Professional Tax Registration

Professional Tax (PT) is a tax levied by state governments in India on individuals who earn income from salaries, professions, trades, or employment.

·         It is not a central tax, it’s state-specific (each state has its own rules, slabs, and rates).

·         It is deducted by employers from salaries of employees every month and paid to the state government.

·         Self-employed professionals (like doctors, lawyers, accountants) also have to pay it directly.

Key points:      

·         Maximum PT is capped at ₹2,500 per year in most states.

·         It’s a statutory requirement; failing to pay can lead to penalties.

·       Salaried employees – PT is deducted from your salary by the employer.

·       Professionals & self-employed persons – they pay PT directly to the state government.

·       Employers – are responsible for collecting and depositing PT for their employees.

 · Register for Professional Tax:

·         Employers must register with the Professional Tax  

·         After registration, they get a PT registration number.   

   · Deduct PT from Employee Salary:

·         Based on salary slab applicable in that state.

   · Deposit PT to State Government:

·         Payment is usually monthly or quarterly, depending on the state.

·         Payment is made online or via bank challan.

    · File PT Returns:

·         Employers submit PT returns periodically (monthly, quarterly, or annually) in the prescribed format.

·         Returns show how much PT was deducted and deposited.

·       It’s deductible under Income Tax Section 16 for salaried employees.

·       Helps state governments raise revenue for  local welfare schemes. 

·       Delay in deposit or return filing → penalty/interest

·       Not deducting PT from employees →employer liable

·       Non-registration → fines and legal action

1. Check if PT is applicable in your state
·         Visit your website. state’s commercial taxes or professional tax department

2. Collect required documents
For companies or employers:

·         TAN (Tax Deduction Account Number)

·         List of employees with their salaries

For individual professionals:

·         Proof of professional qualification

·         Most states provide online forms. Example forms:

    Maharashtra: Form PT-1

    Karnataka: Form REG-1

·         Upload documents online (if applicable) or submit physically at the State Professional Tax Office.

·         Once approved, you will get a PT Registration Certificate with a unique number.

·         Employers must deduct PT from employees’ salaries every month as per state slabs.