Licenses & Registrations
Professional Tax Registration: Who Pays, Rates & State Rules
Professional Tax (PT) is a state-level tax levied on salaried employees and professionals (doctors, lawyers, CAs, freelancers, business owners). It's deducted by employers from salaries and deposited with the state. Not all states levy it — but where applicable, registration is mandatory.
Two registrations you may need
- PTEC (Enrolment Certificate): For the business/professional to pay their own PT.
- PTRC (Registration Certificate): For employers to deduct and deposit PT from employees' salaries.
Which states levy professional tax?
Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Andhra Pradesh, Telangana, Madhya Pradesh and others. Delhi, Haryana and UP do not levy it. The maximum PT capped by law is ₹2,500 per year.
Documents required
- PAN of business/individual
- Address proof and ID proof
- Employee details and salary data (for PTRC)
- Cancelled cheque
Filing & due dates
Employers deduct PT monthly and file returns as per the state schedule (monthly/annually). Late payment attracts interest and penalty, so set reminders.
FAQs
Is PT deductible in income tax? Yes — professional tax paid is deductible from salary income under Section 16(iii). See our tax regime guide.
Do freelancers pay PT? In PT states, yes — via PTEC enrolment.
Taxwapsi sets up PTEC/PTRC and manages monthly PT filings for you.