Introduction: It is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any. Professional tax though is a kind of tax on income is levied by State Government (not all states in the country chose to levy professional tax).
Persons liable to pay professional tax:
- For employees, Employer has to deduct from employee salary and, pay the tax
- Employer (corporates, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again.
- Persons who are carrying on freelancing business without any employees are also required to register themselves and pay the tax.
Documents Required for Registration:
- Memorandum of Association
- Articles of Association
- PAN Card.
- Aadhar card
- Lease Agreement
- Employer Address Proof and ID Proof with photos.
- Board resolution for authorized signatory
- The number of directors and the photos and proof of residence of the Proprietor, Managing Partner, Managing Director.
- The number of employees and their details.
- Bank details with a cancelled cheque
- Sale deed / Rental agreement / Lease deed / No objection certificate in the case of rent-free places of business.