Information

Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.

Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Manipur, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government.It is mandatory to pay professional tax. The rate of professional tax charged is based on the Income Slabs set by the respective State Governments. The tax amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act.

Types of Registration

Types of Registration Acronym Application Form Certificate Description
Enrollment Certificate PTEC FORM II FORM II-A The organization is required to obtain Enrollment Certificate and pay Profession tax on its behalf.
Registration Certificate PTRC FORM I FORM I-A Employer Organization is required to obtain Registration certificate under which the payment in respect of taxes deducted from employees’ salaries can be made

Exemptions from paying profession tax is granted to :-

  • Members of defense as defined in Army Act 1950,Airforce Act 1950,Navy Act 1950 reserve and auxiliary services drawing pay and allowances under the budgetary allocations of Defense Services excluding persons drawing pay and allowances from the establishments of Defense Ordinance Factories situated in any part of the Maharashtra State,
  • the badli workers in the textile industry,
  • any person suffering from permanent physical disability as specified in rule 32(1),
  • Women exclusively engaged as agents under Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings,
  • Parents or Guardian of any person suffering from mental retardation specified in rule 32(2),
  • Person who has completed the age of sixty five years,
  • Parents or guardians of a child suffering from a physical disability as specified in rule 32(1).

Key Features :-

  • State to State Registration
  • Compulsory in Nature
  • Statutory Compliant
  • Avoid Penalty

Documents / Information :-

  • Address Proof of Establishment: Any Utility Bill and NOC from the Owner of the Premises if it is rented/ Property Agreement.
  • Address Proof of Proprietor, Partners and Directors as applicable: Passport, Driving License, Aadhar Card etc.
  • PAN of Proprietor / all Partners / all Directors and Establishment
  • Proof of Constitution of Business :- In case of Firm - Partnership Deed, In case of Company - Certificate of Incorporation, Memorandum of Association, Articles of Association, Form DIR 12 or List of Present Directors
  • Two Passport Size Photo of Proprietor / all Partners / all Directors
  • Bank Details: Cancelled Cheque in the name of the firm/ business from the company current account or Certificate from the Bank mentioning the bankaccount details
  • E-mail id & mobile no. of all the Directors/Applicant

Process :-

Process Description
1st Fill up Online Application Form.
2nd Upload Self Attested Documents
3rd We shall proceed with Application procedure ( 22-25 Working Days)
4th We shall mail you the Registration Certificate

Professional Tax Slabs in Various States :-

Since each state tends to have its own slab for professional taxes, here are the slabs for various states and union territories in India.

Professional Tax in Maharashtra:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 7,500 for Men Nil
Up to Rs. 10,000 for women Nil
Rs. 7,500 to Rs. 10,000 Rs. 175
Rs. 10,000 and above Rs. 200 (for February - Rs.300)
Professional Tax in Tamil Nadu:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 21,000 Nil
Rs. 21,001 to Rs. 30,000 Rs. 100
RS. 30,001 to Rs. 45,000 Rs. 235
Rs. 40,001 to Rs. 60,000 Rs. 510
Rs. 60,001 to Rs. 75,000 Rs. 760
Rs. 75,001 and above Rs. 1095
Professional Tax in Odisha:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 5,000 Nil
Rs. 5,001 to Rs. 6,000 Rs. 30
Rs. 6,001 to Rs. 8,000 Rs. 50
Rs. 8,001 to Rs. 10,000 Rs. 75
Rs. 10,001 to Rs. 15,000 Rs. 100
Rs. 15,001 to Rs. 20,000 Rs. 150
Above Rs. 20,000 Rs. 200
Professional Tax in Gujarat:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 5,999 Nil
Rs. 6,000 to Rs. 8,999 Rs. 80
Rs. 9,000 to Rs. 11,999 Rs. 150
Rs. 12,000 and above Rs. 200
Professional Tax in West Bengal:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 8,500 Nil
Rs. 8,501 to Rs. 10,000 Rs. 90
Rs. 10,001 to Rs. 15,000 Rs. 110
Rs. 15,001 to Rs. 25,000 Rs. 130
Rs. 25,001 to Rs. 40,000 Rs. 150
More than Rs. 40,000 Rs. 200
Professional Tax in Karnataka:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 15,000 Nil
More than Rs.15,000 Rs. 200
Professional Tax in Andhra Pradesh:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 15,000 Nil
Rs. 15,001 to Rs. 20,000 Rs. 150
Above Rs. 20,000 Rs. 200

FAQ :-

Who is responsible to deduct Professional Tax?

The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.

He has to furnish a return to the tax department in the prescribed form within the specified time.

The return should include the proof of tax payment. In case the payment proof is not enclosed, the return shall be deemed incomplete and invalid

What Penalties for Non-Compliance on Professional Tax Payment?

Delay in obtaining Registration Certificate, a penalty of Rs. 5/- per day. In case of non/late payment of profession tax, penalty will be 10% of the amount of tax. In case of late filing of returns, a penalty of Rs. 1000 per return will be imposed if you filed after due date in 1 month. After 1 month, penalty should be Rs. 2000 will be imposed (from 01/04/2015) (Maharashtra: Profession Tax Act 1975).

What are the categories of persons liable for Profession Tax?

The categories of persons liable for Profession Tax are any individual, a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association.

If the dealer is registered under MVAT Act, then is it necessary to be registered under Profession Tax Act?

Yes, it is necessary for a Registered dealer under MVAT Act to obtain registration under Profession Tax Act.

Can those employing wage earners get a registration certificate?

Yes, they can get Registration Certificate if they are employing wage earners on regular basis, as only persons earning wages on casual basis are not liable to pay profession tax.

What is the time limit for obtaining Registration Certificate as an employer?

An employer, who wishes to obtain Registration Certificate, has to apply for the same within thirty days of his becoming liable to pay tax.

What is the penalty for furnishing wrong information’s?

The penalty prescribed as per section 5(6) for giving false information in application for Registration Certificate or Enrolment Certificate is equal to three times the tax payable under the Profession Tax Act.

What is the rate of interest for late payment?

The rate of interest is 1.25% per month of the amount of such belatedly paid tax.

Information

Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.

Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Manipur, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government.It is mandatory to pay professional tax. The rate of professional tax charged is based on the Income Slabs set by the respective State Governments. The tax amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act.

Types of Registration

Types of Registration Acronym Application Form Certificate Description
Enrollment Certificate PTEC FORM II FORM II-A The organization is required to obtain Enrollment Certificate and pay Profession tax on its behalf.
Registration Certificate PTRC FORM I FORM I-A Employer Organization is required to obtain Registration certificate under which the payment in respect of taxes deducted from employees’ salaries can be made
Exemptions from paying profession tax is granted to :-
  • Members of defense as defined in Army Act 1950,Airforce Act 1950,Navy Act 1950 reserve and auxiliary services drawing pay and allowances under the budgetary allocations of Defense Services excluding persons drawing pay and allowances from the establishments of Defense Ordinance Factories situated in any part of the Maharashtra State,
  • the badli workers in the textile industry,
  • any person suffering from permanent physical disability as specified in rule 32(1),
  • Women exclusively engaged as agents under Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings,
  • Parents or Guardian of any person suffering from mental retardation specified in rule 32(2),
  • Person who has completed the age of sixty five years,
  • Parents or guardians of a child suffering from a physical disability as specified in rule 32(1).
  • State to State Registration
  • Compulsory in Nature
  • Statutory Compliant
  • Avoid Penalty
  • Address Proof of Establishment: Any Utility Bill and NOC from the Owner of the Premises if it is rented/ Property Agreement.
  • Address Proof of Proprietor, Partners and Directors as applicable: Passport, Driving License, Aadhar Card etc.
  • PAN of Proprietor / all Partners / all Directors and Establishment
  • Proof of Constitution of Business :- In case of Firm - Partnership Deed, In case of Company - Certificate of Incorporation, Memorandum of Association, Articles of Association, Form DIR 12 or List of Present Directors
  • Two Passport Size Photo of Proprietor / all Partners / all Directors
  • Bank Details: Cancelled Cheque in the name of the firm/ business from the company current account or Certificate from the Bank mentioning the bankaccount details
  • E-mail id & mobile no. of all the Directors/Applicant
Process Description
1st Fill up Online Application Form.
2nd Upload Self Attested Documents
3rd We shall proceed with Application procedure ( 22-25 Working Days)
4th We shall mail you the Registration Certificate
Professional Tax Slabs in Various States :-

Since each state tends to have its own slab for professional taxes, here are the slabs for various states and union territories in India.

Professional Tax in Maharashtra:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 7,500 for Men Nil
Up to Rs. 10,000 for women Nil
Rs. 7,500 to Rs. 10,000 Rs. 175
Rs. 10,000 and above Rs. 200 (for February - Rs.300)
Professional Tax in Tamil Nadu:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 21,000 Nil
Rs. 21,001 to Rs. 30,000 Rs. 100
RS. 30,001 to Rs. 45,000 Rs. 235
Rs. 40,001 to Rs. 60,000 Rs. 510
Rs. 60,001 to Rs. 75,000 Rs. 760
Rs. 75,001 and above Rs. 1095
Professional Tax in Odisha:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 5,000 Nil
Rs. 5,001 to Rs. 6,000 Rs. 30
Rs. 6,001 to Rs. 8,000 Rs. 50
Rs. 8,001 to Rs. 10,000 Rs. 75
Rs. 10,001 to Rs. 15,000 Rs. 100
Rs. 15,001 to Rs. 20,000 Rs. 150
Above Rs. 20,000 Rs. 200
Professional Tax in Gujarat:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 5,999 Nil
Rs. 6,000 to Rs. 8,999 Rs. 80
Rs. 9,000 to Rs. 11,999 Rs. 150
Rs. 12,000 and above Rs. 200
Professional Tax in West Bengal:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 8,500 Nil
Rs. 8,501 to Rs. 10,000 Rs. 90
Rs. 10,001 to Rs. 15,000 Rs. 110
Rs. 15,001 to Rs. 25,000 Rs. 130
Rs. 25,001 to Rs. 40,000 Rs. 150
More than Rs. 40,000 Rs. 200
Professional Tax in Karnataka:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 15,000 Nil
More than Rs.15,000 Rs. 200
Professional Tax in Andhra Pradesh:
Salary Slab Amount of Profession Tax to be paid
Up to Rs. 15,000 Nil
Rs. 15,001 to Rs. 20,000 Rs. 150
Above Rs. 20,000 Rs. 200
Who is responsible to deduct Professional Tax?

The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.

He has to furnish a return to the tax department in the prescribed form within the specified time.

The return should include the proof of tax payment. In case the payment proof is not enclosed, the return shall be deemed incomplete and invalid

What Penalties for Non-Compliance on Professional Tax Payment?

Delay in obtaining Registration Certificate, a penalty of Rs. 5/- per day. In case of non/late payment of profession tax, penalty will be 10% of the amount of tax. In case of late filing of returns, a penalty of Rs. 1000 per return will be imposed if you filed after due date in 1 month. After 1 month, penalty should be Rs. 2000 will be imposed (from 01/04/2015) (Maharashtra: Profession Tax Act 1975).

What are the categories of persons liable for Profession Tax?

The categories of persons liable for Profession Tax are any individual, a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association.

If the dealer is registered under MVAT Act, then is it necessary to be registered under Profession Tax Act?

Yes, it is necessary for a Registered dealer under MVAT Act to obtain registration under Profession Tax Act.

Can those employing wage earners get a registration certificate?

Yes, they can get Registration Certificate if they are employing wage earners on regular basis, as only persons earning wages on casual basis are not liable to pay profession tax.

What is the time limit for obtaining Registration Certificate as an employer?

An employer, who wishes to obtain Registration Certificate, has to apply for the same within thirty days of his becoming liable to pay tax.

What is the penalty for furnishing wrong information’s?

The penalty prescribed as per section 5(6) for giving false information in application for Registration Certificate or Enrolment Certificate is equal to three times the tax payable under the Profession Tax Act.

What is the rate of interest for late payment?

The rate of interest is 1.25% per month of the amount of such belatedly paid tax.