Support 
Professional Tax Registration
Professional Tax- Introduction
It is a direct tax levied on individuals who earn income through practising a profession, trade, or employment, unlike the concept of income tax which the Central Government levies. The different state governments in India levy this form of taxation.
A number of states have imposed this form of tax. Some states charge this tax as a percentage value, while some states charge it as a fixed amount.
Applicability Of Professional Tax Registration In Punjab
Article 276 of the Constitution states that a tax shall be levied and collected on professions, trade, or employment. A person engaged in such profession, trade, etc. and who falls under the classes specified in the second column of the schedule must pay tax to the state government.
Thus, those who start a new business or profession must take the registration.
The tax shall be levied on those persons in the categories specified in the schedule if they are income tax payees. It means that the tax shall be payable only by those individuals whose taxable income exceeds the maximum amount, which is not chargeable to the Income Tax by the tax amount payable by the person under the Punjab State Development Tax Act for that year.
In case a person comes under the ambit of more than one category in the schedule, then such a person shall be required to pay the tax only under a single category.
Specific individuals are not required to pay professional tax. These include senior citizens, persons earning casual wages, and those who rely upon agricultural activity for income.
Thus, these persons are exempted from the liability of paying professional tax.
Professional Tax Registration In Punjab- Self-Employed Persons And Salaried Individuals
The self-employed persons who practice a profession or trade on their own and come within the purview of professional tax are required to pay the tax to the state government.
Self-employed persons are required to obtain a certificate of enrolment from the prescribed authority of the respective state by following the prescribed procedure.
However, in the case of a salaried person, the employer deducts professional tax from the salary of the employee on a monthly basis. The employer is required to obtain a certificate of registration from the concerned authority by following the prescribed procedure. Such an amount is deposited with the state government by the employer.
Documents Required
The following documents will be needed for professional tax registration-
- Copy of PAN;
- Proof of establishment of the business in the form of partnership deed, MOA, AOA, etc.;
- Residence proof of the partners, directors, and proprietors;
- Proof of the business place like electricity bill, rent receipt, etc.;
- Establishment certificate;
- A Cancelled cheque.
Benefits Of Obtaining Professional Tax Registration
The following are the benefits of obtaining this registration-
Be compliant
You can stay compliant with the laws and regulations of the state, which will help you to run your company and business seamlessly.
Avoid hefty fines and penalties.
You can also avoid paying penalties and fines.
Nominal Burden
As the taxes are nominal thus, the burden of payment of tax on the taxpayers is also minimal.
Tax can be a source of revenue for welfare schemes
Such a tax acts as a source of revenue that the state government can utilize. It can fund welfare and development schemes in the respective states.
Returns
Registered taxpayers must assess their tax payments and file a return to the concerned authority. It will outline the person’s gross income every year through their trade or employment.
Every registered employer should make an assessment of the tax and file return in the prescribed form and within such dates as may be prescribed. It should contain the salaries and wages paid by the employer and also the details of the tax deducted in respect of the same.
Such a return should be filed along with proof of tax payment in full that was due.
In the case where the person who is required to file a return observes any omission or any incorrect statement after submission, then such person may furnish a revised return pertaining to the period covered by the return.
Penalties Relating To Professional Tax Registration In Punjab
In case an employer or a person who is required to get such registration or enrolment has failed to apply for the registration certificate without a reasonable cause. The designated officer shall impose a penalty of Rs. 50 for each day of delay. Please note that no penalty can be imposed without providing an opportunity for a hearing for the assessee.
Suppose the employer or the person who has to get the registration has intentionally provided false information in an application. In that case, the designated officer shall impose a fine of Rs. 5000 on such employer or person after providing an opportunity to hear.
Penalty on non-compliance with post-registration requirements
In the case where the registered employer or the person who has been enrolled fails to file a return within a prescribed period, then the designated officer shall impose a fine of Rs. 50 for each day of delay. Please note that here also, no penalty can be imposed without providing an opportunity for a hearing to the assessee.
In the case where the registered employer or the enrolled individual fails to make payment of the tax within the prescribed period without a reasonable cause, then the designed officer shall impose a fine equal to 50% of the tax amount but only after providing a reasonable opportunity of hearing.
In a case where the registered employer or the enrolled individual intentionally fails to maintain the books of account or such other documents, the commissioner may impose a fine of Rs. 50 for each day of delay after providing an opportunity of hearing to such a person.
Conclusion
Professional Tax Registration in Punjab can prove to be a seamless exercise as the complete process is online. The Punjab State Development Tax Act governs the levy of such tax in the state of Punjab. Considering the welfare aspect, the additional revenue generated from professional tax registration helps implement various development schemes in the state. Various state governments levy this tax on individuals in the practice of any profession, including CAs, Doctors, etc.
OUR BLOGS
- How do I make a yearly payment?
-
Serenity Is Multi-Faceted Blockchain Based Ecosystem, Energy Retailer For The People, Focusing On The Promotion Of Sustainable Living, Renewable Energy Production And Smart Energy Grid Utility Services.
- How this technology works?
-
Serenity Is Multi-Faceted Blockchain Based Ecosystem, Energy Retailer For The People, Focusing On The Promotion Of Sustainable Living, Renewable Energy Production And Smart Energy Grid Utility Services.
- What is the comunity benefit?
-
Serenity Is Multi-Faceted Blockchain Based Ecosystem, Energy Retailer For The People, Focusing On The Promotion Of Sustainable Living, Renewable Energy Production And Smart Energy Grid Utility Services.
- What is the comunity benefit?
-
Serenity Is Multi-Faceted Blockchain Based Ecosystem, Energy Retailer For The People, Focusing On The Promotion Of Sustainable Living, Renewable Energy Production And Smart Energy Grid Utility Services.
