Professional Tax Registration — State-Wise Guide for Employers
By CA Rajesh Kumar · Tax · 7 min read
Professional Tax registration in India. Which states have PT, rates, employer obligations, deduction from salary, and penalties for non-compliance.
What is Professional Tax?
Professional Tax is a state-level tax levied on individuals earning income through employment, profession, or trade. Deducted by employers from salaries and remitted to the state government. Maximum Rs. 2,500 per annum under Article 276. Deductible under Income Tax Act for both employers and employees.
Important:
Professional Tax applies in only 16 states. Multi-state businesses must register in each applicable state separately.
Applicable States
Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Puducherry, Sikkim, Tamil Nadu, Telangana, West Bengal. Not applicable in Delhi, UP, Rajasthan, Punjab, Haryana, most UTs.
Tax Slabs (Maharashtra Example)
Up to Rs. 10,000/month: Nil. Rs. 10,001-15,000: Rs. 175/month. Rs. 15,001-25,000: Rs. 200/month. Above Rs. 25,000: Rs. 300/month. Annual cap: Rs. 2,500.
Employer Obligations
- Register for PT in each applicable state within 30 days
- Obtain PTRC from state commercial tax department
- Deduct PT from salaries at prescribed rates
- Remit to state government by 15th of following month
- File periodic returns (monthly/quarterly/annually)
- Issue PT deduction certificate annually
- Report changes in address or closure
Registration Process
Determine applicable states, visit state commercial tax website, fill application with business details and employee info, upload documents (incorporation certificate, PAN, GST, address proof, bank statement, employee list), pay fee if applicable, receive PTRC. Timeline: 7-15 working days.
Penalties for Non-Compliance
Late registration: Rs. 5-100/day. Non-deduction: penalty equal to tax amount. Late remittance: 1-2% interest per month. Non-filing: Rs. 1,000-10,000 per period. Directors personally liable for unpaid amounts.
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End-to-end PT registration and compliance across all 16 states. Multi-state expertise, return filing, tax remittance coordination, and amendment support. Call +91-7566446151.