How to Prove Profession Tax Payment When Your Former Employer No Longer Exists?

I am a doctor. I was employed in a company between Dec 2006 to Oct 2007. I have received a notice from the PT department asking me to provide my PT proof. The officer is requesting me to obtain a letter from the company stating that they have deposited the tax along with their PTRC number.

The issue I am encountering is that the company in question no longer exists. I have attempted to contact them on their provided numbers, but all the numbers are now invalid. Furthermore, when I visited the office's previous location, I discovered that the company has ceased to exist and no one knows its current whereabouts.

I possess the last salary slip from that company, indicating the total profession tax deducted during my employment from Dec 2006 to Oct 2007.

Questions Regarding PT Proof and Responsibilities

My question now is, how can I obtain a letter from a company that no longer exists? Is the salary slip not adequate as proof that my PT was deducted by the company? Am I accountable for ensuring that the company is remitting the PT deducted from my salary to the PT office? Alternatively, is it the PT office's responsibility to verify that all companies properly deposit the tax?

Any assistance in this matter would be greatly appreciated.

Thank you.

It is definitely the employer's duty to deduct the PT from their employees and remit the same at the appropriate office within one month of such deduction. In your case, the same is stated in the salary slip also. But unfortunately, your previous employer might not have remitted that at the PT department. Did you claim an exemption for that amount when you filed a return as per the then Form No. 16 provided by the employer? If they had confirmed that deduction and the same is indicated in your salary slip, you have proof to seek exemption from the authorities.

However, the department can always attribute the onus of proof of remittance of PT to you, as they have raised this issue after a few years. It is better to go and meet the concerned authorities with Form 16 of IT, your return filed then based on that, and the salary slips and request exemption from payment. The employer has closed down the organization, which is definitely known to the PT department, and that is why they are taking up the matter with the then employees.

You may also consult a lawyer in case they are very adamant about their stand.

Good luck.

Regards,
Dr. Gopan

It is very strange that an employee gets a notice from the PT department, while normally it is only the company which receives such notices, as there are registrations of the company and its directors with the PT department. I wonder where they got your address from, as such details are not shared with the PT department by companies.

In my view, the notice may pertain to your vocation as a doctor, if you are a practicing one, as all practicing professionals need to pay PT separately as per the State Act. Apart from this forum, you may please consult your CA about the same.

The notice has probably been sent by the PT authorities because you are a professional doctor and are required to pay professional tax. They may not be aware that you were employed with a company for a specific period, and hence, the remittance as a doctor may need to be proved to the PT authorities. You may want to prove this by providing them with the offer letter or the relieving letter from the company, which should show your start date as an employee and end date. This should prove that you were not in practice during the said period.

Hope this helps.

Regards,
Showri

Thank you all for your valuable responses.

Dr. Gopan - Unfortunately, I do not even have the Form 16 from the company. It was my first job, and I was not very aware of all these things back then. I just have the offer letter and the last salary slip from that company.

Dixon - They have issued notices to almost all the doctors. The address and other details have been taken from the medical council.

Showri - Yes, that is what I am going to do. Let's hope that works. Should things not work, I will have to consult my CA then!

Thank you.

As mentioned by Dixon, the PT department is claiming the Professional Tax for the profession of Doctor as a practitioner and not as an employee. If you are a practitioner doctor (at present), get yourself enrolled and pay the Professional Tax with interest/penalty, which is very nominal.

If you are a doctor (employee) for the period of PT inquiry, your appointment letter as a full-time employee as a doctor and your last salary slip will suffice to prove you are an employee and not a medical practitioner. This has to be proved to the competent authority of your municipal corporation.

I have one more query. If any of you can provide me with your valuable inputs, that will be very helpful.

I was on the job until September 2011. Thereafter, for almost one and a half years until March 31, 2013, I was not working or practicing. However, as I have a valid registration number from the Medical Council, I still have to pay the Professional Tax for that said period (September 2011 - March 31, 2013). For this, I need to get a PTEC number and pay the tax + interest + penalty.

Now, from April 1, 2013, I have joined a job again.

Professional Tax Deduction Confusion

The confusion is, my current employer will deduct the Professional Tax on my behalf, and while depositing the tax in the Professional Tax office, the company will use their PTRC number. When I get a PTEC number (in order to pay the pending tax for the period between September 2011 - March 31, 2013), what will happen going forward? Will my PTEC number be of no use, and no tax will be deposited under that number as my current employer will use its PTRC number for depositing tax on my behalf? So again, will notices be sent saying that I am not paying taxes, or is there any rule/arrangement that can be done to avoid this? I do not want to pay the Professional Tax myself and prefer to have my employer deduct it and deposit it on my behalf.

If anyone can shed some light on this, that would be highly appreciated.

Thank You.

Even if the employer remits the PT in their PTRC account number, it is done on behalf of the employees, who will have a PTEC account number, which is the same in a state, irrespective of the remittances made in any office. It's just like your SB account number of a bank, which is unique to individuals. So, don't worry about PT remittance as a professional and as an employee. But obtain receipts for remittances made from the employer as well as from the office where you remitted your arrears as a doctor (professional).

Regards,
Dr. Gopan

Update on Professional Tax Payment

Just an update for the benefit of all. The PT office did accept the offer letter and salary slips as proof of payment of tax. I informed them that the said company has shut down. Now, in order to pay the PT between September 2011 and March 31, 2013, I do not need to obtain a PTEC number as I am currently employed. They have provided me with a challan mentioning the commissioner of PT TIN on it. Therefore, I will be depositing the tax using that challan, and going forward, my employer will deduct the PT tax as usual. The issue of me obtaining a PTEC number has been resolved.

Thank you.