Benefits of Professional Tax Registration
Imposes Minimal Restriction
- It has minimum restrictions for its compliance. And the process for the same is also easy to comply with.
No Delay
- Professional Tax is regarded as a legal requirement. And thus neglecting the same would impose a fine or prosecution on the taxpayer. To avoid such a situation, the taxpayer i.e. employer and employee pay off their tax on time as per the tax slab rates of their respective states.
Easy Registered
- The professional tax has easy procedures for registration and other follow-ups and proceedings are also easy to be compiled.
Implementing Welfare & Development Programs
- The Professional Tax is revenue for the State Government which helps out with the welfare and development of the state.
Can Get Professional Help
- No one will ever have to deal with all the tax-related issues on their own again. Since there are tax professionals helping you with the tax-related work, thus one will never be alone again when it comes to tax woes.
Can Claim Deduction
- The Employer or the Employee person can claim a deduction for the professional tax which is paid previously.
Procedure for Professional Tax Registration
- The Procedure for the above-mentioned tax registration is different for every state and has different tax slabs. Later upon the requirement of the state, the Professional tax returns need to be filed within the prescribed time period. Professionals/Employer who requires the above-mentioned tax registration shall follow the below steps-
Applying in Offline Mode
- The Professional Tax Registration can be applied via offline mode by submitting the application form with the required documents and prescribed fee to the office of the state government.
Applying in Online Mode
Step-1- Filing the Application Online
- Firstly, the applicant needs to fill out the online application through the CTD portal of the respective state.
Step-2 -Submit Hard Copy
- After filing the application form, the hard copy of the application and the documents attested to it shall be submitted to the concerned department.
Step-3- Examination by the Tax Authority
- Later, on the basis of the application, the tax authority shall closely examine the application and point out such data in the application which is not found correct by the authority.
Step-4- Issuance of Registration Certificate
- After examining, if the authority is satisfied with the application the approval shall be given for the registration and issue the certificate of registration to the applicant.
- But if the examining authority doesn’t find the application correct for registration, in that case, the authority would ask questions regarding it to the applicant which shall be responded to on time.
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Documents required for Professional Tax Registration
For registration of the above-mentioned tax following documents are required to be submitted-
- The online form filed and the hard copy of the same shall be submitted.
- If the applicant is a Company the COI, AOA & MOA, and PAN of the company (Attested by the Director) shall be submitted and as the applicant is the proprietor, the self-attested PAN Card is required to be submitted.
- List of all the Directors with their employees with their Identity proof and address proof and passport size photo.
- The Company’s bank account details with a bank statement and canceled cheque.
- The proof of the Registered Office where the business is run and in the case of rented property-NOC from the owner is required to be submitted.
- Where the applicant is a company-Board Resolution is required to be submitted and In the case of Partnership- the Declaration of consent by the concerned Partner is required to be submitted.
- Salary and attendance register.
Penalties for violation of Professional Tax Regulation
The Professional Tax has its rules and regulation prescribed by the relevant authorities and such must be complying by the applicant. Violation of such facts would impose penalties on the individuals. The states that are collecting Professional tax, impose a penalty for not registering professional tax once it has become applicable and in the case when the individuals default for professional tax. For such default, the authorities have imposed a fine. Although, the penalized amount differs from state to state. Following are some situations where the authority imposes penalties-
1. Fails To Get Registration
The one who fails to get registered shall be liable to a penalty for the period during which the applicant is unregistered.
2. Fails To Pay the prescribed Tax To The Government/ Late Payment
Any individual who fails to deposit the tax shall be liable to pay for the such time the late fee along with the prescribed amount of taxation.
3. Non-Deposition of Amount
In the case where the individual doesn’t deposit the tax amount, the concerned authorities have the power to recover the amount with penalty and interest from the assets of such individual. In other situations, even prosecution could also be filed on the individual. Further, the authorized state government could also impose a penalty on the individual for delayed payment and for failing to file the return on the due date.
4. Few major Penalties are Imposed on the Defaulter
- If the Professional Tax Registration Certificate is obtained after the due time shall incur a penalty of Rs.5 per day.
- Where the applicant has delayed payment or nonpayment of the Professional Tax, will be liable to pay a penalty of 10% of the amount to be paid.
- If the applicant is liable for late filing of returns, he/she shall pay an amount of Rs. 1000. And if the same is continued for a month, the amount would arose to Rs.2000/-.
