Professional tax applies to the following class of persons in states where it is applicable:
- Private/Public/One person Company
- Co-operative Society
- Association of Person
- Body of Individuals
Payment of Professional Tax
Professional tax is paid and collected at a pre-determined slab rate. It is collected either annually or monthly by the Commercial Tax Department of the respective state. Professional tax is paid directly by a self-employed person engaged in profession or trade business while in case of salaried employees, it becomes employers’ responsibility to deduct and deposit such tax to the respective State Government.
In case of a salaried individual, the employer shall deposit such tax every month while a self-employed person has the liberty to pay professional tax either monthly or annually. The self-employed taxpayer shall obtain Certificate of Enrollment from the tax department of the concerned state.