What is Professional Tax?
Professional Tax (PT) is a state-level tax imposed on income earned from salary, profession, trade, or employment. It is governed by individual state governments and capped at ₹2,500 per person per year under Article 276 of the Constitution.
Employers deduct PT from employees salaries and pay it to the state government; self-employed professionals pay it directly.
Which states levy Professional Tax?
| State | Levy? |
|---|---|
| Maharashtra | Yes |
| Karnataka | Yes |
| West Bengal | Yes |
| Tamil Nadu | Yes |
| Andhra Pradesh / Telangana | Yes |
| Kerala | Yes |
| Gujarat | Yes |
| Madhya Pradesh | Yes |
| Odisha | Yes |
| Delhi, UP, Haryana, Rajasthan, Punjab, Goa | No |
Each state publishes its own slab structure.
Who must register?
- Every employer with one or more employees in a PT-levying state needs:
- PT Employer Registration Certificate (PTRC) — to deposit PT deducted from salaries
- PT Enrolment Certificate (PTEC) — to pay PT on the employer entity itself
- Self-employed professionals (doctors, lawyers, CAs, consultants) need a PTEC
- Partnership firms, LLPs, companies — PTEC mandatory for the entity
Sample Maharashtra slab (employees)
| Monthly salary | Monthly PT |
|---|---|
| Up to ₹7,500 (men) / ₹10,000 (women) | Nil |
| ₹7,501 – ₹10,000 | ₹175 |
| Above ₹10,000 | ₹200 (₹300 in February) |
Registration process
- Visit the state commercial tax portal (mahagst.gov.in for Maharashtra)
- Register the entity and create login credentials
- Apply for PTRC (for employer)
- Apply for PTEC (for self / entity)
- Certificates are issued within 7–10 working days
Compliance calendar
- Monthly / quarterly PT payments depending on tax liability
- Annual return filed by the prescribed date per state
Penalties
- Late registration: daily penalty per state rules
- Late payment: interest 1.25% per month
- Non-payment: prosecution and prosecution-level fines
Let Bizotic manage your PT registration and monthly filings.
