Professional Tax Registration - Karnataka

Description

Professional tax is a direct tax levied by the state governments in India on the income of individuals from their professions, trades, callings, and employments. It is a tax levied on individuals who are employed by any person, individuals who are engaged in any profession, trade, calling, or employment on their own account, and businesses that employ any person in any profession, trade, calling, or employment.

The rates of professional tax vary from state to state. In most states, the professional tax is levied on a slab basis. This means that the rate of tax increases as the income increases. The maximum amount of professional tax that can be levied is Rs. 2,500 per annum.

Professional tax is deducted from the salary of employees by their employers. Employers are required to pay the professional tax collected from their employees to the state government on a quarterly basis. Individuals who are engaged in any profession, trade, calling, or employment on their own account are required to pay professional tax directly to the state government on a quarterly basis.

Professional Tax Registration is Mandatory in some state and not Having Professional Tax Registration certificate may result of notice and heavy penalties and interest. So any Entity who is starting there own business or profession must should obtain Professional Tax Registration or Professional Tax Enrollment Certificate within 30 day from date of commencement of business. Lets apply for PTEC and PTRC.