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Professional Tax Return Filing

Explore all the details you need about Professional Tax Return Filing, tailored for your needs.

Professional Tax Return Filing is mandatory for individuals and businesses liable to pay Professional Tax. Professional Tax is a tax levied by the State Government on salaried individuals, professionals, or persons engaged in any trade, calling, or employment. In contrast, Professional Tax Return is a document filed with the state government containing details of the Tax paid by the individual or business.

Filing Professional Tax Returns can be a complex and time-consuming process. Solocorp provides Professional Tax Return Filing services to assist clients in fulfilling their tax obligations. Our team of experts at Solocorp ensures that the entire process of PT return filing is completed promptly and hassle-free. We provide end-to-end assistance for PT annual return, from the collection of documents to the submission of the tax return and payment of Professional Tax. Contact us today to avail of our PT return filing service and ensure compliance with the rules and regulations of the state government.

Professional Tax

Professional Tax is a form of direct taxation imposed on individuals who earn an income through employment, profession, calling, or trade, unlike the income tax that the Central Government levies, Professional Tax is imposed by the government of a particular state or union territory in India.

For salaried and wage-earning individuals, the employer is responsible for deducting the professional Tax from the salary or wages and depositing it with the state government. However, in the case of other individuals, they must to pay the professional Tax themselves. The calculation of Tax and the amount collected may differ from one state to another, but there is a maximum limit of Rs. 2500 per year.

Professional Tax Return

A professional Tax Return is a document that must be filed by individuals or businesses liable to pay Professional Tax. It is a form that contains details of the Income earned by the individual or business and the Tax paid during the financial year, applicable for PT annual return. The Professional Tax Return filing is filed with the relevant state government department.

Professional Tax Return Applicability

PT return filing is mandatory for all individuals and businesses liable to pay Professional Tax as per the rules and regulations of the state government. The tax liability and filing frequency may vary from state to state.

For salaried and wage-earning individuals, the employer is responsible for deducting the Professional Tax from the salary or wages and depositing it with the state government. However, in the case of other individuals, they must to pay the Professional Tax themselves and file the return accordingly.

Professional Tax Applicability Across Indian States

  • Professional Tax is a state-level tax, applicable in various states across India. Employers operating in these states are required to deduct professional tax from employees' salaries and remit it to the respective state government.
  • The following states impose professional tax on eligible employees and employers:
  • 1. Andhra Pradesh
  • 2. Assam
  • 3. Bihar
  • 4. Chhattisgarh
  • 5. Gujarat
  • 6. Karnataka
  • 7. Kerala
  • 8. Madhya Pradesh
  • 9. Maharashtra
  • 10. Manipur
  • 11. Meghalaya
  • 12. Mizoram
  • 13. Nagaland
  • 14. Odisha
  • 15. Punjab
  • 16. Rajasthan
  • 17. Tamil Nadu
  • 18. Telangana
  • 19. Tripura
  • 20. Uttar Pradesh
  • 21. West Bengal
  • Employers must ensure timely compliance with professional tax regulations in these states to avoid penalties.

Professional Tax Slab Rate in India

  • Professional Tax is a state-level tax, and the slab rate varies across different states in India. It is determined based on the taxpayer's monthly income and categorized as follows:
  • 1. Monthly Income less than Rs. 15,000: Generally exempt from professional tax.
  • 2. Monthly Income between Rs. 15,001 to Rs. 25,000: Tax rate as per the state's slab (e.g., Rs. 150 per month in some states).
  • 3. Monthly Income above Rs. 25,000: Higher tax rate as per state regulations (e.g., Rs. 200 per month or Rs. 300 in some states).
  • The exact slab rates differ by state and are outlined in each state's Professional Tax Act. Employers and taxpayers must comply with their respective state regulations for accurate tax filing and payment.

Professional Tax Return Filing is a mandatory process for individuals and businesses obligated to pay Professional Tax. This tax is levied by state governments on salaried individuals, professionals, and those engaged in trade, calling, or employment. Filing a Professional Tax Return involves submitting details of the tax paid to the respective state authority.

The responsibility for Professional Tax Return Filing depends on the type of taxpayer:

1. For Salaried Individuals and Wage Earners: Employers deduct Professional Tax from their employees' salaries and wages, deposit it with the state government, and file the returns.

2. For Self-Employed Individuals: Self-employed individuals must pay Professional Tax themselves and file their returns directly with the state government.

3. For Employers Managing Self-Employed Individuals: In certain states, employers are required to file a return for self-employed individuals working under them.

To simplify this complex process, Solocorp offers expert Professional Tax Return Filing services. Our team ensures timely document collection, return preparation, and submission, helping you stay compliant with state regulations. Contact Solocorp today for seamless Professional Tax Return Filing assistance.

PTRC Return Filing: Employer’s Obligations

As per the regulations, it is the responsibility of the business owner to deduct professional Tax from their employees' salaries and remit the collected amount to the relevant government department. Additionally, the employer must file a Professional Tax Return in the prescribed format within the stipulated time frame, providing proof of tax payment. Failure to enclose the payment proof with the return will render the filing incomplete and invalid, and the relevant authorities will take appropriate action.

Exemptions for Professional Tax Filing

  • Under the Professional Tax Rules, certain individuals are exempted from filing Professional Tax Returns. These exemptions aim to provide relief to specific groups, ensuring fair treatment and support. The following individuals qualify for exemptions:
  • 1. Individuals with professional tax liability below the prescribed limit.
  • 2. Parents of children with mental or permanent disabilities.
  • 3. Individuals with permanent physical disabilities, including blindness.
  • 4. Members of the armed forces, as defined in the Army Act of 1950, Air Force Act of 1950, and Navy Act of 1957, including auxiliary or reservist members serving in the state.
  • 5. Badli workers in the textile industry.
  • 6. Parents or guardians of individuals with mental disabilities.
  • 7. Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
  • 8. Individuals above 65 years of age.
  • These exemptions ensure that vulnerable individuals or those with minimal liability are not burdened with tax return filing obligations.

Benefits of Professional Tax Return Filing

1

Avoidance of Penalties and Legal Consequences

Timely filing of Professional Tax Returns ensures compliance with deadlines, helping taxpayers avoid penalties and legal issues.

2

Compliance with Applicable Laws

Filing ensures adherence to Professional Tax laws and regulations, preventing legal complications.

3

Improved Creditworthiness

Maintaining a clean tax record through timely filings can enhance creditworthiness, aiding access to loans and credit facilities.

4

Access to Social Security Benefits

Individuals filing Professional Tax Returns can benefit from government welfare schemes, including medical insurance and pensions.

5

Ease and Convenience

With online platforms, filing Professional Tax Returns has become straightforward and accessible.

6

Increased Government Revenue

Filing returns ensures accurate tax collection, contributing to government revenue and economic development.

Documents Required for Professional Tax Return Filing

The documents required for filing Professional Tax Returns can vary based on state regulations. Below is a list of common documents needed:

Permanent Account Number (PAN) Card

Aadhaar Card

Voter ID or Passport

Bank Account Details

Salary Details or Income Proof

Registration Certificate or Shop and Establishment Certificate

Challans or Payment Receipts

Details of Tax Deducted at Source (TDS)

Other State-Specific Documents

Procedure for Professional Tax Return Filing

Filing Professional Tax Returns involves several steps, which may vary slightly depending on state-specific regulations. Below are the general steps for filing PTRC returns:

1

Step 1: Obtain the Professional Tax Registration Certificate

Ensure you have a valid Professional Tax Registration Certificate issued by the relevant state authority.

2

Step 2: Determine Applicable Slab and Rate

Identify the applicable tax slab and rate based on your income and profession as per the state's Professional Tax Act.

3

Step 3: Collect Necessary Documents

Gather required documents, including salary slips, proof of tax payments, and other relevant materials needed for filing.

4

Step 4: Prepare the Return

Complete the return in the prescribed format provided by your state's tax authority.

5

Step 5: Submit the Return

File the return along with the required documents at the designated office or online portal of the state tax authority.

6

Step 6: Pay the Professional Tax

Make the necessary Professional Tax payment (if due) while submitting the return.

7

Step 7: Obtain Acknowledgment

Secure acknowledgment of the return filing and tax payment for your records.

Penalties for Failing to File Professional Tax Return

Failure to file Professional Tax (PT) returns or pay taxes on time can lead to penalties, late fees, and interest charges. The specifics may vary based on state regulations, but common penalties include:

  • Penalty for Non-Registration

    Businesses failing to register for Professional Tax can incur a penalty of Rs. 5/- per day until registration is obtained.

  • Penalty for Late Filing

    Failure to file the PT return by the due date can attract a penalty of Rs. 1,000/-.

  • Penalty for Late Payment

    Delayed payment of PT dues incurs a penalty of 10% of the outstanding amount.

  • Interest on Late Payment

    Interest is charged at a rate of 1.25% per month on the overdue amount.

It is crucial to file returns and make payments on time to avoid financial and legal repercussions.

Why Choose Solocorp for Professional Tax Return Filing Services?

Solocorp provides comprehensive support for Professional Tax Return (PTR) filing, ensuring compliance with state-specific regulations.

Our expert team handles the entire process, from preparation to submission, to avoid penalties and ensure timely filing.

With our hassle-free services, clients can focus on their business operations while we take care of their PTR requirements.

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