What Is Professional Tax?
Professional Tax is a state‑levied tax on income earned through employment, profession, trade, or business in India. It applies across selected states and is mandated under Article 276 of the Constitution. While the maximum annual liability is capped at ₹2,500, individual state slabs determine actual monthly/annual dues
Who Is Liable?
Salaried employees (deducted by the employer)
Self employed professionals (e.g., doctors, lawyers, freelancers)
Business owners, firms, associations—anyone generating professional/business income in states where PT is applicable
State Coverage & Slab Variations
Professional tax is levied in many states including Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Gujarat, Kerala, Telangana, and others. States like Delhi, Uttar Pradesh, Goa, and several union territories do not impose it perfectaccounting.in. Each state follows its own slab structure—e.g., in Maharashtra someone earning above ₹10,000/month typically pays ₹200 per month
Compliance Workflow: 4 Essential Steps
According to the best-in-class approach, professional tax compliance follows a 4-step process
01.
Registration
- Employers: Register for a Professional Tax Registration Certificate (PTRC) to enable monthly salary deductions.
- Self-employed persons: Obtain a Certificate of Enrolment (sometimes called PTRC/PTEC).
Documents typically required: PAN, business identity, address proof, proof of employment or profession, canceled cheque, etc
02.
Deduction / Calculation
- Employers deduct professional tax from each salary as per state slabs.
- Self‑employed professionals calculate dues based on income brackets and payment frequency (monthly/quarterly/annual). Maximum allowed is ₹2,500/year
03.
Payment (Remittance)
- Payment can be made via state e‑portals or offline at designated banks.
- Due dates vary—monthly dues are often payable by the 10th–30th of following month; annual returns for professionals may be due by end-April/May
04.
Returns Filing & Recordkeeping
- Returns are required monthly, quarterly, or annually, depending on the state.
- Submit forms with payment proof, employee details, and maintain records for at least 5 years.
Penalties for Non Compliance...
Failing to comply can attract:
- Late registration fines, often ₹5/day.
- Late payment penalties, typically ~10% plus interest.
- Late filing fees, ranging ₹1,000–₹2,000+ depending on frequency and state. Maharashtra, for instance, has specific fine structures
RNPS Services: Your Compliance Partner
At RNPS Services—recognized experts in Payroll, PF & ESI advisory—we simplify professional tax compliance for businesses and professionals across India. Our services include:
- Local registration support: PTRC/Enrolment in applicable states
- Payroll integration: Seamless calculation and salary deductions for employees
- Payment assistance: Generating challans, e payments, and confirmations
- Returns management: Timely filing of professional tax returns as per each state's schedule
- Compliance advisory: Guidance on state-specific exemptions, slab changes, and due dates
- Penalty mitigation: Notifications and compliance tracking to avoid late fees
Why Choose RNPS Services?
- Expertise in statutory compliance—PF, ESI, payroll and more
- End-to-end compliance—registration → calculation → payment → filing
- Multi-state reach—we handle regional variations with ease
- Time-saving—let RNPS manage the paperwork while you focus on your core business
F.A.Q.
Check your state’s commercial tax department. RNPS can verify for you.
Yes—professional tax is deductible under Section 16(iii) of the IT Act.
RNPS handles multi-state compliance, with separate registrations and returns as needed.
We keep track of state-specific rules—e.g. senior citizens, disabled persons, etc.
Keep payment receipts, enrolment certificates, returns, and employee-wise details for at least 5 years.
Get Started Today....
Don’t risk penalties or compliance gaps—partner with RNPS Services for complete and stress-free professional tax management.
Contact us for:
- Free compliance assessment
- Custom quote based on your profile
- Assistance setting up payroll & deduction systems
- Annual or monthly service packages