Is It Mandatory to Register for Professional Tax?

Yes, any professional, the Designated Partners of LLP, the Directors of the Company or any other employer is obligated to register for Professional Tax. Additionally, it is carried out to guarantee that professional tax is taken out of employees’ salaries. Employees’ professional tax deductions must be deposited at the proper office authorized by the state government.

A professional tax return that details the professional tax payment must be filed. Every employer is required to deduct and pay taxes on behalf of their employees. For this purpose, the employer needs to obtain a certificate of registration from a professional tax department within 30 days after the date of liability generated.

What are the documents required for Professional Tax?

Here is a list of some necessary documents for Companies/LLP/Partnership that are required for Professional Tax–

(i) Bank Account

Cancelled Cheque, Proof of Bank Account of Company, and Bank Statement or Bank Account of LLP or Firm as well as Cancelled Cheque and Bank Statement.

(ii) PAN Card

The Director of the Company should attest to the PAN Card of the Company. The Designated Partner of the LLP or any partner of the Partnership firm should authenticate the PAN card of the LLP or Partnership firm.

(iii) Lists

This should include–

• List of all Directors or List of all Partners 
• List of other employees of a company, LLP or Partnership firm

(iv) Certificate of Incorporation

Incorporation Certificate of the Company, including 

• MOA (Memorandum of Association) as well as AOA (Articles of Association) or 
• LLP Agreement or Certificate, or 
• certificate of Partnership firm Registration, or 
• Partnership Deed

(v) Identity Proof

Passport-size photos of all Directors or Partners, Aadhaar cards or any other types of identification proof from each director or partner.

(vi) Register

The Attendance Register of the employees, as well as the Salary Register, are also required.

(vii) Address Proof

Address Proof of the company’s place of business, together with ownership documentation if the applicant owns the property; otherwise, a rent agreement and a (NOC) no objection certificate from the property owner are required. 

Address Verification for LLP/Firms – Ownership documents in the event that the applicant owns the property; otherwise, a rent agreement and (NOC) no objection certificate from the property owner.

(viii) Consent

A Director of the Company approved a Board Resolution allowing professional tax registration. Consent of partners for the application to register for a professional tax certificate.

(ix) Authorization Letter

To obtain a user I.D. and password for the Professional Tax Department requires an authorization letter with the signature of the Partners or Directors.

(x) Other Personal Documents

Personal documents of the directors or partners should include identification proof, such as a PAN card, passport, driving license, voter card, or an Aadhaar card, as well as address proof, such as an electricity bill, phone bill, or other utility bills.

Here is a list of some necessary documents for an individual that are required for Professional Tax–

(i) Self- Attested PAN card of the Proprietor

(ii) Cancelled Cheque, bank statement and Bank Account of the Proprietorship, 

(iii) Passport sized Photos of the Proprietor

(iv) Address Proof of Proprietorship – Ownership papers in case the premises are owned by the applicant/ proprietor; in other cases, rent agreement and NOC (no objection certificate) from the property owner.

(v) Documents of the Proprietor – Identification proof such as Passport, PAN card, Driving Licence, Aadhaar Card, or Voter Card is acceptable, and for Address Proof, Telephone Bills, Electricity Bills, and other utility bills are acceptable.

(vi) Attendance Register and Salary Register 

(vii) Authorization Letter for obtaining a user I.D. and Password of the Professional Tax Department