Professional tax

It takes 10-15 days to get your PT registration certificate if the application form and documents submitted are error-free

Yes, one needs to register himself under the profession tax act if he conducts his business or profession in Telangana

Employers should register the employee within 30 days from the date of employing him.

The registration number is permanent unless the certificate is cancelled.

The maximum amount of professional tax levied by a state is Rs. 2,500 which is allowed as a deduction from your salary.

There are 2 types of Profession Tax payers (a) Profession Tax Enrolment Certificate (PTEC): Any person engaged in Profession, Trade and Callings and falling under one or the other of the classes mentioned in the second column of Schedule I shall obtained PTEC. (b) Profession Tax Registration Certificate (PTRC): Every employer who has employed even a single employee whose salary is above the prescribed limit for deducting Profession Tax shall obtain PTRC.

Contrary to what the name suggests, profession tax is not just levied on professionals. It is also applicable on employment and trade.

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If the employer fails to obtain the Certificate of Enrolment in time, the same shall attract a penalty of Rs.1,000/- and the yearly taxes that are pending to be paid from the date of commencement of business also has be paid.

If the employer fails to make the payment of tax in time, the same shall attract simple interest at 1.25% for each month or part thereof. In addition to the interest, the professional Tax Officer may impose an additional amount not exceeding fifty per cent of the amount of tax due a penalty as well.

Every business establishment (Employer) liable to pay Professional Tax on annual basis and every employee whose income is Rs.15000 or more is liable to pay professional tax of Rs.200 per month. Tax payable by the employee shall be deducted by his employer from the salary or wage of the employee before making the payment of salary to employee and such employer shall be liable to pay tax to the Government on behalf of all such employees.

Professional tax is imposed only in following States:
Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.