Professional Tax - Registration Services
Professional tax is a state-imposed tax in India on individuals engaged in specific professions, trades, and employment. It is typically deducted from an employee’s salary by the employer and remitted to the respective state government. The professional tax rate varies across states and depends on the profession and income slab. Professionals such as doctors, lawyers, engineers, and chartered accountants are commonly liable to pay professional tax as per state regulations.
There are two main types of professional tax:
- Individual states in India levy this tax on professionals operating within their boundaries. The professional tax rate and amount differ based on the state and the specific occupation. Each state formulates its distinct regulations and guidelines for the assessment and collection of this tax.
- Municipalities or local governing bodies impose this tax on professionals within their area of authority. The tax rate and amount vary depending on the specific municipality and profession. Typically, this tax targets professionals like doctors, engineers, chartered accountants, and attorneys.
- Professional tax primarily funds state and local services like road maintenance, public education, and healthcare infrastructure. Some advantages of professional tax are:
Professional tax is generally levied on individuals involved in specific professions or occupations. The exact professions liable for professional tax can differ based on the state or local governing body. Some prevalent professions that might attract professional tax includes:
