All types of companies come under the purview of Professional Tax, from Private Limited companies to one-person companies, partners of Limited Liability Partnerships to partnership firms, and even sole proprietors. Never had an issue with calculations or missing any important credits or deductions to the return. Professional Tax in Odisha10. Find a doctor . Use TaxAct's reports and tools to easily provide clients with customized tax planning information. Once the amount is paid under the Scheme, no refund of the amount paid shall be granted under any Circumstances. Similarly, like other taxes, it too has slabs, and all paid employees of an organisation and independent professionals fall under its various categories. Youre guaranteed to love our software or your money back! Every month, all employers registered under . payers on a one-to-one basis to highlight the urgent need to quickly discharge the Professionals apart from salaried employees pay it directly to the government. Produced by Rachelle Bonja , Shannon Lin and Diana Nguyen. Professional tax, unlike income tax, is governed by states rather than the federal government. As per Section 4C, the State Government has been empowered to issue Notification to Notify the person or class of persons (referred to as tax collector), who is eligible to receive any amount towards supply of goods or, as the case may be, supply of services or towards any other purposes, to collect an amount towards tax from an enrolled person or a person, liable to be enrolled. ((navigator.appName == "Microsoft Internet Explorer") && The Commissioner may, either before or after the institution of proceedings for an offence under this Act, permit any person charged with the offence to compound the offence on payment of such sum, not exceeding double the amount of tax to which the offence relates, as the Commissioner may determine. Professional Tax in Bihar8. on refunds for the period commencing on the date next following the last date of the period of assessment to which such order relates and ending on the date of such order or for a period of 18 months, whichever is less. TaxAct installation file names begin with "taXX" etc. Where it comes to the notice of the Commissioner that, any employer has not furnished returns in respect of any period by the prescribed date, the Commissioner may, at any time, before the expiry of the period of eight years from the end of the year to which such period relates, after giving such defaulting employer a reasonable opportunity of being heard in that matter, assess, to the best of his judgment, the tax, if any, due from such employer. flex-wrap: wrap; font-size: 20px; The holder of the certificate of enrollment, shall display conspicuously at his place of work the certificate of enrollment or a copy thereof. Once you have purchased a State edition, the most recent version will always be available through your personal Download Order page. The person liable to pay Profession Tax (other than a person earning salary or wages, in respect of whom the tax is payable by his employer) has to apply within 30 days from date of liability to obtain Enrollment Certificate. Occupiers of Factories as defined in the Factories Act, 1948, who are not covered by Entry 8 above. A practicing professional includes a lawyer, teacher, doctor, chartered accountant, etc. Consequences of violation of professional tax regulation, Parents or guardians of children with a mental disability or permanent disability, An individual suffering from a permanent physical disability including blindness, Members of the forces as defined in the Air Force Act, 1950, the Army Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state, Temporary workers employed in the textile industry, Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana, With RazorpayX Payroll, you, as an employer, can avoid all such consequences. Who is responsible to collect and pay professional tax? See how much you can save using our savings calculator! #CTAbody{ 5 lakh crores. Bookmakers and Trainers licensed by the Royal Western India Turf Club Limited; Self-employed persons in the Motion Picture Industry, Theatre, Orchestra, Television, Modelling or Advertising Industries, as follows: Writers, Lyricists, Directors, Actors and Actresses (excluding Junior Artists), Musicians, Play-back Singers, Cameramen, Recordists, Editors and Still-Photographers. Enter your email address below to subscribe to our newsletter. You trust him or her with your most personal information. Interest for late payment of tax was 1.25% p.m. till 30-04-2017. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. As a result, if you fall into one of the categories listed below, you are exempt from paying professional tax. However, there are few states and union territories in India that do not charge professional tax too. You can also use Windows search to locate the installation file on your computer. Be sure to check our tips for choosing a tax preparerand how to avoid unethical "ghost" return preparers. Stay informed - subscribe to our newsletter. Legal Practitioners including Solicitors and Notaries; Medical Practitioners, including Medical Consultants and Dentists; Technical and Professional Consultants, including Architects, Engineers, R.C.C. Notwithstanding anything contained in this Schedule, where a person is covered by more than one entry of this Schedule, the highest rate of tax specified under any of those entries shall be applicable in his case. Security software can prevent downloads and installation, or prevent the TaxAct program from working properly after installation. Each state can have different salary slab rates for the . text-decoration: none; The commercial tax department of the respective states collects it which ultimately reaches the fund of the municipal corporation. The State Government has issued various Notifications from time to time exempting the whole or part of any late fee payable by class or classes of employers subject to such conditions as prescribed. Person with Intellectual and Development Disabilities (Mental Retardation) specified in the rule 32 and Parents or Guardian of such person. The Tax payable by person earning salary or wages is to be deducted by his employer from the salary or wages payable to him, as per slab rates applicable to them as mentioned in Entry 1 in the Schedule I and shall be paid by employer, irrespective of whether such deduction has been made or not, on behalf of all such persons. [Infographic]. Debt fund taxation change: With no indexation benefit, should you still include debt funds in your investment portfolio? Heres the list of states where PT is applicable along with the tax amount: With RazorpayX Payroll, professional tax payments are also taken care of along with registrations. Section 27A provides for exemptions from payment of profession tax to -, IV. (((navigator.appName == "Netscape") && Description and Brand Names; Before Using; . If you are not completely satisfied, simply return the product for a full refund within 30 days of receipt and you will receive your money back. font-size: 16px; Manage signatures digitally and track your clients responses with real-time updates in the software dashboard. Profession Tax dues. I. Once you have purchased a State edition, the most recent version will always be available through your personal Download Order page. He may revise return based on intimation received, as a result of Business Audit or Search, within 30 days of such intimation. The Statement of objects and Reasons for enacting the law which Accordingly, NotificationNo.PFT-2017/CR-20B/Taxation-3 dated 9-4-17, requires Insurance Companiesregistered under IRDA to deduct Profession Tax as per Entry 1A of Rs.2,500/-per year per person from the commission payable to Chief Agents, Principal Agents, Insurance Agents and Surveyors and Loss Assessors registered or licensed under the Insurance Act, 1938. font-weight: 700; After the installation is complete, you can open the TaxAct program. If the employer has more than one office, then the registration must be obtained for each office depending on the respective state rules. of employer is transferred, Production and inspection Professional Tax calculation is based on a predetermined Professional Tax slab and on the basis of the salary or monthly income levels. An application in Form XVI can be made for revision of any Appeal Order, Revision Order or Determination of Disputed Question Order passed within 60 days from the date of receipt of the order after giving the applicant or the assessee a reasonable opportunity of being heard. Online Products. Levied under Article 276(2) of the Indian Constitution, Professional Tax paymentis deducted by the employer from the salaries of employees every month and remitted to the state; the maximum amount that can be levied annually under this head is Rs 2,500. If you click on the installation file and get an error, this could be because the download is not complete. XVI OF 2019-English : Amendments to the Mah. Where a person is a citizen of India and is in employment of any diplomatic or consular office or trade commissioner of any foreign country situated in any part of the State, such person, if liable to pay tax, shall obtain a certificate of enrolment and pay the tax himself. The tax is deducted from the individuals monthly salary by their employer and is deposited to the state governments. Anyone can be a paid tax return preparer as long as they have an IRS Preparer Tax Identification Number (PTIN). GST System New Functionalities Made Available - FO. color: #fff; The Tax is levied and collected subject to the provisions of Article 276 of the Constitution of India for the benefit of the State. Salary and wage earners. However, each year, some taxpayers are hurt financially because they choose the wrong tax return preparer. goods vehicles other than those covered by (a); iv. Where a person is covered by more than one entry of this Schedule, the highest rate of tax specified under any of those entries shall be applicable in his case. was appended to the Bill No. (Professionals refer to people are in a specialised field, such as medicine (doctors), accountancy (CAs), media (independent journalists), Information Technology etc. Assessed tax shall be paid within 15 days of receipt of the notice of demand. The nomenclature Professional tax could be one of those terms which do not completely convey the real meaning of the term. No order shall be passed after the expiry of three years from the passing of the impugned order and if an order has an adverse effect on an employer or a person, unless a reasonable opportunity of being heard has been given to such employer or person. Interest on late payment of tax by Employer or Enrolled Person. In addition, the employer is required to pay the full amount of tax due on the basis of such return, less any tax already paid, together with a monthly Statement in Form 5A. For instance, the Karnataka state government charges an interest of 1.25% per month for any late tax payments. Professional tax is a state subject. The holder of the certificate of registration shall display conspicuously at his place of work the certificate of registration or a copy thereof. Press Esc to cancel. Scheme, N.S.S. Federal Update Information| The following individuals are exempt from paying professional tax: Any failure to obtain professional tax registration or depositing dues to the concerned authorities might land employers and professionals in trouble. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Unlike, Lets dig further to know the applicability of professional tax, the states where such tax is applicable, and how. . // -->