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PT Registration

Professional Tax - Imposed On The Nation

Professional Tax (PT) is a tax imposed by the Municipal Corporations of India in various states. No profession is exempted from paying this tax, however, it is levied based on the income of a particular profession. This tax is collected by the Commercial Tax Departments of all states and sent to the Municipal Corporation. If we talk on a smaller level, the workplace employer is responsible for collecting these taxes from the employees, and it is not just the employees from home tax is collected the employer himself has to pay profession tax too.

Profession tax is very different from income tax. The primary difference is the State Government of India levies that profession tax; meanwhile, income tax is imposed by the central government, and not every individual who earns has to pay income tax. The maximum amount of profession tax that can be charged on an individual is rupees 2500 annually. There are also some states and union territories in India where professional tax is not applicable, for example - Delhi, Uttarakhand, Haryana, Punjab, Goa.

What is PT registration?

Every individual who has a monthly income of more than or equal to 7500 rupees can have a PT registration and pay the profession tax. For that, the employer must have a PT registration done. As mentioned earlier, in all workplaces employee has to collect the profession tax from the employees, and through a chain of people, it is sent to the municipal corporation. However, if an individual is working under more than one employer and has two or more jobs, the employer is not detecting professional tax from his or her wages. The individual is liable to have an enrollment certificate.

There are also plenty of benefits when it comes to PT registration.  Some of them are:

(a)    Be manageable. It allows you to work within the legal boundaries of the nation and keeps your work running smoothly.

(b)   Takes you out of the risk of penalties.

(c)    Nominal payables. The rate of professional tax imposed on all professionals is different because of the salary structure.  Therefore, there is no kind of burden on employers for the employees.

Know About Online PT Registration

The online process of PT registration is straightforward and manageable. Like any other government process, you must go to the official website for online PT registration too. There are some documents which you should have available for the online or offline process. During these times of lockdown, it isn't easy, so people go to the officers to get PT registration done. Hence, it is a very comfortable option to get done online.

What Is The PT Registration Process?

As mentioned earlier, there are some documents which you should have available for your online/offline PT registration process. Listed below are the documents which should be available when it comes to professional tax registration of individuals.

  • Self-attested PAN card of proprietor

  • The bank account of the proprietor with a canceled cheque along with bank statement

  • Passport size photos of the proprietor

  • Driver’s license of proprietor

  • Aadhaar card of proprietor

  • Voter Card of proprietor

  • Some utility bills

  • Attendance and salary registers

  • Authorization letter

  • Address proof of the proprietor

The first step of the procedure of PT registration is to prepare the application and submit it. The next step is the registration of tax; this means that PT registration is provided after submission of the documents and application.

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