Professional Tax Registration & Filing

Professional tax is levied by State Governments under the power conferred by Article 276 of the Constitution of India, which permits a State Legislature to make laws imposing taxes on professions, trades, callings and employments, subject to a ceiling of ₹2,500 per person per annum under Article 276(2). Since the levy is state-specific, both the registration mechanism and the tax slabs vary by state — for example, employers in Maharashtra must obtain both a Professional Tax Registration Certificate (PTRC, for deducting and depositing tax on employees' salaries) and a Professional Tax Enrolment Certificate (PTEC, for the employer's own liability) under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, with monthly returns required where annual tax liability exceeds ₹50,000 and an annual return otherwise; Karnataka operates an equivalent PTRC/PTEC framework under its 1976 Act; and Andhra Pradesh/Telangana and West Bengal have their own analogous statutes (1987 and 1979 respectively).

An employer must register in every state where it has a place of business or employs staff, since professional tax registration and payment obligations are not centralised, and default under the applicable state Act typically attracts interest and penalty computed as a percentage of the tax due, in addition to the tax itself. This service covers initial registration (PTRC/PTEC or the state-equivalent) and the first return filing under the relevant state professional tax statute.

Professional tax registration is the enrolment of the employer and the employees under the professional tax levied by the state governments under the respective state professional tax acts — the registration of the employer with the state authority, the deduction of the professional tax from the employees' salaries at the prescribed slab rates, the payment and the returns to the state, and the certificates. The professional tax is the state levy on the employment income, and its ceiling is fixed under the Constitution of India — VERIFY: the professional tax is limited to ₹2,500 per annum under Article 276 of the Constitution.

The professional tax is the state's levy on the professions and the employment, deducted by the employer at the slab rates the state prescribes, remitted and reported to the state authority, with the maximum under Article 276 of the Constitution. The compliance is the registration, the monthly deduction and the returns — and it applies alongside the TDS and the PF-ESI on the same payroll.

The cost of a missed professional tax is the state's demand: the tax not deducted or not remitted, the interest and the penalty under the state act, and the employer's exposure at the state inspection. The professional tax is small per employee and significant in the aggregate.

This service is for employers subject to the professional tax. We register the employer with the state authority, set up the professional tax computation on the payroll at the prescribed rates, deduct and remit the tax monthly, file the returns and obtain the certificates, and keep the registration and the employee data current with the changes.