What is Professional Tax?
The tax assessed and collected by Indian state governments is known as the profession tax. A direct tax, that is. This professional tax must be paid by everyone who receives a salary or works as a professional, such as a chartered accountant, company secretary, lawyer, or physician.
Professional Tax Registration and Returns
The owner of a business is responsible for deducting professional tax from the salaries of his employees and paying the amount so collected to the appropriate government department. He/she has to furnish a return to the tax department in the prescribed form within the specified time.
What is the Indian Professional Tax Maximum Limit?
Although the tax is based on the individual’s income, the maximum amount that every State may charge as professional tax is restricted to Rs. 2,500.
Consequences
- Fails to Get Registration
- He will be liable to a penalty for the period during which he remains unregistered.
- Fails to Deposit to the Government/ Late Deposition
- He will be liable to a penalty for the period during which he remains unregistered.
- Non-Deposition of Amount.
- The officials have the power to recover such amount along with applicable penalty and interest from the assets of the such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution cases also can be filed.
