You must have come across the term “professional tax” on your monthly salary slips. You must pay professional tax if you are employed and receive a regular paycheck. A state-level tax also known as a professional tax is levied on salaried workers and professionals. All eligible persons in West Bengal are expected to register for and pay the professional tax on a yearly basis. However, there may be situations where an individual is no longer liable to pay professional tax or may have moved out of West Bengal. To avoid extra legal and financial issues, it is crucial to cancel professional tax registration.

You can take the help of best income tax consultants in Kolkata to avoid penalties and complete the process in easy way. In this article, we’ll discuss in detail how to cancel professional tax registration in West Bengal.

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What is Professional Tax?

State governments in India impose a professional tax on salaried people and business owners. A little amount of tax is taken out of the employee’s pay and sent to the state government. The amount of professional tax that must be paid depends on the income slab of the individual and the state in which they are employed. The maximum limit of professional tax which can be deducted from your salary is Rs.2500. The employer often withholds professional tax from the employee and then pays it to the state government. It is used by the state government for various welfare activities.

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Why It’s Important To Cancel The Professional Tax If It’s Not Required?

If you do not need professional tax registration anymore, you should immediately consult a reputed tax firm in Kolkata to cancel it. Because failing to do so may result in needless financial and legal burdens. Only those who work in certain states of India as professionals, traders, or employees are subject to paying professional tax. You must cancel the registration if you have a professional tax identification number but it is no longer required. If the registration is not canceled, there may be ongoing tax obligations and penalties for non-payment. You may not be qualified for a refund or credit of the excess tax paid if you continue to pay professional tax when it is not necessary.

Check This: Know the Consequences if You Miss the Last Date of Income Tax Filing

Eligibility Criteria for Canceling Professional Tax Registration

According to the most reliable tax consultant Kolkata, these are some of the general eligibility criteria for canceling professional tax registration in India:

  • If an individual has closed their business, they can cancel their professional tax registration.
  • If a person has become unemployed, he can apply for canceling their professional tax registration.
  • If a person has relocated to a different state where professional tax is not applicable, they can also cancel their professional tax registration.
  • If an individual’s income falls below the threshold limit specified by the state government, they can cancel their professional tax registration.

How To Cancel Professional Tax Registration?

To cancel your professional tax registration you must follow the steps mentioned below-

1. Obtain the Cancellation Form

The first step you need to take is to obtain the professional tax cancellation form from the concerned authority of the state government.

2. Fill in the Form

Enter your name, address, PAN card number, professional tax registration number, and reason for cancellation.

3. Attach Required Documents

Attach the required documents such as a PAN card copy, professional tax registration certificate, and any other relevant documents.

4. Submit the Form

Submit the duly filled cancellation form along with the required documents to the concerned authority. 

5. Verification and Approval:

The concerned authority will verify the details provided. They will approve the cancellation of professional tax registration in 30 days.

6. Obtain Acknowledgment

Finally, you need to obtain an acknowledgment from the concerned authority as proof of cancellation.

How To Pay Professional Tax Online In West Bengal?

1. Visit the official website of the West Bengal State Government’s Commercial Tax Department.

2. On the homepage, click on the ‘e-Payment’ under the E-services section.

3. Next, select the type of payment as ‘Professional Tax.’

4. Then enter the Professional Tax Identification Number (PTIN) that is allotted to you by the Commercial Tax Department.

5. After entering the PTIN, verify the details such as name, address, and the amount payable.

6. Select the payment method from the options available, such as net banking, debit card, credit card, or e-wallets.

7. Enter the payment details such as your bank account or card details, and the amount to be paid.

8. Then verify the payment details before making the payment.

9. After verifying the details, click on the ‘Pay Now option to make the payment.

10. Once the payment is successful, you will obtain a receipt for the transaction as proof of payment.

Penalties for Non-Cancellation of Professional Tax Registration

  • The Commercial Tax Department will charge a late filing fee if a professional tax registration is not canceled within the mentioned time frame.
  • If the professional tax liability remains unpaid after the due date, interest will be charged on the amount of outstanding tax.
  • In extreme cases of non-compliance, legal action may be taken against the defaulter, which may result in fines, imprisonment, or both.

Sum Up-

Hopefully, you have understood how important is to cancel professional tax registration if it’s no longer required. It can help you avoid any legal or financial complications in the future. So, if you no longer require a professional tax registration certificate, consult a good tax firm that can help you cancel it easily.

Frequently Asked Questions –

What is professional tax registration in West Bengal?

Professional tax registration is a state-level tax. All individuals earning an income through a profession, trade, or employment are required to pay tax to the West Bengal government.

Can I cancel my professional tax registration in West Bengal?

Yes, you can cancel your professional tax registration if you no longer earn an income through a profession or trade in the state.

How long does it take to cancel professional tax registration in West Bengal?

It might take a few weeks to a month for completing the cancellation process of professional tax registration.

Do I need to cancel my professional tax registration in West Bengal if I move out of the state?

If you no longer earn an income through a profession or trade in West Bengal, you need to cancel your professional tax registration.

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