PROFESSIONAL TAX RETURN

Professional tax is much more than the tax which is levied only on professionals. This professional tax covers taxes on all kinds of professions, trades, and employment and is levied based on the income of such profession, trade and employment. This tax is based on the income and is a tax which is levied by the State, but it has different rates of interest in various states. For this very same reason, every state has its own laws and regulations which govern the professional tax of that particular state.

The Professional tax is that tax which is levied on the income which is earned by the employees on rendering their services. Each and every professional, the Directors of Company, Designated Partners of the LLP or any other employer maybe of a Company or an LLP, they all are under the obligation for seeking registration. This is deducted from the salary of the employees. This deducted professional tax from the employees has to be deposited and the return has to be deposited and the return of the same has to be filed. 

PROCedure for the Tax Return

In general, a professional tax can be paid either via online or offline. Depending on the State’s requirements, there may be a need to file a professional tax return from time to time or at specific intervals, because it is a State-Specific query.

Consequences of non-filing

Since this comes under the State-specific category, the penalty or penal interest may depend on the respective State’s legislation. After the professional tax becomes applicable it would be levied by all such states for not registering. Furthermore, if the payments are not made on time, i.e within the due date, then also penalty can be levied on the taxes.