Professional Tax (PT) applies every business organisation and its salaried professionals and employees. Definition of professional varies from State to State and in Karnataka, Professional means any person who draws Rs.15000 or more as salary, and it includes teachers and trainers, consultants, charted accountants, company secretaries, doctors etc.
Every business must get registered under professional tax as employer and its employees will come under purview of registrations only when they fall within the definition of professionals defined under professional tax Act of each state.
Professional Tax Is deducted at source that is from (salary or wages paid) and professional tax deduction vary throughout various states in India. PT is a slab based tax deduction on the gross income of the professional.
Professional Tax deductions are applicable in these states: Andhra Pradesh, Assam, Chhattisgarh, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Tamil Nadu, Gujarat, Meghalaya, Orissa, Tripura and West Bengal.
Professional Tax registration must be taken for salaried professionals and employees within 30 days of employing them in a business. And for practicing professionals, PT registration is mandated from 30 days from the start of the practice.