Overview of Professional Tax Provisions
State governments levy a tax on businesses that employ people in certain professions. Professional tax is levied on those who earn their living as consultants, accountants, lawyers, secretaries, and others in similar roles.
Employers, professionals, traders, and other business entities are all included in the eligible criteria of Professional Tax Registration Online.
The employee's salary is lowered by this professional tax amount before it is paid out, and this amount can be deducted from the taxpayer's taxable income later on. Employers and company owners need to register with the appropriate municipal corporation for professional tax registration online.
Due to the varying tax rates and procedures required by each state, registration is handled differently depending on where it is being done. The professional tax registration online can be further subdivided into PTEC and PTRC registrations.
Types of Professional Tax Registrations
PTEC stands for Professional Tax Enrolment Certificate and PTRC stands for Professional Tax Registration Certificate.
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PTEC Registration: PTEC enables both the professional and the business owner to pay their professional taxes.
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PTRC Registration: Employers are permitted under PTRC to withhold professional tax from their employees' salaries and remit it to the government.
Important Note : The Company and LLP will only need to pay PTEC and not PTRC and Directors and Partners if there are no payable employees.
Know about the Professional Tax Rates :
The rate of professional tax differs from state to state because it is a state subject. While some governments may assess it as a percentage, others usually impose a flat fee depending on income slabs.
Professional Tax Rates in Major States
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Professional Tax Rate in Andhra Pradesh
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Less than Rs. 15,000 |
Nil |
| Rs. 15,000 to less than Rs. 20,000 |
Rs. 150 |
| Rs. 20,000 and above |
Rs. 200 |
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Professional Tax Rate in Gujarat
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Up to Rs. 5999 |
Nil |
| Rs. 6000 to Rs. 8999 |
Rs. 80 |
| Rs. 9000 to Rs. 11999 |
Rs. 150 |
| Rs 12000 and above |
Rs. 200 |
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Professional Tax Rate in Karnataka
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Up to Rs. 15,000 |
Nil |
| Rs. 15,001 onwards |
Rs. 200 |
Professional Tax Rate in Kerala(Half yearly income slabs and half yearly tax payment)
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Up to Rs. 11,999 |
Nil |
| Rs. 12,000 to Rs. 17,999 |
Rs. 120 |
| Rs.18,000 to Rs. 29,999 |
Rs. 180 |
| Rs. 30,000 to Rs. 44,999 |
Rs. 300 |
| Rs. 45,000 to Rs. 59,999 |
Rs. 450 |
| Rs.60,000 to Rs. 74,999 |
Rs. 600 |
| Rs.75,000 to Rs. 99,999 |
Rs. 750 |
| Rs.1,00,000 to Rs. 1,24,999 |
Rs. 1000 |
| Rs.1,25,000 onwards |
Rs. 1250 |
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Professional Tax Rate in Maharashtra
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Up to Rs. 7,500 |
Nil (for male) |
| Up to Rs. 10,000 |
Nil (for female) |
| From Rs. 7,500 to Rs. 10,000 |
Rs. 175 (for male) |
| Rs. 10,000 onwards |
Rs. 200 for 11 months + Rs. 300 for 12th month |
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Professional Tax Rate in Telangana
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Up to Rs. 15,000 |
Nil |
| Rs. 15,001 to Rs. 20,000 |
Rs. 150 |
| Rs. 20,001 onwards |
Rs.200 |
| Up to 5 years (For professionals suchas legal practitioners, CA, architects, etc.) |
Nil |
| Over 5 years (For professionals such as legal practitioners, CA, architects, etc.) |
Rs. 2,500 (per annum) |
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Professional Tax Rate in West Bengal
| Income per Month |
Tax Rate/Tax Amount (p.m.) |
| Up to 10,000 |
Nil |
| 10,001 to 15,000 |
Rs. 110 |
| 15,001 to 25,000 |
Rs. 130 |
| 25,001 to 40,000 |
Rs. 150 |
| 40,001 and above |
Rs. 200 |
Benefits of Professional Tax Registration Online
- Professional tax payments made by workers are eligible for deductions under Section 16 of the Income Tax Act, 1995. Any payments made by a taxpayer in the same tax year are eligible for deductions in that same year.
- As enrollment in Professional Tax is required by law, failing to do so may result in fines and penalties that may escalate over time.
- Professional Tax law is straightforward, and applications for Registration can be processed swiftly.
- The money collected from professionals' taxes is used by state governments to fund various social and economic initiatives.
- The impact on taxpayers is minimal since, according to the state administration, the taxes withheld are minimal and are set according to a salary range.
Are there any penalties in Case of Violation of Professional Tax Regulation ?
Once again, the penalties for failing to get Professional Tax Registration or failing to pay the professional taxes within the due date each month vary depending on the state in the country. However, in most cases, a penalty of Rs. 5 per day is imposed in case of failure to obtain Professional Tax Registration Online. For any professional tax payments made after the due date, 10% interest will be added to the total amount owed.
Document Requirement for Professional Tax Registration Online :
- Certificate of Incorporation like MOA, AOA in case of Private Limited Company or LLP Agreement in case of LLP Company
- PAN card of the Company/LLP (attested by the Company Director)
- Bank account details of the Company with a bank statement and cancelled cheque
- Proof of Registered Office along with a NOC from the premise owner
- Board Resolution or the Declaration of consent by the concerned Partner
- Address proof, PAN card and passport size photos with the signature of all the Directors
- Salary and attendance register
- Shop & Establishment Registration Details