Is professional tax applicable on all income types?

PT applies to employment income, professional income, and in some states, business income. Rental, dividend, and capital gains income are not separately subject to PT.

How is professional tax deducted from salary?

Deduction is based on state-specific monthly salary slabs. In Maharashtra: ₹0 for salary up to ₹10,000; ₹150/month for ₹10,001–₹15,000; ₹200–₹300/month above ₹15,001 (₹2,500/year).

Is PT paid by employees deductible from income tax?

Yes, under Section 16(iii). The actual PT paid during the year is deductible from gross salary income under both the old and new tax regimes. Reflected in Form 16 Part B.

What are PT due dates in Maharashtra?

PTRC holders with liability above ₹50,000/year file monthly returns by the last day of the following month. Below ₹50,000/year, annual return by 31 March. PTEC holders pay annually by 30 June.

Professional Tax Assessment Services

Q: What is the difference between PTEC and PTRC?

PTEC is for the business entity's own professional tax. PTRC is for employers who deduct and remit professional tax on behalf of employees. Most businesses with employees need both.

Complete Guide to Professional Tax Registration, Assessment, Returns, and Compliance for Employers and Self-Employed Professionals in India

Professional Tax (PT) is a state-level tax levied by state governments under Article 276 of the Constitution of India on individuals earning income through employment, profession, trade, calling, or vocation. It is applicable in most states including Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, West Bengal, Gujarat, Madhya Pradesh, and others. Every employer is required to deduct professional tax from the salary of its employees and remit it to the state government — and self-employed professionals must also register and pay professional tax directly.

Professional tax liability varies by state, as each state has its own Professional Tax Act, slab rates, registration requirements, return filing periodicity, and due dates. The maximum professional tax that can be levied is ₹2,500 per year per person. Our professional tax services cover registration, computation, periodical return filing, and assessment-related compliance for employers and self-employed professionals across all major states.

Our Professional Tax Services

Employer Registration (PTEC & PTRC)

Registration of employers under state professional tax law — obtaining both Professional Tax Enrolment Certificate (PTEC) for the business entity and Professional Tax Registration Certificate (PTRC) for deduction and remittance from employees.

Employee Deduction Computation

Monthly computation of professional tax deductible from each employee based on state-specific salary slabs — ensuring correct deduction amounts are applied for different salary brackets and categories.

PT Return Filing

Preparation and filing of professional tax returns with the state tax authority — monthly, quarterly, or annually depending on the state and the employer's total PT liability — with challan payment and return reconciliation.

Self-Employed Professional Registration

Registration and annual PT payment assistance for self-employed professionals — chartered accountants, doctors, lawyers, architects, and other professionals liable to pay professional tax directly to the state government.

PT Assessment Representation

Representation before state professional tax authorities in assessment proceedings — providing documentation, reconciliation statements, and written submissions in response to assessment notices and demand orders.

Multi-State PT Compliance

Professional tax compliance management for businesses with employees in multiple states — tracking state-specific slab rates, due dates, and return formats across Maharashtra, Karnataka, Tamil Nadu, West Bengal, Gujarat, and other states.

Key Facts About Professional Tax

Professional tax is a state subject — each state with professional tax has its own Act, slab rates, and compliance requirements
The maximum professional tax that can be levied is ₹2,500 per person per year under Article 276 of the Constitution
Employers must obtain PTRC (to deduct and remit employee PT) and PTEC (for the business entity's own PT) — both are separate registrations in most states
In Maharashtra, professional tax is deductible as a business expense — and is also allowed as a deduction from gross salary income under Section 16(iii) of the Income Tax Act
States with professional tax include: Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, West Bengal, Gujarat, Madhya Pradesh, Assam, and others
Some states exempt certain categories — including senior citizens, parents of disabled children, persons with disabilities, and members of the armed forces — from professional tax
Non-deduction or non-remittance of professional tax attracts interest, penalties, and prosecution under the respective state PT Act

Frequently Asked Questions

What is the difference between PTEC and PTRC?

PTEC (Professional Tax Enrolment Certificate) is obtained by any person — individual, proprietor, company, firm — who is liable to pay professional tax on their own account as a business entity or a self-employed professional. PTRC (Professional Tax Registration Certificate) is obtained by employers who have employees and are required to deduct professional tax from employee salaries and remit it to the state government. An employer needs both: PTEC for the business's own professional tax and PTRC to deduct and remit on behalf of employees. A sole proprietor who also employs staff needs both registrations.

Is professional tax applicable on all types of income?

Professional tax applies to income from employment (salary), self-employment (profession), and in some states, to business income (trade and calling). It does not apply to all types of income — for example, rental income, dividend income, or capital gains are not separately subject to professional tax. The specific categories of persons liable to professional tax are defined in the schedule to each state's Professional Tax Act. The salary slabs and corresponding PT amounts also differ from state to state and are periodically revised by state governments.

How is professional tax deductible from the employee's salary?

Professional tax is deductible from the gross salary of each employee each month based on the applicable state slab rates. For example, in Maharashtra, an employee earning between ₹10,000 and ₹15,000 per month pays ₹150 per month (₹1,800 per year), while an employee earning above ₹15,001 pays ₹200 per month for February and ₹300 for all other months (₹2,500 per year). The employer deducts the applicable amount from the net salary and remits it to the Maharashtra state government by the due date — typically the last day of the month following deduction.

Is professional tax paid by employees deductible from income tax?

Yes. Under Section 16(iii) of the Income Tax Act, professional tax paid by an employee during the financial year is deductible from their gross salary income when computing taxable income. The deduction is available for the actual amount paid during the year — not the amount deducted by the employer. This deduction is available under both the old and new tax regimes. Employers reflect the professional tax deducted in the employee's Form 16 (Part B), and the employee claims it in the ITR under the standard deduction section.

What are the due dates for professional tax returns in Maharashtra?

In Maharashtra, an employer holding a PTRC must file a monthly professional tax return and remit the PT by the last day of the month in which salaries are paid — for employers with annual PT liability above ₹50,000. Employers with annual PT liability up to ₹50,000 file an annual return due by 31 March each year. PTEC holders pay professional tax annually — the due date is 30 June each year for the coming year's tax. Delay in payment attracts interest at 1.25% per month and a penalty ranging from 10% to 50% of the outstanding tax depending on the period of default.

Stay Compliant with Professional Tax — In Every State

Expert PT registration, return filing, and assessment support for employers and self-employed professionals across India.