What is Professional Tax (PT)?
Professional Tax is a direct tax levied by state governments on individuals and entities engaged in
professions, trades, or employment. Employers deduct PT from employees’ salaries, while self-employed
professionals pay it directly.
At N D Savla & Associates, we help businesses and professionals register for PT, stay compliant, and avoid penalties.
Professional Tax Applicability in India
- Individuals earning income through employment or business
- HUFs
- Companies, LLPs, Firms, and Co-operative Societies
- Self-employed professionals: doctors, lawyers, consultants, CAs, etc.
States Imposing Professional Tax
Applicable States: Maharashtra, Karnataka, Gujarat, Tamil Nadu, Andhra Pradesh, Telangana, etc.
Non-Applicable States: Delhi, Uttar Pradesh, J&K, Lakshadweep, Andaman & Nicobar Islands.
Why Professional Tax Registration Matters
Mandatory Compliance
Avoid penalties and ensure your business meets state PT rules.
Avoid Penalties
Timely registration prevents fines, interest, and legal consequences.
Tax Deduction Benefit
PT payments are deductible from income, reducing tax liability.
Smooth Business Operations
Compliance ensures your business runs without disruptions.
Employer Responsibility
Businesses with employees must deduct and deposit PT monthly or quarterly.
Legal Protection
Registered entities receive legal protection and structured compliance tracking.
Who Pays Professional Tax?
- Salaried employees: Employers deduct PT from salary.
- Self-employed individuals: Must register and pay PT themselves.
- Employers: Must deduct and deposit PT on employee salaries.
Professional Tax Exemptions
- Parents of children with disabilities
- Senior citizens (above 65 years)
- Members of the armed forces
- Certain women working under government schemes
Documents Required for PT Registration
- Certificate of Incorporation / LLP Agreement
- MOA & AOA
- PAN of the business
- NOC from landlord (if applicable)
- Identity & address proof of proprietor/director
- Employee details for PTRC/PTEC
- Passport-size photograph
Professional Tax Registration Process
- Application submission with required documents
- Verification by state PT department
- Issuance of PTRC/PTEC certificate
- Begin monthly or quarterly PT payments
Professional Tax Payment Due Dates
- More than 20 employees: Monthly payment (by 15th of next month)
- Less than 20 employees: Quarterly payment
PT Return Filing
Returns must be filed monthly, quarterly, or annually depending on state rules.
N D Savla & Associates ensures accurate and timely PT return filing to avoid penalties.
Penalties for Non-Compliance
- Late registration: ?5 per day
- Late return filing: Up to ?1,000
- Late payment: 1.25% monthly interest + penalty
Why Choose N D Savla & Associates?
- Expert PT consultants with state-specific knowledge
- Quick and efficient PT registration
- Timely payment reminders and compliance management
- Customized services for freelancers, SMEs, and corporations
- Avoid penalties with proactive compliance tracking