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Professional Tax Registration

Professional Tax Registration

Professional TAX Registration in India

Professional tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax. Different states have different rates and methods of collection. In India, not all states impose this tax. The states which impose professional tax are Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.


Procedure to Obtain Professional Tax Registration

1. An application must be made in the Aayaat Niryaat Form 2A (ANF 2A) format to the Regional Authority of the Directorate General of Foreign Trade (DGFT) in the region where the registered office of the company is situated.

2. All the necessary proofs to be submitted online while making application. Signed and stamped physical documents to be submitted at Department for verification.

3. On successful verification of Documents IEC will be issued to applicant.