ESI
ESI registration is mandatory for employers who meet the following criteria:
The establishment employs 10 or more employees
The employees earn a maximum of Rs. 21,000 per month
The establishment is covered under the ESI Act
Employers or Organisation must register with the ESIC within 15 days of becoming eligible.
Employers are also required to: Maintain accurate records, Regularly submit contributions, Comply with ESIC regulations, Display ESIC information in the workplace, and Facilitate employee access to ESIC benefits.
Employers who do not comply with the ESI Act may face penalties, including imprisonment up to one year and/or a fine up to Rs. 4,000.
ESI registration provides benefits to employees and their dependents, including coverage in many unfavorable situations, such as death on duty.
PT:
As per the Telangana Professional Tax Act, 1987, earning individuals are required to pay this tax; depending on their income, it can be a maximum of Rs 2500 and a minimum of Rs 110 annually. For instance, if you earn more than Rs 20,000 per month, the professional tax payable per month is Rs 200.
Under this act, every individual or entity registered under the Professional Tax rule must submit the assessing authority Form V every month detailing the salaries paid and the amount of tax deducted from the wages.
Professional Tax Applicability in Telangana
All individuals are responsible for paying this tax in Telangana. For a better understanding, let's look at the taxpayers of Telangana as per their employment status.
Salaried Individuals: Your employer is responsible for deducting professional tax from your salary/wages and paying it to the state government. Under section 16(3) of the Income Tax Act 1961, you can claim a tax deduction on professional tax paid under the Old tax regime.
Self-employed Individuals: Unlike salaried individuals, self-employed are required to self-deposit the professional tax. Even though self-employed individuals are subject to the same slab rate, they cannot claim it as a tax deduction on their income tax returns.
