Profession Is The Link Between An Individual And The Larger Society

Profession Is The Link Between An Individual And The Larger Society

LegalKart Editor
LegalKart Editor
06 min read 358 Views
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Last Updated: Aug 8, 2024

Profession is the link between an individual and the society. Through profession, an individual makes his/her contribution to the society and the society (in the form of an organisation, institution or a business structure or set-up). Profession provides bread and better to countless people across the world. 

 The Meaning & Definition Of Professional Tax   

Various professions are embedded into rules and laws that try to address the complications and ensure there are no leakages & wastes, flaws and anomalies. One aspect surrounding the profession of countless citizens across the world is the profession tax. Profession tax is the tax levied and collected by the state governments in India. It is a direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. 

You may also read Income Tax Verification

Online Professional Tax Registration - A Bird's Eye View  

Professional tax is a tax that is imposed by state governments on all salaried individuals. Professional tax is applicable to all working professionals, such as chartered accountants, lawyers, and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as professional tax is ₹2,500 per annum.
 

Smooth Online Professional Eligibility

Professional tax applicability: Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same.

Professional tax for self-employed: Any professional who obtains a monthly regular income will need to pay the professional tax. By the word professional, we mean people employed in specialized fields such as accountancy, media, etc.
 

Exemption From Paying Professional Tax

The professional tax rules provide exemptions for a few individuals; the exemptions are different based on the state you belong to. The professional tax rules provide exemptions to the following individuals:

  • Parents of children suffering from mental or permanent disability

  • Members of the armed forces

  • Individuals with permanent physical disability

  • The age differs state wise

  • Badli workers engaged in the textile industry

  • Women engaged exclusively as an agent under the directorate of small savings or Mahila Pradhan Kshetriya Bachat Yojana

  • Guardians or parents of mentally challenged individuals.

Also read TDS Returns.

Benefits

Here are the reasons why one should never miss a professional tax payment

Judicial requirement: Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
Avoid paying penalties: Failure to professional tax registration results in huge penalties that keep on increasing over time.
Easy to comply: The professional tax regulations are so easy to follow. The registration procedures can be done quickly and the further proceedings are also much easier.
Deductions: Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
State government tax: The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond ₹2500 per annum.


Documents Required: 

  • Certificate of incorporation, including MOA and AOA/LLP agreement

  • PAN card of company/LLP attested by the company director

  • Proof of office location with NOC from the owner of the premises

  • Proof of company bank account with bank statement and a cancelled cheque

  • Passport size photograph, address and identity proof from all the directors

  • Board resolution/ statement of consent by the partners

  • Shop and establishment certificate

  • Salary register and attendance register.


Online Professional Tax Registration - Detailed Process

Step 1: PAN card, address, and identity proof of all the directors/partners/proprietors of the company must be provided
Step 2: All the employee details must also be furnished
Step 3: The application form for professional tax must be filled by the employees
Step 4: Our experts will submit it to the concerned authorities
Step 5: The basic acknowledgement will be provided by us within 5 to 7 working days
Step 6: The registration hard copy will be issued within 10 days in all the major cities
Step 7: In other places, it might take up to 15 to 20 working days.
Understanding the Professional Tax Registration Applicability
Firms/Companies/LLPs

In the case of professional tax, firms, LLPs, corporations, societies, HUFs, associations, clubs, and companies are considered taxable entities. All the branches involved in these will also be considered separate individuals under professional tax.


Individuals (Professionals)

Legal practitioners such as notaries and solicitors, medical representatives such as dentists, medical consultants, doctors, and other professionals such as management consultants, tax consultants, surveyors, company secretaries, chartered accountants, insurance agents, engineers, architects, and contractors are all considered professional individuals who need to pay professional tax.


Partners and Directors

People who act as company directors, firm partners, LLP partners, and designated partners should pay professional tax. They should register under the professional tax act within 30 days of getting appointed in these roles.
 

Employers

Within 30 days of the company's incorporation, the company/firm must get a professional tax enrollment certificate (PTEC) by registering on the government portal.

The company/firm must have a professional tax registration certificate (PTRC) within 30 days of employing a staff member.The employers are supposed to deduct professional tax from the salary of the people employed under them and submit it at the professional tax department during the time of filing returns.

The employers are supposed to deduct professional tax from the salary of the people employed under them and submit it at the professional tax department during the time of filing returns. The employer will have to register at the professional tax department before 30 days of its applicability.


What are the Consequences of Professional Tax Violation?

Though the actual penal interest or penalty can change according to each state’s legislation board, all states will be charged a penalty if they have not registered after the professional tax legislation is made applicable. Also, penalties will be charged if the payments are not made within the due date or if the return is not filed within the due date specified.

Also read Know About The Founders Agreement.

Frequently asked questions

How Does an Individual Affect Society?

Individuals play a crucial role in shaping society through their actions, behaviors, beliefs, and innovations. Here are several ways in which individuals impact society:

  1. Cultural Influence:

    • Individuals contribute to the culture of society through their artistic expressions, traditions, customs, and language. Influential figures in art, music, literature, and film can inspire societal changes and shape cultural norms.
  2. Social Change:

    • Individuals who advocate for social justice, equality, and human rights can lead movements that bring about significant changes in laws, policies, and social attitudes. Activists, reformers, and leaders can mobilize people to address issues such as discrimination, poverty, and environmental protection.
  3. Economic Impact:

    • Entrepreneurs and business leaders create jobs, drive innovation, and contribute to economic growth. Consumers also shape markets through their purchasing decisions, influencing which products and services thrive.
  4. Political Participation:

    • Voting, campaigning, and participating in political processes allow individuals to influence government policies and leadership. Grassroots movements and public opinion can sway political decisions and bring about legislative changes.
  5. Education and Knowledge:

    • Educators, researchers, and intellectuals contribute to the advancement of knowledge and education. Their work can lead to new discoveries, technological advancements, and improvements in health and quality of life.
  6. Social Interaction:

    • Daily interactions among individuals help build social networks, foster community relationships, and create a sense of belonging. Social behaviors and norms are established and reinforced through these interactions.
  7. Innovation and Technology:

    • Inventors and scientists drive technological progress, leading to innovations that transform how people live, work, and communicate. These advancements can improve efficiency, connectivity, and quality of life.
  8. Role Models and Leadership:

    • Prominent individuals, whether in sports, entertainment, politics, or business, can serve as role models. Their actions and values can inspire others to pursue similar goals and adopt similar behaviors.

What is the ability to understand the relationship between the individual and society called?

The ability to understand the relationship between the individual and society is called sociological imagination. This term was coined by the American sociologist C. Wright Mills in 1959.

Sociological Imagination:

  • Definition: Sociological imagination is the capacity to see the intricate connections between personal experiences and larger social structures. It involves understanding how individual lives are shaped by historical, cultural, and social forces and how these forces, in turn, influence society.
  • Importance: This perspective helps individuals comprehend the broader context of their personal circumstances and recognize the societal patterns that influence their behavior, opportunities, and challenges. It encourages critical thinking about the interplay between individual agency and social institutions.
  • Application: Using sociological imagination, individuals can better understand issues such as inequality, unemployment, education, and health by examining how personal experiences are linked to social, economic, and political structures.

Online Consultation

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LegalKart - Lawyers are online
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+144 Online Lawyers
Lawyers are consulting with their respective clients
+21 Online Calls

Frequently asked questions

How Does an Individual Affect Society?

Individuals play a crucial role in shaping society through their actions, behaviors, beliefs, and innovations. Here are several ways in which individuals impact society:

  1. Cultural Influence:

    • Individuals contribute to the culture of society through their artistic expressions, traditions, customs, and language. Influential figures in art, music, literature, and film can inspire societal changes and shape cultural norms.
  2. Social Change:

    • Individuals who advocate for social justice, equality, and human rights can lead movements that bring about significant changes in laws, policies, and social attitudes. Activists, reformers, and leaders can mobilize people to address issues such as discrimination, poverty, and environmental protection.
  3. Economic Impact:

    • Entrepreneurs and business leaders create jobs, drive innovation, and contribute to economic growth. Consumers also shape markets through their purchasing decisions, influencing which products and services thrive.
  4. Political Participation:

    • Voting, campaigning, and participating in political processes allow individuals to influence government policies and leadership. Grassroots movements and public opinion can sway political decisions and bring about legislative changes.
  5. Education and Knowledge:

    • Educators, researchers, and intellectuals contribute to the advancement of knowledge and education. Their work can lead to new discoveries, technological advancements, and improvements in health and quality of life.
  6. Social Interaction:

    • Daily interactions among individuals help build social networks, foster community relationships, and create a sense of belonging. Social behaviors and norms are established and reinforced through these interactions.
  7. Innovation and Technology:

    • Inventors and scientists drive technological progress, leading to innovations that transform how people live, work, and communicate. These advancements can improve efficiency, connectivity, and quality of life.
  8. Role Models and Leadership:

    • Prominent individuals, whether in sports, entertainment, politics, or business, can serve as role models. Their actions and values can inspire others to pursue similar goals and adopt similar behaviors.

What is the ability to understand the relationship between the individual and society called?

The ability to understand the relationship between the individual and society is called sociological imagination. This term was coined by the American sociologist C. Wright Mills in 1959.

Sociological Imagination:

  • Definition: Sociological imagination is the capacity to see the intricate connections between personal experiences and larger social structures. It involves understanding how individual lives are shaped by historical, cultural, and social forces and how these forces, in turn, influence society.
  • Importance: This perspective helps individuals comprehend the broader context of their personal circumstances and recognize the societal patterns that influence their behavior, opportunities, and challenges. It encourages critical thinking about the interplay between individual agency and social institutions.
  • Application: Using sociological imagination, individuals can better understand issues such as inequality, unemployment, education, and health by examining how personal experiences are linked to social, economic, and political structures.

Online Consultations

LegalKart - Lawyers are online
LegalKart - Lawyers are online
LegalKart - Lawyers are online
+144 Online Lawyers
Lawyers are consulting with their respective clients
+21 Online Calls
Talk To Lawyer Or Online Consultation - LegalKart