Professional Tax
Professional tax is imposed by the state governments in India on the people who are earning money in the form of salary or through the profession of lawyer, chartered accountant, doctor, company lawyer etc. In India, different states have domestic rates and techniques of tax collection. This professional tax is essentially imposed by the states like West Bengal, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Madhya Pradesh, Maharashtra, Telangana, Meghalaya, Tamil Nadu, Assam, Kerala, Punjab, Karnataka, Odisha, Tripura, Bihar, Gujarat, Jharkhand and Sikkim. This tax is levied by the State Governments under the Department of Commercial Taxes.
Benefits of Professional Tax
- Settlement of outstanding tax debt
- Stopping of a Tax wage garnishment
- Proper Interpretation of Tax Laws
- Audit Compensations
- Untouched credit score
- Protection of Assets and Income
- Protection of Assets and Income
Professional Tax is a source of remuneration for the government. The highest amount expected per year is INR 2,500 and there are predetermined tables. It is even payable by fellow staff engaged in private firms. It is subtracted by the employer from their worker’s salary every month and paid to the state exchequer. It is compulsory to pay professional tax as per the Constitution of India: Article 276. Consequently, the employer company must register with the mandatory agency and get the professional tax enrollment certificate. To know more and penalties regarding the professional tax, talk to our Scayles consultants.