Taxation is considered a source of revenue for the Indian government. Professional taxation is another type of levy imposed on all salaried individuals. Every state has enacted the necessary laws, rules, and regulations. It has been imposed on all professions, trades, and occupations based on income. To acquire a registration certificate and pay Professional Tax, a taxpayer must comprehend how to download the PTRC Challan.
In this blog, we will learn about the Professional Tax Registration Certificate (PTRC) and the step-by-step procedure for how to download the PTRC challan.
What Is Professional Tax?
Professional tax is a direct tax charged by the Indian state government on persons generating money via the practice of a profession, such as a lawyer, company secretary, chartered accountant, doctor, technology expert, and more. The tax is imposed on paid professionals and also on Non-Government Institution employees. It is comparable to income tax. The distinction between the two occurs as the state government charges the Professional tax and the Central Government levies income tax. It is fixed at Rs. 2500 per year.
Professional Tax Registration and Returns
PTR is required within 30 days of hiring employees in a business or, in the case of professionals, within 30 days of beginning practice. Professional tax must be deducted from the amount of pay or earnings paid. After 30 days of hiring employees for his firm, the assessor’s state tax department should receive an application for the Registration Certificate. If the employee has more than one workplace, an application should be filed with each authority individually for the place of work within its competence.
If an employer hires more than 20 people, he must make the payment within 15 days after the end of the month. But if an employer has no more than 20 employees, he must pay quarterly (that is, by the 15th of the following month from the end of the quarter).
Difference between PTEC and PTRC
Usually, both the PTEC and the PTRC certificates are required for running the business. The process to apply for both certificates is also almost the same, but it varies from state to state. The main differences between PTEC and PTRC are discussed below.
- PTEC stands for Professional Tax Enrollment Certificate, and PTRC stands for Professional Tax Registration Certificate.
- PTEC is the amount employees pay to the state government by themselves in the form of tax. PTRC is the amount deducted from employees’ salaries.
- Whether it is a company or an individual, the tax deduction amount for PTEC is INR 2500 per annum. The tax deduction amount for PTRC is between INR 150 and INR 200 per month.
- PTEC registration is required for someone who starts their own business or company. Whereas the employer registers themselves with PTRC for deducting money from the employee’s salary if the company has two or more employees.
How to Make PTRC Payment Online?
Follow the easy steps outlined here to pay your state professional tax online.
Step 1: When accessing the website, select the e-payment option.
Step 2: Log in to the portal with your TIN number, then select e-payment.
Step 3: After you log in, MTR Form No. 6 will display. It will include all of your details and TIN by default.
Step 4: Next, specify the electronic payment type, the month, the amount, and the place where you are registered. You cannot change any information after it has been entered, so fill it all out accurately.
Step 5: If the system does not enable periodicity, pick either a monthly or annual payment plan based on your tax due for the preceding year.
Step 6: Use Form ID ‘VIII’ when initiating a PT payment on behalf of the employees. If you don’t associate, pick the “Other” option and then the relevant statement from the drop-down option.
Step 7: After filling out the entire form correctly, click on Submit. The authentic government request number will be issued promptly. You may select “Pay” to complete the transaction for settling your professional taxes.
Step 8: Save the invoice that pops up after a successful transaction.
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How to Download the PTRC Challan Online?
Follow the easy steps outlined here on how to download the PTRC challan online:
- The taxpayer must choose the PTRC Period from the drop-down option. If the system includes that information for the specified fiscal year, the period will be shown in keeping with the dealer’s periodicity.
- If the platform does not enable periodicity, the following options will be displayed: monthly, quarterly, six-monthly, and annual. Choose annual or monthly payments based on your tax liability for the previous year.
- After selecting the period, the taxpayer must input the PTRC amount.
- Select a location and input your mobile phone number.
- Select the option “Proceed for Payment” after giving the vital information.
- Upon successful payment, the system will direct the user to the web portal of the State Goods and Services Tax Department. Different cyber receipts will be issued for the PTRC.
- Taxpayers can save electronic payment receipts. If the receipt is not issued or you cannot do so instantly, the taxpayer can obtain it afterward.
- To obtain the challans for the e-payment, the customer must go to the state website. After logging in, select the payment method for e-services, VAT, and Associated Acts.
- After opting for the pending transaction history alternative, hit Act.
- After opting for the submitted alternative, all payments initiated will be presented.
- If the challan is delayed or blank, the “Get Condition” button will display in front of the Status column.
- By clicking “Get Status,” the user may obtain the current status. Following that, the “View Challan” option will take the place of the “Get Status” button. The taxpayer’s desktop “See Challan” option will enable them to get an electronic receipt.
What is a Professional Tax Registration Certificate?
Before downloading the PTRC challan, let us comprehend the Professional Tax Registration Certificate.
A Professional Tax Registration Certificate (PTRC) is necessary for the business serving as the employer. When an employee’s monthly salary exceeds Rs. 7500, the employer must pay professional tax on the salary paid to the employee.
Businesses with directors must apply for a professional tax identification number. Suppose a director is working full-time or is a managing director. In that case, the organisation considers that director to be an employee, and the firm must withdraw Rs. 200 each month from each director’s income and pay that tax at the required intervals. The directors do not need to get a different PT enrollment number.
Benefits of Professional Tax Registration
The following are the advantages of Professional Tax Registration:
- Minimum Limitation Imposed
Compliance with Professional Tax Compliance is easy, resulting in a seamless registration procedure with few constraints.
- Help in the Avoidance of Penalty
According to the legislation, it is mandatory to pay Professional tax. Thus, the prompt payment of Professional tax can assist in avoiding penalties and other disciplinary measures against the employer or a self-employed person.
- Allows for a Simple Registration Procedure
Professional tax compliance is straightforward, allowing for an easy and trouble-free registration process.
- Contributes to the Successful Implementation of Development and Welfare Programs
The Professional Tax is a revenue source for state governments, allowing them to execute various programs for the region’s welfare and development.
- Claim Deduction
The employer or self-employed individual may seek a deduction for tax paid.
FAQs on PTRC Challan
Following are the frequently asked questions and answers on the PTRC Challan.
How can I get a professional tax-paid challan?
To get the challans for the e-payment, the user must visit the state website. After logging in, select the payment option for e-services, VAT, and Associated Acts. After choosing the pending transaction history option, click on the Act option.
Who is responsible for taking Professional Tax?
The employer is responsible for taking professional tax from his personnel’s salary and repaying the collected amount to the authorised state government. An employer must submit a return to the tax department with proof of tax payment within the time frame provided.
Why do professional taxes differ by state?
The Professional Tax Regulations differ from one state to the next. Because the regulations differ from state to state, each state has the authority to establish limitations and charges. However, the maximum amount limitation has been set at Rs. 2500 each year. The salary slab structures used to assess Professional Tax vary by state.
How can I find my CTD reference number, Professional Tax?
Your bank will execute the transaction online by debiting your account in the amount specified on the CTD’s website, and successful payment information will be posted on the CTD’s website. You can then print an acknowledgement with the CTD Reference Number and the Bank Reference Number.
Professional tax is vital for every employer and self-employed employee. It is a type of contribution to the state’s welfare in which the individual starts the work. Suppose you are considering setting up or operating your company in India. In that case, this guide will give you a detailed insight into the Professional Tax Registration Certificate (PTRC) and the step-by-step procedure for downloading the PTRC challan.
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