Professional Tax is a tax levied on individuals and entities carrying out a profession by certain specific state governments in India. It is not applicable across all Indian states but is mandatory in the states where it is applicable. However, to pay professional tax, the concerned taxpayer will first have to take Professional Tax Registration. In this video, we have explained every single aspect of Professional Tax registration in India, including its process, eligibility, and documentation. For complete information, make sure you watch the video till the end! What is Professional Tax? Professional Tax is a tax levied by the State Government on individuals and entities who are engaged in any profession, trade, calling, or employment within the jurisdiction of the respective state. It is imposed on the income of such individuals and entities and is calculated based on the income slabs under which they fall. However, the tax rates and slabs may vary from state to state. For professionals employed in full-time salaried jobs, professional tax is usually deducted and collected by their employers and is deposited to the State Government on their behalf. However, for Self-employed, and independently practicing individuals, or for businesses carrying out a specific trade, professional tax has to be paid to the Government directly by the tax assessees themselves. Who is eligible to obtain Professional Tax Registration? Salaried Employees working in the public and private sectors Self-Employed Individuals such as doctors, lawyers, architects, and consultants Business Entities, both for profit and not for profit, such as partnership firms, LLPs, sole proprietorships, private limited companies, trusts, societies, etc Freelancers & contractual employees who are temporarily engaged in any profession, trade, calling or employment and earning an income.

Learn More :