Professional Tax

Professional Tax (P-Tax): A Simple Compliance Guide for Businesses in India

In the world of statutory compliance, Professional Tax (P-Tax) is often misunderstood yet critically important. Many businesses unknowingly ignore it—only to face penalties later. With over a decade of professional experience, VG Expert Advisors LLP helps organizations stay compliant and stress-free.

What is Professional Tax?

Professional Tax is a state-level tax levied on salaried employees, professionals, and business owners. It is governed by respective State Professional Tax Acts and collected by State Governments.

Despite being called a “tax,” it is not imposed by the Central Government and varies from state to state.

Who is Liable to Pay Professional Tax?

Professional Tax applies to:

  • Salaried employees
  • Employers (to deduct & remit tax)
  • Self-employed professionals such as CAs, doctors, consultants, traders

Every employer must register, deduct P-Tax from salaries, and deposit it on time.

Professional Tax Slab & Limit

  • Maximum Professional Tax payable is ₹2,500 per year
  • Slabs differ based on salary structure and state rules
  • Deducted monthly or annually depending on state regulations

Why Professional Tax Compliance is Crucial

Non-compliance can result in:

  • Penalties & interest
  • Legal notices from tax authorities
  • Disruption in audits & due diligence
  • Loss of business credibility

Timely registration and regular filing safeguard your business from unnecessary financial and legal risks.

Professional Tax Benefits

  • Deductible under the Income Tax Act
  • Simple and low-cost statutory compliance
  • Helps maintain clean payroll records

How VG Expert Advisors LLP Can Support You

At VG Expert Advisors LLP, we provide complete Professional Tax solutions:

  • Professional Tax Registration
  • Monthly / Annual P-Tax Returns
  • Payroll Compliance Management
  • Handling Notices & Assessments

We ensure your compliance is accurate, timely, and hassle-free.

Get Expert Support Today 🚀

Avoid penalties. Stay compliant. Focus on growth.

📞 Contact Us for Professional Tax consultation
🌐 Visit our Website: https://www.vgtaxadvisors.com/
📲 Follow us on Instagram: @vgexperts_hyd

VG Expert Advisors LLP – Simplifying Tax & Compliance for Growing Businesses

Provident Fund (PF)

A Complete Guide for Employers & Employees in India

In today’s evolving compliance landscape, Provident Fund (PF) is not just a statutory requirement—it is a powerful long-term savings tool for employees and a key responsibility for employers. With over a decade of professional experience, we at VG Expert Advisors LLP help businesses stay compliant while building employee trust.

What is Provident Fund (PF)?

Provident Fund is a government-backed social security scheme regulated by the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. It ensures financial stability for employees after retirement by encouraging disciplined monthly savings from both employer and employee.

Who is Required to Register for PF?

PF registration is mandatory for:

  • Establishments employing 20 or more employees

  • Employees earning up to ₹15,000 per month (mandatory)

  • Higher-salary employees (optional with consent)

Even startups and growing businesses can voluntarily register to enhance credibility and employee retention.

PF Contribution Structure

  • Employee Contribution: 12% of basic salary + DA

  • Employer Contribution: 12% (split between EPF & EPS)

These contributions accumulate with attractive interest rates, making PF a safe and tax-efficient investment.

Why PF Compliance Matters for Employers

Non-compliance can lead to:

  • Heavy penalties & interest

  • Legal notices and inspections

  • Loss of business reputation

Timely PF registration, monthly returns, and accurate payroll integration protect your organization from unnecessary risks.

Benefits of PF for Employees

  • Retirement corpus with guaranteed returns

  • Tax benefits under the Income Tax Act

  • Financial security during emergencies

  • Pension benefits under EPS

How VG Expert Advisors LLP Can Help

At VG Expert Advisors LLP, we provide end-to-end PF services including:

  • PF registration & setup

  • Monthly compliance & filings

  • PF audits and notices handling

  • Payroll & statutory advisory

Take the Next Step 🚀

Stay compliant. Build trust. Grow confidently.

📞 Contact Us Today for expert PF consultation
🌐 Visit our website: http://www.vgtaxadvisors.com/
📲 Follow us on Instagram: @vgexperts_hyd

VG Expert Tax Advisors LLP – Your Trusted Partner in Compliance & Growth

What is ESI?

Who is Covered Under ESI?

  • Factories:
    Applicable when 10 or more employees are engaged.
  • Covered Establishments (Section 1(5)):
    Shops, hotels, restaurants, cinemas, road transport undertakings, newspaper establishments, private medical institutions, and educational institutions employing 10 or more employees, as notified by the respective State Government.
  • State Variations:
    In certain states, the applicability threshold may be 20 employees for specific establishments. Hence, state-specific verification is crucial.
  • Wage Limit:
    • General employees: Up to ₹21,000 per month
    • Persons with Disabilities: Up to ₹25,000 per month
  • Once ESI becomes applicable, registration is mandatory, and non-compliance may lead to penalties, interest, and legal action.

ESI Contribution Structure

  • Employer Contribution: 3.25% of wages
  • Employee Contribution: 0.75% of wages

💡 Contributions must be deposited on or before the 15th of the following month to avoid interest and legal consequences.

Key Benefits of ESI

✔ Cashless medical treatment for employees and their dependents
✔ Sickness and maternity benefits
✔ Disability and dependent benefits
✔ Funeral expense coverage

ESI not only safeguards employees but also enhances employer credibility and statutory compliance.

Common ESI Compliance Mistakes

  • Delay in ESI registration
  • Incorrect wage calculation
  • Late payment of contributions
  • Non-filing or incorrect filing of ESI returns

⚠️ These lapses often result in penalties, interest, inspections, and compliance notices.

Why Choose VG Expert Advisors LLP?

With 10+ years of professional experience, we offer end-to-end ESI compliance solutions, including:

  • ESI Registration & Monthly Compliance
  • Accurate Contribution Calculation & Return Filing
  • Advisory on ESI Applicability & Thresholds
  • Handling ESI Notices, Audits & Assessments

Call to Action (CTA)

📢 Need expert guidance on ESI compliance?
Let our professionals manage your statutory obligations while you focus on growing your business.

🌐 Visit our website:
👉 www.vgtaxadvisors.com

📩 Contact VG Expert Advisors LLP today for reliable ESI advisory and compliance support.

📲 For updates, compliance tips, and tax insights, follow us on Instagram:
👉 @vgexperts_hyd