Profession Tax

In India, the profession tax is imposed at the state level. The following states impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh.

According to section 5 of the Profession Tax Act, every employer (not being an officer of the government) is liable to pay tax and shall obtain a certificate of registration from the prescribed authority.  Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.

The maximum amount payable per year is Rs.2,400/- and in line with your salary, there are predetermined slabs.

The company is required to apply to the state specific  registering authority.

 Depending on the nature of the business, the application should be supported with following documents

  1. address proof,
  2. details of company registration number under Indian Companies Act (1956),
  3. details of head office (if the company is a branch of company registered outside the state),
  4. company deed,
  5. certificates under any other act