What is Professional Tax

Professional tax the tax by the state governments in India. Each state has a slab that it declares and the professional tax is deducted based on these slabs. These are some states and union territories that do not charge professional tax too. The Maximum amount Payable per year is 2500 and in line with the taxpayer’s salary, there are predetermined slabs. It is also payable by members of staff employes in private companies.

The [rpfessopma; tax is a source of revenue for the state governments which helps in the different implementations schemes for the welfare and development of the region.

Professional tax can be paid on monthly, quarterly, half yearly on yearly basis based on the state nature of the business and respective state laws.

The rules that govern professional tax  some of these rules are :

  • The company required two types of professional tax certificates
    • PTRC- Professional Tax Registration Certificate- role as an employer
    • PTEC- Professional tax Enrolment Certificate – so that company can deduct professional tax on salaries of a certain amount.
  • The certificate of Enrolment needs to be obtained within 30 days from the date on which becomes eligible to pay professional tax.
  • Employers can be penalized if they do not deposit the professional tax of their employees.
  • A separate application needs to be submitted for every office a company has, as per the requirement of the particular state where the place of work is situated
  • Foreign employees are not liable to pay Professional Tax
  • However, the rules applicable for professionals become applicable for Indians employed by any foreign diplomatic office, embassy or consulate, as these offices need not get a Certificate of Registration.

Delays in obtaining Registration Certificate, a penalty of Rs. 5/- per day. In case of non/late payment of profession tax, the penalty will be 10% of the amount of tax. In case of late filing of returns, a penalty of Rs. 1000 per return will be imposed if you filed after the due date in 1 month. After 1 month, a penalty of Rs. 2000 will be impose

Professional Tax in Various State in India.




Andhra Pradesh

Madhya Pradesh




West Bengal

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