Professional Tax

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:

  1. For employees, Employer has to deduct from employee salary and, pay the tax
  2. 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.
  3. 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.
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