Professional Tax
Registration
Professional tax (PT) is a state-level tax levied on individuals and entities engaged in professions, trades, or employments within India. Let us simplify compliance for you.
Who Needs to Register?
Unlike income tax, which is regulated by the central government, professional tax is governed by individual state laws. This means the rules, rates, and procedures can vary significantly across states. The maximum amount payable per annum towards professional tax is INR 2,500.
- 1. Employers: All employers must register for PT and deduct the applicable tax from their employees’ salaries.
- 2. Employees: Salaried employees earning above a threshold are liable. The employer remits this.
- 3. Self-Employed & Freelancers: Doctors, lawyers, CAs, and freelancers must register and pay PT based on their income.
- 4. Business Owners: Sole proprietors, LLPs, and companies engaged in trade or commerce are required to register.
PTRC vs PTEC
PTEC (Enrollment Certificate)
Who Needs It: Self-employed individuals, professionals, and business entities.
Purpose: Allows the entity or individual to pay their own professional tax directly to the state.
PTRC (Registration Certificate)
Who Needs It: Employers who have employees on payroll.
Purpose: Allows the employer to legally deduct professional tax from employees’ salaries and remit it.
Penalties and Due Dates
Registration must be completed within 30 days of hiring workers in a business or, in the case of professionals, within 30 days of beginning the practice.
- Late Registration: Penalty of Rs. 5 per day.
- Late Payment: Interest at 1.25% per month + penalty of 10% of the outstanding amount.
- Late Filing: Rs. 1,000 for delays up to one month; Rs. 2,000 for delays exceeding one month.
Payment Due Dates: For employers with more than 20 employees, payment must be made within 15 days of the end of the month. For employers with fewer than 20 employees, the deadline is the 15th of the month after the end of the quarter.
Applicable States across India
The following states currently impose professional tax:
- Andhra Pradesh
- Assam
- Bihar
- Gujarat
- Jharkhand
- Karnataka
- Kerala
- Madhya Pradesh
- Maharashtra
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Odisha
- Pondicherry
- Punjab
- Sikkim
- Tamil Nadu
- Telangana
- Tripura
- West Bengal
Ensure State Compliance
We will register your entity for PT and manage the monthly or quarterly state deductions for your employees.
Get Registered Today