Professional Tax (PT) Registration

Professional Tax is a state-level tax levied on income earned by salaried employees, professionals, and businesses. It is applicable in states like Maharashtra, Karnataka, West Bengal, Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, etc. (not applicable in all states).

It is collected by the State Government / Municipal Corporation and deposited into the respective state treasury.

Who Needs Professional Tax Registration?

  1. Employers

    • Must obtain Professional Tax Employer Registration Certificate (PTEC).

    • Responsible for deducting PT from employees’ salaries and remitting it to the state.

  2. Self-Employed Professionals & Businesses

    • Must obtain Professional Tax Enrollment Certificate (PTRC).

    • Includes CA, doctors, lawyers, consultants, freelancers, traders, shop owners, etc.

Documents Required for PT Registration

  • PAN & Aadhaar of employer/proprietor/partners/directors

  • Address proof of business (electricity bill, rental agreement, property tax receipt)

  • Incorporation documents (Partnership Deed, MOA & AOA, Certificate of Incorporation)

  • Employer details (employee list with salaries)

  • Salary structure (for deduction slab verification)

  • Bank account details of establishment

  • Passport-size photos

PT Registration Process

  1. Application Filing – Online application through state’s Commercial Tax/Professional Tax Department portal.

  2. Document Submission – Upload required KYC and business details.

  3. Verification by Authorities – Department verifies the details & documents.

  4. Issuance of Registration Certificate – Employer gets PTEC & PTRC certificates.

  5. Monthly/Quarterly Returns Filing – Employer deducts PT from salaries & deposits with state govt.

Penalties for Non-Compliance

  • Penalty for late registration: varies by state (₹5/day to ₹20/day).

  • Penalty for late payment: 1.25% to 2% interest per month.

  • Penalty for late filing of return: lump sum fine (₹1,000 – ₹5,000).

Benefits of Professional Tax Registration

  • Mandatory compliance in applicable states.

  • Helps in smooth employee payroll processing.

  • Avoids fines, interest, and legal notices.

  • Adds credibility when dealing with govt. departments.

✅ In summary: Professional Tax Registration is compulsory for employers (for employees’ deduction) and professionals/self-employed individuals in states where PT is applicable.