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Professional Tax Registration in West Bengal- Overview

Professional tax is a tax imposed by the state government of that particular state. Professional tax in West Bengal is a tax that is imposed on the income that is generated by any trade and is paid by the employer. Professional tax is imposable on all working and salaried professionals, such as chartered accountants, lawyers, and doctors. It is imposed based on the individual’s employment, trade or profession. The tax rates vary across all states, however, the maximum amount that can be imposed as professional tax is ₹2,500 per year.

The professional tax is just like the income tax but the professional tax in West Bengal is administered by the state government. In this article, we shall discuss the various aspects of Professional Tax Registration.

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Eligibility of Professional Tax Registration

Professional tax in West Bengal is levied on the individuals and the entities that are mentioned below:

Companies, Firms, Limited Liability Partnerships, Corporations, societies, Hindu undivided families, associations, clubs, legal practitioners, contractors, architects, engineers, tax consultants, management professionals, Chartered accountants, lawyers, medical representatives such as doctors, professors.

Professional Tax Exemption

The professional tax provisions provide exemptions for a few individuals; the exemptions vary based on the state one belongs to. Following are some of the exemptions guven under the rule:

  • Parents of children who are suffering from mental or physical permanent disability
  • Members of the army
  • The age varies state wise
  • Badli workmen engaged in the textile industry
  • Women involved exclusively as an agent under the directorate of small savings or Mahila Pradhan Kshetriya Bachat Yojana
  • Guardians or parents of mentally challenged individuals.

Benefits of Professional Tax Registration

Here are some of the advantages of Professional Tax Registration.

Judicial obligation: Employers in many states of India are obligated by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and remit the service taxes of all the employees who work under them.

Penalty avoidance: If one doesn't get the professional tax registration it may result in huge penalties that keep on increasing over time.

Easy compliance: The professional tax regulations have easy compliances. The registration procedure is simple and quick and the processing time is also fast.

Tax Deductions: Deductions in the salary can be claimed on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer paid it.

Minimum State government tax: The local authorities and the state government are authorized to collect all the professional taxes imposed on individuals engaged in employment, profession trades and much more. The collected amount of professional tax per annum is limited to ₹2500 per annum.

Documents Required for Professional Tax Registration

Following are the documents required for Professional Tax Registration

  • Certificate of incorporation
  • MOA and AOA, LLP agreement
  • PAN card of company
  • LLP attested by the company director
  • Proof of company /business location along with NOC from the owner of the premises
  • Bank account statement and a canceled cheque
  • Passport size photograph
  • Address and identity proof of all the directors
  • Board resolution/ statement of consent of the partners
  • Shop and establishment registration certificate
  • Salary and attendance register

Why choose Tax Seva Kendra - Professional Tax Registration online

We at Tax Seva Kendra are available 24x7 to assist in every matter concerning tax and related services. Here's how we can help you with online professional tax registration:

  • Our professional tax experts will conduct a proper assessment of the business and prepare a document for tax application with the government of the respective state.
  • We take care of all the documentation and filing of the same.
  • Hassle free and quick registration process at affordable rates.

FAQ on Professional Tax Registration

What is the difference between a professional tax and income tax?

Income tax is a direct tax charged and collected by the central government from all taxpayers. It is charged on a certain percentage of their income based on the tax slabs. Whereas, professional tax is an indirect tax imposed and collected by the state government. It is charged based on a slab for individuals engaged in business, trade, occupation, or employment or any profession.

What is the slab prescribed for professional tax?

Basically, each Indian state prescribes its slab for professional tax. For example: In Maharashtra, if your monthly income is between ₹7,500 to ₹10,000, then the professional tax levied is ₹175. Similarly, for monthly incomes above ₹10,001, the tax levied is ₹200 for 11 months and ₹300 on the 12th month. If the monthly salary is less than ₹7500, there is no professional tax levied.

Who is liable to pay professional tax in West Bengal?

An individual involved in any trade or business activity or any profession, occupation or employment has to pay professional tax in West Bengal.

How is the professional tax computed in West Bengal?

The professional tax rate in West Bengal is calculated on the basis of salary slabs. The maximum amount that can be levied as professional tax is Rs. 2500 annually.

Is it compulsory to pay professional tax?

Professional tax should be paid by every individual otherwise there are penalties for non-compliance.

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