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Professional Tax' is a tax amount levied by State Governments in India on salaried employees and professionals, including Chartered Accountants, Lawyers, Doctors, Employers, Director of companies, etc
The professional tax calculation and amount varies from one state to another, but it has a maximum limit which is capped to Rs 2500/- per year. It may be noted that professional tax is a deductible amount for the purpose of the Income-tax Act, 1961 and can be deducted from taxable income
• Registration is mandatory within 30 days of employing staff in an establishment or, in the case of professionals, 30 days from the start of the practice.
•When a new branch office is opened in any other state, and where the Professional Tax act is applicable, then registration is mandatory within 30 days of employing staff in an establishment.
•There is no minimum staff requirement, Professional tax act is applicable when the first staff joins the company.
•Registration process differs from state to state, It happens online without any physical document submission, and for few state manual intervention with concern authorities are still required
•Registration of any establishment will be in two parts, PTRC and PTEC. A company usually requires both of this registration to conduct business
•The Deduction should be done from monthly salary on the wages paid amount of the employees
•If you have employees in more than one state, you will deduct Profession Tax as per state applicable rate, and this rate will vary state wise. Click here or scroll below : PayHR Professional Tax Rates
•The amount of deduction or payment for year should not exceed Rs 2500/-
•The slab rates for some state is half-yearly, in such cases deduct proportionate monthly amount based on applicable slab rates
•The payment process is online for most states which are done through registered employer login. For those where no option of online payment is available, it should be managed manually challan and forms as per state prescribed
•Once the payment is made, the next step is filing return, which happens online for most states and is done through registered employer login. In some states returns are pre-filed before making payments online
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•This point is very crucial which most employers missed and lead to pay penalty and interest
•The state where the annual tax limit is fixed, like in Maharashtra if annual tax payment is below Rs 1 Lacs then the payment and return are managed annually in March, for previous years March onwards to February. Example in March 2020 the payment and return will be for March 2019 to February 2020
•When the company register for the first time, the payment and return should be done monthly
•State like Tamil Nadu, Kerala, etc half-yearly payment and return is applicable
•For payments and returns due date, Refer PayHR Professional Tax Rates
Exemptions is provided to certain individuals as per Professional Tax Rules
•Parents of children with permanent disability or mental disability
•An individual suffering from a permanent physical disability (Including blind)
•A person, above 65 years of age
•Members of the forces as defined by the "Army Act 1950", the "Air Force Act, 1950" and "The Navy Act, 1957"
•Will be liable to a penalty and interest for the period during which remains unregistered and unpaid
•The officials have the power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach a bank account. In serious cases, the prosecution case also can be filed
| PTRC | PTEC |
|---|---|
Professional Tax Registration Certificate |
Professional Tax Enrolment Certificate |
This certificate is obtained by an employer to deduct and deposit professional tax from employees’ salary |
This certificate is obtained by an employer to pay their own professional tax, as well as by professional practitioners such as CA's, Doctors, Advocates, Architects, Directors, Partners, etc. to pay their own professional tax |
On completion of registration website credential is received through which monthly payments(PTRC & PTEC) and returns(PTRC) is managed |
This will be part of PTRC registration for which the employer will only make PTEC payment online. No return required |
The process of Registration is different for each state. Fill the online form and uploaded few mandatory company-related documents electronically on to the state specified website |
The process of Registration is different for each state. Fill the online form and uploaded few mandatory company-related documents electronically on to the state specified website |
The Payment and return should be managed monthly or half-yearly as per state act |
The payment should be done annually as per the state act. Here there is not required to file any returns |
Click on the buttons inside the tab menu:..........Karnataka Professional tax slab last updated on 22/03/2023
Maharashtra Professional tax slab last updated on 25/03/2023
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 10000 | Nil |
| From 10,001 to 15,000 | 150 |
| From 15,001 to 25,000 | 180 |
| Above 25,000 | 208 |
| Yearly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 3 lacs | Nil |
| From 3 lacs to 5 lacs | 1,000 |
| From 5 lacs to 10 lacs | 2,000 |
| Above 10 lacs | 2,500 |
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 6,000 | Nil |
| From 6,000 to 9,000 | NIL wef 01/04/2022 |
| From 9,000 to 12,000 | NIL wef 01/04/2022 |
| Above 12,000 | 200 |
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 24,999 | Nil |
| From 25,000 & above Wef 01-04-2023 |
200 |
| Till 31-03-2023 the old slab was from 15,000/-, it was Rs.200 pm |
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 7,500 | Nil |
| From 7,501 to 10,000 | 175 (Nil for Female) |
| From 10,001 to 25,000 | 200(Rs 300 in February) (Nil for Female) |
| Above 25,000 | 200(Rs 300 in February) |
| Yearly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 50,000 | Nil |
| From 50,001 to 75,000 | 1,200 |
| From 75,001 to 1,00,000 | 2,000 |
| From 1,00,001 to 1,25,000 | 2,400 |
| Above 1,25,001 | 2,500 |
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 5,000 | Nil |
| From 5,001 to 8,000 | 75 |
| From 8,001 to 10,000 | 120 |
| From 10,001 to 12,000 | 150 |
| From 12,001 to 15,000 | 180 |
| Above 15,000 | 208 |
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 4,000 | Nil |
| From 4,001 to 5,000 | 35 |
| From 5,001 to 7,000 | 75 |
| From 7,001 to 9,000 | 110 |
| From 9,001 to 12,000 | 180 |
| Above 12,001 | 208 |
| Annual Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Upto 1,60,000 | Nil |
| From 1,60,001 to 3,00,000 | 1,500(Rs 125 pm) |
| Above 3,00,000 | 2,500(Rs 200 pm & Rs 300 in March) |
| Monthly Salary Slab (Rs) | PT Rates (Rs) |
|---|---|
| Annual projected salary/income is below 2.5 lacs | Nil |
| Annual projected salary is above 2.5 lacs | 200 pm |
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