Profession Tax Registration
Instituted by the State, Professional Tax (PT) is levied on the income earned by the employees for delivering their services. We experts will help you get Registered under Professional Tax online.
- Expert-guided online professional tax registration(PTEC & PTRC) in India
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Table of Content
- Profession Tax Registration – Overview
- Professional Tax Applicability
- Professional Tax Applicable States across India
- States Without Professional Tax
- Professional Tax Rate
- Who Pays Professional Tax (PT)?
Profession Tax Registration – Overview
Profession Tax (PT) is a state-level tax levied on individuals and businesses for engaging in a profession, trade, or employment. It is mandatory in several Indian states, with each state having its own tax rates and registration process.
Key Points
Public limited companies are broadly categorised into two distinct types:
1. Who Needs Registration
- Employers: Must deduct PT from employees’ salaries
- Self-Employed Professionals: Must register and pay based on their income.
2. Tax Rates
- Varies by state and income level, with different slabs for salaried employees and professionals.
3. Registration Process
- Employers register with the state tax authority and get a PT number.
- Self-employed professionals also register with the state’s tax department.
4. Exemptions:
- Certain individuals (e.g., low-income earners, senior citizens) may be exempt.
5. Penalties
- Non-compliance can lead to fines or legal issues.
In short, PT is an income-based tax and ensures that businesses and professionals comply with state tax laws.
Professional Tax Applicability
Professional Tax (PT) Applicability:
1. Salaried Employees: PT applies if the salary exceeds the state’s exemption limit. Employers deduct and remit the tax.
2. Self-Employed Professionals: Individuals like doctors, lawyers, and freelancers must pay PT based on their income.
3. Businesses/Employers: Required to deduct PT from employee salaries and remit it to the state.
4. State-Specific: Each state has different tax slabs and exemption criteria.
Exemptions: Low-income earners, senior citizens, and in some cases, women may be exempt.
Non-compliance can lead to penalties.
FAQs for Professional Tax Registration
PT is a state-level tax levied on individuals or businesses for practicing a profession, trade, or employment. The amount depends on income and the state’s rules.
Salaried employees, self-employed professionals, business owners, and freelancers are required to pay PT, based on income and state-specific rules.
PT is calculated based on the income slab set by each state. It may range from ₹175 to ₹2,500 per month for salaried employees, and it depends on professional income for self-employed individuals.
No, PT is not applicable in all states. States like Delhi, Uttar Pradesh, and Haryana do not have PT, while states like Maharashtra and Karnataka impose it.
If the business employs more than 20 employees, PT is due monthly by the 15th of the next month. If there are less than 20 employees, PT is paid quarterly.
You can register for PT online through your state's tax portal, fill out the application form, upload the necessary documents, and submit for approval.
Yes, most states provide an online payment system for PT. You can pay through the state’s tax portal or authorized banks.
Penalties for late payment range from 1% to 2% per month, and additional interest may be charged. Some states also impose a fine for non-compliance.
Documents include PAN Card, Proof of Identity (Aadhaar, Passport), Proof of Address (utility bills), and employee details (for employers).
Low-income individuals, senior citizens, women (in some states), and persons with disabilities may be exempt from PT, depending on the state.
No, employees do not need to file PT returns. Employers are responsible for filing and remitting PT on behalf of their employees.
Yes, employers are required to deduct PT from an employee’s salary and remit it to the state government on the employee's behalf.
Yes, businesses must deduct PT from employees’ salaries and remit it to the state government.
Failure to register for PT may lead to fines, penalties, and potential revocation of registration for the business.
Yes, employers are required to deduct Professional Tax from employees' salaries and remit it to the state government.
If PT is not paid on time, a penalty of 1%–2% per month and interest may be charged, along with a fine for non-compliance.
Yes, if your business has less than 20 employees, PT can be paid quarterly, usually by the 15th of the next month after the quarter ends.
Yes, freelancers and self-employed professionals are required to pay PT based on their income, depending on the state.
No, PT is only applicable in certain states. States like Delhi, Uttar Pradesh, and Haryana do not have PT.
You can check your PT dues by visiting the respective state’s tax portal or by contacting the local tax office. Many states provide online services for checking dues.
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
EPF
Registration
Profession Tax Registration
startup India Registration
