How is professional tax calculated?

Professional tax calculation is based on an individual’s or business entity’s monthly income and tax slab rates set by respective state governments. However, for an individual, the professional tax must not exceed Rs. 2500 per year in any state.

Which are states and union territories are exempted from paying professional tax?

The states and union territories exempted from professional tax payment responsibility are Arunachal Pradesh, Uttar Pradesh, Himachal Pradesh, Haryana, Rajasthan, Uttarakhand, Goa, Delhi, Chandigarh, Andaman and Nicobar Islands, Lakshadweep, Daman & Diu, and Dadar & Nagar Haveli.

Which are the different types of professional tax certificates?

The two types of professional tax certificates are the Profession Tax Enrolment Certificate (PTEC) and Profession Tax Registration Certificate (PTRC).

What is the time limit to apply for professional tax registration?

In most states, the time limit to apply for professional tax registration is 30 days.

Statutory Compliance Blogs & Legal Updates

Q: What is professional tax?

Professional tax is a statutory obligation where companies, self-employed professionals, business owners, and traders must pay a certain percentage of their income, or a fixed rate set by the respective state government’s commercial tax department.