landlord (if applicable)
• Employee and salary details

Registration Process

1. Submit application and documents to state government.
2. Application is scrutinized by tax authority.
3. P Tax certificate issued upon approval.

Penalties

Failure to register, delay in return filing, or late payments can lead to penalties. For example, in Maharashtra:

• Not registering: Rs. 5/day
• Late return: Rs. 1,000
• Late payment: 1.25% interest + 10% penalty

Why Choose Hiva Professionals?

• Expert Guidance: Navigate professional tax compliance with confidence.
• Seamless Application: We manage documentation and submission for you.
• Timely Updates: Fast, efficient, and prompt processing.
• Custom Support: Solutions tailored to your profession/business.
• Compliance Focused: Stay legally safe and penalty-free.
• Reliable Assistance: Our team is here to support you every step of the way.