Professional Tax
Professional Tax is a tax levied on every person earning income from any profession, trade or employment. As per Article 276 of the Constitution of India, every State Government has the right to levy professional tax. Accordingly, every person earning income / working in Mumbai, Thane or Navi Mumbai has to compulsorily pay tax to the Government of Maharashtra. Professional tax rates / fees differ from State to State. However, a maximum amount of Rs.2,500 for every financial year can be levied on any person.
There are two categories of persons on whom the Professional Tax is levied, viz –
- Self-employed + Business owners – Persons (natural as well as legal) who are self-employed, proprietors, employer or engaged in any profession, trade or calling
- Employees – Persons under employment of private entities
The due dates for payment of tax, type of registration and extent of compliance requirements are different for the above categories. The same is stated below.
Types of Registration – PTEC or PTRC
Professional Tax Enrollment Certificate (PTEC)
Every person (natural as well as legal) engaged in any profession, trade or calling is liable to pay professional tax. This refers to persons who are not employed by anyone else rather are self-employed or business owners. Such persons are required to obtain PTEC within 30 days from date of commencement of profession, trade or calling.
It includes companies, directors of companies, partners of firm, Limited Liability Partnerships (LLPs), independent professionals, traders, dealers, proprietors, etc. However, partnership firms and Hindu Undivided Family (HUF) are expressly excluded from the scope of professional tax.
They are liable to pay professional tax by 30th June of the relevant financial year and are not required to file any kind of return with respect to such liability.
Professional Tax Registration Certificate (PTRC)
Salaried persons are also liable to profession tax but their tax is to be deducted and paid by the employer. Entity paying salary of more than Rs.7,500 per month to any employee is mandatorily required to obtain PTRC. Such entities are responsible for –
- Obtaining PTRC – within 30 days from the date it becomes liable
- Deducting Professional Tax – from salary (or wages) of employees (or workers)
- Depositing the same with State Government – at the time of return filing
- Filing PT return – monthly or annually, based on total amount payable
As stated above, although the employer is responsible for paying professional tax to government, the same can be deducted from employee’s salary since it is employee’s liability. Professional tax is levied on the employee who earns income from his employment.
An entity required to obtain PTRC, for paying professional tax liability on behalf of its employees, is also required to obtain PTEC, for paying professional tax liability on its own account.
Tax Vyapar helps entities obtain registrations under the Professional Tax Act as well as file applicable returns at very reasonable and transparent charges / fees.
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Registration Charges
PT return filing charges
Annual Return
Annual Liability < Rs. 50000-
ANNUAL PT LIABILITY < RS. 50000
-
Annual Return Period – April to March
-
Salary Details for March to February
-
Due Date – 31st March
Monthly Return
Annual Liability >= Rs. 50000-
ANNUAL PT LIABILITY >= RS. 50000
-
Monthly Return (say April)
-
Salary Details for the preceding month (say March)
-
Due Date – Last day of the month in which return is filed (say April)
Due dates for Professional Tax payment
Professional Tax Enrollment Certificate (PTEC) Holder
| Category of Taxpayer | Due Date |
|---|---|
|
  First year of registration |
30 days from the date of registration or 30th June, whichever is earlier |
|
  Subsequent years |
30th June every year |
Professional Tax Registration Certificate (PTRC) Holder
| Category of Taxpayer | Return frequency | Details pertaining to | Due Date |
|---|---|---|---|
|
  First year of registration |
Monthly return |
Salary of previous Month |
 Last date of the month in which return is filed |
|
  Subsequent year   Tax liability < Rs.50,000 |
Annual return |
Salary of March to February |
31st March |
|
  Subsequent year   Tax liability < Rs.50,000 |
Monthly return |
Salary of previous Month |
 Last date of the month in which return is filed |
Registration Process
PT Registration process differs from state to state. The steps for Professional Tax Registration in Maharashtra are:
- Visit and Register on the website – mahagst.gov.in
- Fill all the required details such as address, place of business, bank details, etc.
- Upload scanned copies of relevant documents
- Tick the Declaration Box
- Preview and Print Application for own record purpose
- Submit Form online
- After verifying the details in application and documents uploaded, Registration Authority will generate TIN and send Certificate via email and post.
Time Frame
PTRC / PTEC Registration
To obtain Profession Tax Enrollment Certificate or Profession Tax Registration Certificate
Information + Documents Required
Relating to PLACE OF BUSINESS
If Rented:
- Rent Agreement / Lease Deed
- Electricity bill, Maintenance bill, Landline bill or Mobile bill *
If Owned:
- Purchase Agreement / Sale Deed
- Electricity bill, Maintenance bill, Landline bill or Mobile bill *
* Recent bill (last 1-2 months) in the name of business entity
Relating to FIRM / COMPANY
- Pre-printed cancelled Cheque of the entity or bank certificate in prescribed format
- PAN Card
- Certificate of Incorporation
Relating to PARTNERS / DIRECTORS / PROPRIETOR
- PAN Card
- Aadhar Card
- Mobile Number
- Email Id
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