Professional Tax Online Payment: The Easy Way Out

Tax payment is something that everyone is aware of as it happens to be something that everyone is associated with in their daily lives. However, the term, ‘professional tax’ happens to be something that only salaried employers will be able to understand. A better understanding of what professional tax payment is has to be understood.

What is a professional tax?

The word ‘professional tax’ can be used as one of those terms which ideally do not completely show the real meaning of what the term means in the first place. However, unlike the name suggests, it is just not the tax that is put only on professionals, as professional tax online payment is ideally for everyone to understand. Professional tax online payment is on all types of professions, or any kind of trades, and any sort of employment and is put on the basis of the income of the type of profession, trade or employment. Professional tax online payment can be imposed on employees, or any person who is carrying on business which includes freelancers, or any professionals, or others in question, all of who can be subjected to the income which will be exceeding the monetary limit if any exceeds in the first place.

According to Article 246 of the Constitution of India, only the Parliament has the exclusive power to create any laws with reference to the Union List which has the taxes on the salary of the citizens. The state has the complete power to make any laws only with reference to the Concurrent and State list. However, professional tax online payment though happens to be a kind of tax on salary and is given by State Government and it is not to all states in the country who chose to levy professional tax, or any professional tax online payment. The State Government has also got the power to make laws when it comes to professional tax though since it is a tax on salary under Article 276 of the Constitution of India, this also has relation with tax given on professions, or trades, or callings and employment, and professional tax online payment makes it easier to get through.

It should also be considered that the professional tax is an amount which is to be reduced for the need of Income-tax Act, 1961 and can be taken away from taxable salary.

What is professional tax rate?

Professional tax which is given by the State Government, is different from different states. Every state has its own laws and rules while govern professional tax online payment of that particular state. But, all the states also follow a certain system which is based on the salary to incorporate professional tax online payment.

Article 276 of the Constitution which gives the State Government the power to impose professional tax also has given for a maximum amount of Rs 2,500 beyond which professional tax through any mode cannot be charged on anybody.

Who should be responsible to collect and pay professional tax?

Professional tax is taken by the Commercial Tax Department. The commercial tax department of each states collect it which finally reaches the trust of municipality corporation.

People who are responsible to pay professional tax

In case of any employee, an employer is any person who is responsible for deducting and paying professional tax to the State Government which is subject to the monetary limit if any at all is provided by the respective State’s legislations. Also, the employer which can be anything like corporates, partnership firms, or any sole proprietorship, also any other person who is maintaining on any trade or profession is also needed to pay professional tax with regard to his profession which is subject to the monetary limit if any is provided by respective State’s laws. Under such cases, the employer will be needing to register and obtain things like professional tax registration certificates and has to be able to pay professional tax on his profession and professional tax certificate has to be able to minus the tax from his employees and provide. Also, separate registration can be required for all offices that are depending on the respective State’s laws.

What is the way to pay professional tax? Is there any return to be filed?

This also happens to be a State-centric query. However, in regular, a professional tax online payment may be made which is better than offline modes. Also depending on the State’s need for professional tax returns also have to be filed at specific intervals as per the given requirements.

Repercussions of violation of professional tax rules

Although the actual amount of punishments or penal interests can depend on the designated State’s legislation, a punishment may be imposed by all of these states for not registering for professional tax online payment once professional tax legislation can become applicable after registration procedure is completed and the person’s job is brought into light.