23 June 2022 1:44

Professional tax for employees – startup in India

Register your Startup from Rs. 7,999/- A person earning income from salary or professions such as Chartered Accountants, Company Secretaries, Lawyers, etc. is required to pay professional tax. For the purpose of this registration, the employers, professionals, traders, etc. come under the purview of registration.

Is professional tax mandatory for startups?

When is Professional Tax registration required? Professional tax enrollment certificate (PTEC) is mandatory in the case of professionals/ business and has to be applied within 30 days of commencement of practice/business.

Do startup employees pay taxes?

Tax Incentives for Start-ups
The Govt has announced 100% Tax Deduction under Section 80-IAC for eligible Start-ups from payment of Income Tax. Eligible start-ups formed on or after 1st April 2016 and before 1st April 2019 can claim 100% Tax Exemption from payment of any Income Tax for any 3 consecutive years.

Are startups exempted from tax?

Post getting recognition a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.

How are startups taxed in India?

The long-term capital gains (LTCG) on sale of unlisted shares is taxable at the rate of 20% (plus applicable surcharge and cess) in case of domestic investors and 10% (plus applicable surcharge and cess) in case of foreign investors.

Is PT mandatory for all companies?

Every business establishment (Employer) liable to pay Professional Tax on annual basis and every employee whose income is Rs. 15000 or more is liable to pay professional tax of Rs. 200 per month.

Who is exempt from paying professional tax?

The following individuals are exempt from paying professional tax: Parents or guardians of children with a mental disability or permanent disability. An individual suffering from a permanent physical disability including blindness. Any individual of above 65 years.

How are startups taxed?

Most of your startup expenses are treated as capital costs for tax purposes. The IRS considers them long-term assets—you’re investing in the future of your business. As assets, generally you must depreciate them rather than deduct their cost in the year they’re purchased.

How do startup companies pay employees?

What is a reasonable startup salary? Working for a startup almost always involves taking a salary cut, i.e. being paid lower than market rate. However, startup employees expect to receive other forms of compensation—usually equity in the company—with the hope that these will make up for the lost wages in the long run.

How many years are startups tax exempt?

three consecutive years

Startups, under the scheme, are eligible for a 100% tax break on profits made for three consecutive years out of the first ten years since incorporation, given that their annual turnover doesn’t exceed Rs 25 crore in any financial year.

What are the benefits of Startup India?

Benefits of Startup India Scheme

  • Self Certification under Labor and Environmental Laws. …
  • Tax Exemption for Three Years. …
  • Tax Exemption on Investment Above Fair Market Value. …
  • Easy Winding Up of Company. …
  • Startup Patent Application and IPR Protection. …
  • Relaxation in Public Procurement Norms. …
  • SIDBI Fund of Funds.

How do entrepreneurs pay taxes?

An entrepreneur only pays taxes in accordance with his business activity. All other aspects of tax payment—from filing to withholding to receiving a refund—are the same for those considered entrepreneurs as those who are not.

What is the benefit of startup scheme?

The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of Startup India Scheme is Simplification of Work, Finance support, Government tenders, Networking opportunities.

Who is eligible for Startup India scheme?

All business startup in India that have been incorporated in the past five years from the effective date of the policy will be eligible under this scheme. Simply, all businesses incorporated or registered after February 15, 2011, are eligible to participate in this government startup scheme.

What is India’s startup policy?

The Startup India initiative was announced by Hon’ble Prime Minister of India on 15th August, 2015. The flagship initiative aims to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.

Is it good to join startup company in India?

Startups are a fantastic opportunity for career growth and to gain experience that is more difficult to come by in a corporation. This is the case even if you end up at one short term. You can still work it to your benefit. You can get your hands dirty in a variety of ways.

Why you shouldn’t work for a startup?

Unlike corporates, the number of people in a startup is quite limited. If you do not deliver, it affects the entire team and company. So there is a high chance of getting fired if you or your team member can’t live up to the expectations.

Do startups give bonuses?

As a company matures, the bonus offering can and usually does change. Some mid-stage startups have special and unique packages and incentives for their C-Level and “top” execs, but those perched lower on the totem are not as fortunate.

Is it better to work in startup or MNC?

What is the difference between a startup and an MNC? MNCs provide better work-life balance, whereas, startups offer much more scope of learning to their employees. If one likes a fast-paced life, then one should choose a startup. But if one likes more structured workplaces, then an MNC can be the best option.

Can a startup be MNC?

It completely depends on your personality. An MNC and a startup are two different ends of a spectrum. With an MNC things are more structured, you have large teams with multiple hierarchies and most importantly you have a sense of job security (mostly but not always).

What is the difference between startup and company?

The definition is as follows: a startup is “a temporary organization designed to look for a business model that is repeatable and scalable.” While a company is “a permanent organization designed to execute a business model that is repeatable and scalable.” Therefore the difference is that startups look for an