Updated on June 19, 2025 02:53:21 PM
Professional tax is defined as the tax which is charged at the state level to those persons who are involved in a number of professions, trades, callings and employment. In Chhattisgarh this tax is regulated by the Chhattisgarh Vritti Kar Adhiniyam 1995 which has provision for levy and collection of tax for urban facilities. The main purpose of professional tax is to mobilize the vital revenue for local bodies and the state government wherein the said amount is spent on basic amenities and infrastructural facilities. For the employers and employees, it is crucial to learn about the intricate step by step way of registration, fees that are payable and possible penalties for noncompliance in professional tax.
While employees have it easier in a way that their employers are obliged to deduct the tax on their behalf and then pay it to the government on their behalf, the self-employed have to register for the tax on their own as well as pay it by themselves. Inability to adhere to these regulations attracts severe penalties and legal repercussions requiring timely and accurate registration and payment. This is useful in order to avoid legal troubles and to ensure that the citizens as well as the companies residing in Chhattisgarh pay their fair share of tax that would contribute towards the state’s development in order for the well-being of the community at large.
Table of Content
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial to several parties involved, especially the employer and the employees since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Chhattisgarh is possible through the official site of Chhattisgarh Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Chhattisgarh:
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Chhattisgarh Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
The professional tax in Chhattisgarh is structured based on income slabs:
Monthly Gross Salary | Amount Payable as Professional Tax |
---|---|
Up to ₹7,500 | Nil |
₹7,501 to ₹10,000 | ₹175 per month |
Above ₹10,000 | ₹200 per month (₹300 for February) |
Note:Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty of 1.25% per month may be imposed for late payments.
Conclusion
The professional tax is stated under Chhattisgarh Vritti Kar Adhiniyam, 1995 and it serves as a key source of revenue for the local bodies as well as the government of Chhattisgarh. This tax is payable for all employees by their employers, who have to deduct it on behalf of the employees and ensure that they remit the same to the relevant authorities, and the self-employed deduct and pay this tax on their own account. It includes filing of certain registration forms and documents through the Chhattisgarh Commercial Taxes Department. The given structure of the taxes is announced in the form of income slabs with some penalties in case of non-compliance. On time registration and payment is very important to avoid legal hassles and promote state development as expected.
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Frequently Asked Questions
To get yourself registered for the professional tax in Chhattisgarh you need to kindly visit the following link showing Chhattisgarh Commercial Taxes Department. Orient yourself with the rules and proceed to fill the forms, submit the necessary documents and complete the online registration.
The documents submitted for the registration include PAN card, Aadhar, proof for business address (which could be electricity bill or rent agreement), and other proofs. They include memorandum and articles of association, partners’ agreement and other records depending on the type of registration company, LLP or partnership or individual.
Delaying the payment of professional tax may attract penalties as provided by the respective state laws. Payments to the firms should be made in time because any delay may attract extra charges and even legal actions.
Profession tax is paid by the employer on behalf of the employee and the amount is then paid as per the legal requirements to the government. In regards to registration and payment, the self-employed persons are on their own.
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