Professional Tax Registration
Professional Tax (PT) is a tax levied by State Governments in India on the income earned by professionals, salaried employees, freelancers, traders, and other individuals engaged in various professions.This tax is governed by state-specific laws, and the rates, thresholds, and compliance requirements can vary from one state to another.Employers are responsible for deducting Professional Tax from their employees’ salaries and remitting it to the respective State Government. For self-employed professionals, traders, and freelancers, it must be paid directly to the state’s tax department based on the applicable slab rates.
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INTRODUCTION
What is Professional Tax Registration?
Professional Tax is a tax levied by state governments on individuals and entities engaged in professions, trades, and employment. Any person earning an income through salary, or practicing a profession such as chartered accountancy, company secretaryship, legal consultancy, or other professional services, is liable to pay professional tax.
For the purpose of compliance, Professional Tax Registration is mandatory for employers, employees, traders, and professionals, subject to the respective state’s laws.
Employers are responsible for deducting professional tax from their employees’ salaries and remitting it to the state government. This amount is then allowed as a deduction from the total taxable income.
Each state has its own rules, slab rates, and registration process for professional tax. Therefore, the applicable rates and timelines vary depending on the location of the business.
There are generally two types of Professional Tax registrations:
✅ PTEC (Professional Tax Enrollment Certificate) — For individuals, professionals, and businesses (like proprietors, traders, and professionals) to pay tax on their own income.
✅ PTRC (Professional Tax Registration Certificate) — For employers to deduct and pay professional tax on behalf of their employees.
Advantage
Benefits of Professional Tax Registration in India
Be Compliant
Professional Tax Registration ensures that your business stays compliant with the applicable state laws and regulations. This helps you run your operations smoothly without any legal hassles.
Safeguard Against Penalties
Registering for and paying professional tax on time protects employers and employees from heavy fines and penalties that may arise due to non-compliance.
Nominal Payables
Professional tax rates are quite reasonable. The tax amount is structured according to different salary slabs, ensuring that the burden on taxpayers — whether employees or self-employed professionals — remains minimal.
A LIST OF DOCUMENTS
📄 Documents Required for Professional Tax Registration
Make your Professional Tax Registration hassle-free by keeping these documents ready:
✅ ID Proof
A self-attested copy of the PAN Card or valid ID proof of the proprietor, partner, or director.
✅ Address Proof
A self-attested copy of the proprietor’s, partner’s, or director’s address proof.
Tip: Include the Shop & Establishment Certificate if your business is registered under it.
✅ Passport Size Photographs
Three recent passport-size photographs of the proprietor, partner, or director.
✅ Business Incorporation Documents
Copies of relevant incorporation papers, such as:
Partnership Deed (for partnership firms)
LLP Agreement (for LLPs)
Memorandum & Articles of Association (for companies)
Registration Certificate (if available)
Having these documents handy will ensure a smooth and timely Professional Tax Registration process.
✅ Complete Professional Tax Registration in 3 Easy Steps
1. Answer Quick Questions
🕒 Spend less than 10 minutes to fill out our simple questionnaire.
📄 Provide basic details and upload the required documents.
💳 Make a secure payment through trusted payment gateways.
2. Experts are Here to Help!
🤝 Get a dedicated Relationship Manager to guide you through the entire process.
📝 Our experts will prepare and verify your application.
📑 We’ll file your application with the concerned State Department for Professional Tax Registration.
📃 Receive your Professional Tax Registration Certificate once approved.
3. Your Business is Registered!
⏱️ It typically takes 10–15 working days to get your Professional Tax Registration*
*Subject to Government processing time.
📌 Process of Professional Tax Registration Online
✔️ Day 1
• Consultation on your registration requirements.
• Collection of basic information.
• Provide the necessary documents.
✔️ Day 2–4
• Preparation of the registration application.
• Submission of the application for Professional Tax Registration.
✔️ Day 5 onwards
• Processing by the Government Department.
✔️ Day 15
• Receive your Professional Tax Registration Certificate.
Frequently Asked Questions
Have questions before reaching out? Here are quick answers to some of the most common queries we receive about contacting us, consultations, and service inquiries.
The responsibility to obtain Professional Tax Registration lies with the business owner or employer. The employer must deduct the professional tax from employees’ salaries, based on the applicable state tax slab, and deposit it with the Government by the 15th of each month or quarter, as applicable.
The Enrolment Certificate, also known as the Professional Tax Enrolment Certificate (PTEC), is required for paying professional tax on behalf of the business or profession.
Employers must obtain a Professional Tax Registration Certificate (PTRC) when they hire employees. This certificate authorizes the employer to deduct professional tax from employees’ salaries. It must be obtained within 30 days of hiring staff.
Professional Tax is levied in the following states:
Punjab, Bihar, Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Sikkim, Kerala, Meghalaya, Odisha, Tripura, and Madhya Pradesh.
The maximum professional tax payable by an individual is ₹2,500 per annum. The exact amount depends on your state’s slab rates and is usually deducted monthly from the employee’s salary.
Yes. If your business operates from multiple locations, you must submit a separate application for Professional Tax Registration for each place of work, as required by the respective state authority.