Professional Tax Registration

Professional Tax Registration & Compliance

Professional Tax (PT) is a tax levied by state governments in India on individuals earning income through employment, business, trade, or profession. It is mandatory for both employers and self-employed professionals to register for and pay this tax, as per the rules of their respective states.

Who Should Register for Professional Tax

Professional Tax is applicable to the following:

• Salaried employees
• Self-employed professionals such as doctors, lawyers, chartered accountants, and consultants
• Business owners, firms, companies, LLPs, and co-operative societies
• Freelancers and traders earning income above the exempt limit

Employers are required to deduct this tax from their employees' salaries and pay it to the government. Self-employed individuals must pay it directly.

States Where Professional Tax is Applicable

Applicable States:
Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Punjab, Sikkim, Tamil Nadu, Telangana, Tripura, West Bengal

Non-Applicable States:
Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Goa, Jammu & Kashmir, Chandigarh, Ladakh, Daman & Diu, Lakshadweep, Andaman & Nicobar Islands

Professional Tax Rates

The tax amount is based on income slabs and may vary by state. However, the maximum payable limit is Rs. 2,500 per year.

Employers deduct it monthly from employee salaries. Self-employed individuals can pay it monthly, quarterly, or annually, depending on the state rules.

Employer Responsibilities

• Deduct professional tax from employee salaries
• Register for a Professional Tax Registration Certificate (PTRC)
• Pay the collected tax to the state government
• File regular returns with proof of tax payment
• Maintain proper records

Exemptions from Professional Tax

The following individuals are exempt from paying professional tax:

• Senior citizens (above 65 years)
• Parents of children with mental or permanent physical disabilities
• Individuals with permanent disabilities, including blindness
• Members of the armed forces and auxiliary forces
• Women working as agents under government saving schemes
• Badli workers in the textile sector

Due Dates for Payment

Employers with:

• More than 20 employees must pay monthly, by the 15th of the following month
• Up to 20 employees must pay quarterly, by the 15th of the month following the quarter

Note: Return filing dates may vary from state to state.

Documents Required for Registration

• Certificate of Incorporation / Partnership Deed / LLP Agreement
• PAN of the business and owner
• Address and identity proof of proprietor, partners, or directors
• NOC from the landlord (if premises are rented)
• Passport-size photo of the applicant
• Details of employees and their salaries
• Relevant licenses and registrations

Registration Process

1. Collect required documents
2. Submit the professional tax registration application to the state tax department
3. Department reviews and verifies details
4. Professional Tax Certificate is issued after successful approval

Penalties for Non-Compliance

• Failure to register: Rs. 5 per day
• Late payment: 1.25% interest per month, plus 10% penalty
• Late return filing: Rs. 1,000 or more, depending on state

Example: For a delay in paying Rs. 1,00,000 for one year, the total penalty and interest may amount to Rs. 11,250

Why Choose Easy My Tax

• Professional support throughout the registration process
• Fast and accurate filing with proper documentation
• State-wise compliance as per latest tax rules
• Personalized service based on your profession or business size
• End-to-end assistance including payment and return filing

Get Started with Easy My Tax

Stay compliant and avoid penalties. Let us handle your professional tax registration and filing while you focus on your business.

Contact Easy My Tax today for a smooth and hassle-free experience.