An Overview of Professional Tax

Last Updated On: July 10, 2021, 11:34 p.m.
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PROFESSIONAL TAX

Meaning:-

Professional tax is a tax that is levied by a state government on all salaried individuals, working in government or non-government entities, or in practice of any profession, including Chartered Accountants, Doctors, Lawyers etc or carry out some form of business. 

The calculation and amount collected may differ from one state to another but it has a limit of Rs. 2500 per year.

 

Professional Tax Applicability:

Professional Tax is applicable for the below-mentioned individuals and entities:

  • Companies
  • Firms
  • LLPs
  • Corporation
  • Societies
  • HUF
  • Associations
  • Clubs
  • Legal practitioners such as solicitors
  • Contractors
  • Architects
  • Engineers
  • Insurance agents
  • Chartered Accountants
  • CS
  • Surveyors
  • Tax consultants
  • Management consultants
  • Medical representatives such as doctors, medical consultants, and dentists

 

Different slab rate in different states

Professional Tax in Maharashtra

Monthly Salary

Amount payable in Maharashtra

Less than Rs. 7500

NIL

Rs. 7501 to Rs. 10000

Rs. 175 pm

Rs. 10001 & above

Rs. 200 pm except for the month of Feb
Rs. 300 for the month of Feb

 

Professional Tax in Karnataka

Monthly Salary Amount payable in Maharashtra

Less than Rs. 15,000

NIL

Rs. 15,000 & above

Rs. 200 per month

 

Professional Tax in West Bengal

Monthly Salary Amount payable in Maharashtra

Less than Rs. 8500

NIL

Rs. 8501 to Rs. 10000

Rs. 90 pm

Rs. 10001 to Rs. 15000

Rs. 110 pm

Rs. 15001 to Rs. 25000

Rs. 130 pm

Rs. 25001 to Rs. 40000

Rs. 150 pm

Rs. 40001 & above

Rs. 200 pm

 

Professional Tax in Madhya Pradesh

Monthly Salary Amount payable
Less than Rs. 18,750 NIL

Rs. 18,750 to Rs. 25,000

Rs. 125 pm
Rs. 25,001 to Rs. 33,333 Rs. 167 pm

Rs. 33,334 & above

Rs. 208 from April to Feb & Rs. 212 in March

 

Professional Tax in Tamil Nadu

Monthly Salary

Amount payable in Tamil Nadu

Less than Rs. 21000

NIL

Rs. 21000 to Rs. 30000

Rs. 135 pm

Rs. 30001 to Rs. 45000

Rs. 315 pm

Rs. 45001 to Rs. 60000

Rs. 690 pm

Rs. 60001 to Rs. 75000

Rs. 1025 pm

Rs. 75001 & above

Rs. 1250 pm

 

States and Union Territories where Professional Tax not applicable-

  • Arunanchal Pradesh
  • Andaman and Nicobar Island
  • Chandigarh
  • Chhattisgarh
  • Ladakh
  • Jammu & Kashmir
  • Dadra & Nagar Haveli
  • Daman & Diu
  • Delhi
  • Haryana
  • Lakshadweep
  • Rajasthan
  • Uttaranchal
  • Uttar Pradesh

 

Meaning of Professional Tax Certificate

There are two types Professional tax certificates:

  1. PTEC (Professional Tax Enrollment Certificate): This is paid by the business entity, owner or a professional i.e. Private/ Public Limited Company, Sole Proprietor, Director Etc.
  2. PTRC: (Professional Tax Registration Certificate): Government or Non- Government employer deducts the tax from the employee’s wages and deposit the same to the government.

 

Documents required for Registration

  1. Acknowledgement of the online form, along with the print out of the digital form submitted.
  2. Copy of PAN Card.
  3. PAN Card and Aadhar Card of Director.
  4. Residence proof of Partner, Director, Proprietor.
  5. List of directors, Passport size photographs of all directors, Id proof.
  6. Proof of Constitution of business like Certificate of Incorporation.
  7. Address proof of Business place and NOC from owner of such premise.
  8. Blank Cancelled Cheque.
  9. Establishment Certificate.
  10. PAN& PTEC details.
  11. Board resolution or consent statement of partner.
  12. Attendance register and salary Register
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