Overview:-
The separate state governments in India apply the professional tax on earnings from a profession or occupation. All professionals, including those who earn money from salaries or other sources and work as lawyers, teachers, doctors, and chartered accountants, are required to pay professional taxes. Employers are required to deduct professional tax from salaries and wages for salaried and wage employees and deposit the money with the state government. The employee is responsible for paying this tax for individuals who fall into one of the other categories. Although the annual cap is INR 2500, state-by-state changes in tax calculation and the amount collected are conceivable.
Benefits:-
- Legal requirement
- Prevent paying fines.
- Easy to follow.
- Deductions.
- State-level government tax.
Documents Required:-
- Certificate of incorporation, including MOA and AOA/LLP agreement
- PAN card of company/LLP attested by the company director
- Proof of office location with NOC from the owner of the premises
- Proof of company bank account with a bank statement and a cancelled cheque
- Passport size photograph, address and identity proof from all the directors
- Board resolution/ statement of consent by the partners
- Shop and establishment certificate
- Salary register and attendance register.