Professional Tax – 2025
Professional Tax in India:
The state levies a professional tax on enterprises, professionals, freelancers, and salaried workers. Despite the comparatively tiny sum, non-compliance may result in fines and legal issues.
This blog post from Legal Darbar will explain professional tax, who is responsible for paying it, state-by-state rates, and how your company may easily stay in compliance with our assistance.
What is Professional Tax?
Professional Tax is a tax levied by the state government on income earned through profession, trade, employment, or business. It is governed by the respective State’s Professional Tax Act and is deducted monthly from your salary (if you are salaried) or paid periodically by professionals or businesses.
Who is Liable to Pay Professional Tax?
The following categories are liable:
Salaried employees (deducted by employer)
Self-employed professionals like lawyers, doctors, CAs
Freelancers and consultants
Businesses, firms, and LLPs (who also need to register and deduct for employees)
Traders, contractors, agents, and other professionals
Employers must register and obtain a Professional Tax Registration Certificate (PTRC) and a Professional Tax Enrollment Certificate (PTEC).
Due Dates for Professional Tax:
The due dates vary based on registration and state, but typically:
Monthly payment: By last day of the month
Annual payment (if applicable): By 31st March
Return filing: Monthly, quarterly, or annually depending on state and number of employees
Late payment attracts penalties and interest, so staying on time is crucial.
Documents Required for Professional Tax Registration:
PAN Card of business
Proof of business address
Certificate of Incorporation / Partnership deed
Employee details (for PTRC)
Aadhaar, PAN & photos of directors/owners
Bank details of the business
Why Professional Tax Compliance is Important:
Avoid fines and interest charges
Required for government tenders and contracts
Necessary for business licenses and renewals
Helps build credibility with clients and authorities
Legal obligation in PT-active states
How Legal Darbar Can Help:
At Legal Darbar, we simplify the entire professional tax process:
Fast & affordable PT registration
Help in filing monthly/annual PT returns
Expert compliance support
Timely reminders for payments and due dates
100% legal support for notices or penalties
Conclusion:
Professional Tax may be small in value but big in legal significance. If you’re a business owner, professional, or freelancer in a PT-applicable state, it’s essential to stay compliant to avoid fines and build trust.
Let Legal Darbar handle your registration, filing, and compliance — so you can focus on your work while we take care of the legalities.
Frequently Asked Questions (FAQs):
No. Only certain states like Maharashtra, Karnataka, Gujarat, and West Bengal impose professional tax. States like Delhi, Haryana, and Uttar Pradesh do not.
The employer is responsible for deducting PT from the employee’s salary and depositing it with the state government.
Yes, salaried individuals can claim PT deduction under Section 16(iii) of the Income Tax Act.
Penalties vary by state but can include a late fee (e.g., ₹5/day), interest on outstanding tax, and even prosecution in some cases.
PTRC: For employers to deduct and pay tax on behalf of employees
PTEC: For businesses or professionals to pay PT for themselves