Professional Tax Registration
Professional Tax Registration with NR Filing
Professional Tax is a direct tax levied by State Governments or Union Territories on individuals earning income through employment, profession, trade, or calling. Unlike Income Tax, which is administered by the Central Government, Professional Tax varies from state to state.
For salaried employees, the employer is responsible for deducting Professional Tax from the salary or wages and depositing it with the respective state authority. Self-employed professionals and individuals engaged in trades must register and remit this tax directly.
Applicability of Professional Tax
Professional Tax applies broadly to the following entities:
- Individuals
- Hindu Undivided Families (HUFs)
- Companies, Firms, Co-operative Societies, Associations of Persons (incorporated or unincorporated)
Professionals such as lawyers, doctors, teachers, chartered accountants, and others earning income through services or business must obtain Professional Tax Registration and comply with payment regulations.
States Where Professional Tax is Applicable
Applicable States | Non-Applicable States |
Andhra Pradesh | Andaman and Nicobar Islands |
Assam | Arunachal Pradesh |
Bihar | Chandigarh |
Gujarat | Chhattisgarh |
Jharkhand | Dadra and Nagar Haveli |
Karnataka | Daman and Diu |
Kerala | Delhi |
Madhya Pradesh | Goa |
Maharashtra | Haryana |
Manipur | Himachal Pradesh |
Meghalaya | Jammu and Kashmir |
Mizoram | Ladakh |
Nagaland | Lakshadweep |
Odisha | Rajasthan |
Pondicherry | Uttar Pradesh |
Punjab | Uttarakhand |
Sikkim |
|
Tamil Nadu |
|
Telangana |
|
Tripura |
|
West Bengal |
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Professional Tax is levied on a slab basis, depending on the gross income of the professional, with a maximum annual liability of INR 2,500. The tax may be deducted monthly or paid annually, as per the regulations of the Commercial Taxes Department of the respective state or UT.
- Employers must deduct Professional Tax from the salaries of their employees and remit the collected amount to the state government.
- Self-employed professionals must register and pay Professional Tax directly to the state authority.
Employer’s Obligations
Employers are mandated to:
- Deduct Professional Tax from employee salaries timely
- Deposit the tax with the relevant government department within prescribed deadlines
- File returns with proof of payment in the specified formats
- Maintain compliance to avoid penalties for delayed payments or non-filing
Exemptions from Professional Tax
Certain individuals are exempt from Professional Tax and are not required to obtain registration, including:
- Parents or guardians of children with permanent physical or mental disabilities
- Members of the armed forces as defined under respective Acts
- Badli workers in the textile industry
- Persons with permanent physical disabilities (including blindness)
- Women engaged exclusively as agents under specific government savings schemes
- Senior citizens above 65 years of age
Registration for Professional Tax must be completed:
- Within 30 days of employing staff in a business
- Within 30 days of commencing professional practice for self-employed persons
If a professional operates in multiple locations, separate registrations must be obtained for each jurisdiction.
Due Dates for Payment and Filing
- Employers with more than 20 employees must remit Professional Tax monthly within 15 days from the end of each month.
- Employers with less than 20 employees may pay quarterly, with the due date being the 15th of the month following the quarter end.
- Professional Tax Returns must be filed in accordance with state-specific timelines.
persons
If a professional operates in multiple locations, separate registrations must be obtained for each jurisdiction.
- Certificate of Incorporation / LLP Agreement
- Memorandum & Articles of Association (MOA & AOA)
- PAN Card (Company/LLP/Individual)
- NOC from the landlord (business premises)
- Passport-size photographs of Proprietor/Director/Owner
- Identity and address proof of Proprietor/Director/Owner
- Details of employees and salary structure
- Copies of other relevant licenses and registrations
- Submit the application form with required documents to the concerned state tax authority.
- Each place of business requires a separate application if multiple locations exist.
- The tax department scrutinizes the application and verifies the details.
- Upon successful verification, a Professional Tax Registration Certificate (PTRC) is issued.
NR Filing offers end-to-end assistance to simplify your Professional Tax registration and compliance needs:
- Expert Guidance: In-depth knowledge of state-specific Professional Tax regulations to ensure compliance.
- Application Handling: Complete management of registration application and submission.
- Timely Processing: Efficient follow-up with authorities to expedite certificate issuance.
- Tailored Support: Customized services aligned with your business size and profession.
- Compliance Monitoring: Keep up with changes in tax laws and ensure timely filings.
- Dedicated Customer Service: Prompt resolution of queries and support throughout the registration process.
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