Professional Tax (PT) is a state-level tax levied on individuals earning income through employment, profession, trade, or calling. In Maharashtra, it is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. Every employer and self-employed professional in Maharashtra must comply with Professional Tax regulations or face penalties.
Who Must Register for Professional Tax in Maharashtra?
Employers (PTRC — Professional Tax Registration Certificate):
- ▸Every employer who has employees earning above ₹7,500 per month must deduct PT from salary and pay to the government
- ▸This applies to: Companies, LLPs, partnership firms, sole proprietors, trusts, hospitals, and any other employer in Maharashtra
Self-Employed Professionals (PTEC — Professional Tax Enrollment Certificate):
- ▸Every individual engaged in profession, trade, or calling — including:
- ▸Chartered Accountants, Company Secretaries, Doctors, Lawyers, Architects
- ▸Business owners (sole proprietors, partners, directors)
- ▸Consultants, freelancers above the threshold income
- ▸PTEC is paid as an annual lump sum tax by the professional/business owner themselves
Professional Tax Rates in Maharashtra (Employees)
| Monthly Salary (₹) | PT Deduction per Month |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 to ₹10,000 | ₹175 |
| ₹10,001 and above | ₹200 (₹300 in February — makes annual total ₹2,500) |
PTEC Rates for Self-Employed (Annual Payment)
| Category | Annual PT |
|---|---|
| Company / LLP registered in Maharashtra | ₹2,500 per year |
| Firm / Association of Persons | ₹2,500 per year |
| Individual proprietor with business in Maharashtra | ₹2,500 per year |
| Directors (if not on payroll) | ₹2,500 per year |
| Chartered Accountants, Advocates, Doctors | ₹2,500 per year |
PTRC Registration Process (for Employers)
- ▸Visit the Maharashtra Government's GST and PT portal: mahagst.gov.in
- ▸Click "New Dealer Registration" → Select "PT Registration"
- ▸Fill registration form with: PAN, Aadhaar, business address, number of employees
- ▸Upload: PAN card, address proof of business, incorporation certificate, Aadhaar of authorised signatory
- ▸Submit and pay registration fee (if applicable)
- ▸PTRC certificate issued within 7–15 working days
PTEC Registration Process (for Self-Employed)
- ▸Visit mahagst.gov.in
- ▸Select "Professional Tax Enrollment Certificate" registration
- ▸Fill details: profession type, PAN, Aadhaar, business address
- ▸Upload supporting documents
- ▸Pay ₹2,500 enrollment fee
- ▸PTEC certificate issued
Payment and Return Filing Schedule
PTRC (Employer) — Return Filing:
PTEC (Self-Employed) — Annual Payment:
- ▸Employers with annual PT liability above ₹1,00,000: Monthly returns — due by last day of the month
- ▸Employers with annual PT liability up to ₹1,00,000: Annual return — due by March 31
- ▸Pay ₹2,500 annually — due by June 30 of each financial year
- ▸Form: Form II-B on mahagst.gov.in
Exemptions from Professional Tax in Maharashtra
The following categories are exempt from PT in Maharashtra:
Note: Women earning up to ₹25,000 per month are also exempt from PT in Maharashtra as of recent government notification.
- ▸Parents/guardians of children with physical or mental disability
- ▸Persons above 65 years of age
- ▸Contract workers working only for temporary periods
- ▸Individuals earning solely from agriculture
- ▸Members of the armed forces
Penalties for Non-Compliance
- ▸Late registration: ₹5 per day for delayed PTRC/PTEC registration
- ▸Late payment of PT: 1.25% per month on unpaid tax amount
- ▸Non-filing of return: ₹1,000 penalty per return
- ▸Non-deduction from employee salary: Full tax amount + 2% per month interest
- ▸Hiding taxable employees: Can attract prosecution under the Act
Professional Tax in Other States
PT is applicable in multiple states — each with different rates and thresholds:
States where PT is not applicable: Rajasthan, Delhi, UP, Bihar, Haryana, J&K, HP.
- ▸Karnataka: ₹200/month for salary above ₹15,000
- ▸West Bengal: Up to ₹2,500/year
- ▸Andhra Pradesh & Telangana: Up to ₹2,500/year
- ▸Tamil Nadu: ₹75–₹1,250 per half year depending on income
- ▸Gujarat: Up to ₹2,500/year
Conclusion
Professional Tax compliance in Maharashtra is straightforward but mandatory for all employers and self-employed professionals. Registering under both PTRC (if you have employees) and PTEC (as a business owner or professional) is required. The total PT cost is modest — maximum ₹2,500 per person per year — but penalties for non-registration and late filing can accumulate quickly.
Biswa Corporate Solutions handles PTRC and PTEC registration, monthly/annual PT return filing, and ensures timely compliance for companies, LLPs, and individual professionals across Maharashtra.
