What is professional tax?
Professional tax is a tax that state governments levy on professions, trades, callings and employment. For a salaried employee it is a small monthly deduction from salary; for a business or a professional it is a fixed yearly amount.
The Constitution caps it. Under Article 276(2), no state can charge any one person more than ₹2,500 a year. Every state schedule is built inside that limit, which is why annual totals in most states stop at ₹2,500.
Each state has its own Act, slabs, forms, portal and due dates. A business with offices in two states follows two sets of rules, and a state with no PT law, like Delhi, has nothing to file.
PTRC and PTEC: the two registrations
Most businesses in a PT state need two numbers: one to deduct tax from employees and one to pay their own tax.
| PTRC (registration certificate) | PTEC (enrolment certificate) | |
|---|---|---|
| Who holds it | Employers who pay salaries above the state's nil slab | Companies, LLPs, firms, proprietors, professionals and, in some states, directors |
| Whose tax | Employees' tax, deducted from salary | The holder's own tax |
| What you file | Periodic returns with the tax deducted | A yearly payment (and a return where the state requires it) |
| Amount | By salary slab, per employee | A fixed yearly amount, within the ₹2,500 cap |
A company therefore pays PTEC for itself and deducts PTRC tax from its staff. Getting the two confused leads to tax paid under the wrong number and notices later.
Which states levy professional tax?
Many states levy professional tax, but not all. The table shows the states we file in and the position in Delhi.
| State | Professional tax? | Registration fee | Where you file |
|---|---|---|---|
| Maharashtra | Yes | No government fee | MahaGST portal |
| Karnataka | Yes | No government fee | Karnataka Commercial Taxes Department portal |
| West Bengal | Yes | No government fee (₹20 only for a duplicate certificate) | West Bengal Directorate of Commercial Taxes portal |
| Delhi | No professional tax | Not applicable | Nothing to file |
If you have staff in another state, tell us. We confirm that state's law and slabs before we deduct anything.
Professional tax in Maharashtra
Maharashtra charges salaried employees by monthly salary slab, with a higher deduction in February so that the yearly total reaches ₹2,500. Businesses and professionals with a PTEC generally pay ₹2,500 a year.
Salary slabs
| Monthly salary | Men | Women |
|---|---|---|
| Up to ₹7,500 | Nil | Nil |
| ₹7,501 to ₹10,000 | ₹175 a month | Nil |
| ₹10,001 to ₹25,000 | ₹200 a month (₹300 in February) | Nil |
| Above ₹25,000 | ₹200 a month (₹300 in February) | ₹200 a month (₹300 in February) |
Women employees earning up to ₹25,000 a month have been exempt since 1 April 2023. Salary here means the gross monthly salary on which the state computes the slab.
Worked example. A male employee in Mumbai earns ₹30,000 a month. The employer deducts ₹200 from April to January and in March (11 months, ₹2,200) and ₹300 in February, a total of ₹2,500 for the year. A female colleague on ₹22,000 a month pays nothing; if her salary rises to ₹26,000 from October, deductions start from October's salary.
PTRC return: monthly or annual
How often you file depends on how much tax you deducted in the previous year:
- Tax of ₹50,000 or more in the previous year: monthly returns.
- Tax below ₹50,000: one annual return.
- First year of registration: monthly returns, whatever the amount.
Due dates from 28 February 2026
Maharashtra amended its rules so that due dates fall on the 15th instead of the end of the month.
| Obligation | Due date |
|---|---|
| PTRC monthly return and payment | 15th of the following month |
| PTRC annual return | 15 March of the financial year |
| PTEC yearly payment | 15 June of the financial year |
So the September 2026 monthly return is due by 15 October 2026, and PTEC for FY 2026-27 was due by 15 June 2026. If you missed it, pay now: interest keeps running until you do.
Professional tax in Karnataka
Karnataka exempts salaries up to ₹25,000 a month. Above that, the employer deducts ₹200 a month and ₹300 in February, a total of ₹2,500 a year.
| Monthly salary | Professional tax |
|---|---|
| Up to ₹25,000 | Nil |
| Above ₹25,000 | ₹200 a month (₹300 in February), ₹2,500 a year |
Businesses and professionals enrolled in Karnataka generally pay ₹2,500 a year per place of business, up from ₹2,400 before 1 April 2025. There is no government fee to register or enrol; you pay only the tax.
Return forms and due dates in Karnataka are set by the Commercial Taxes Department. We confirm the current filing cycle for your registration before the first return.
Professional tax in West Bengal: rates under revision
West Bengal levies professional tax on salaries and on businesses and professionals, within the ₹2,500 cap. The state's rates are being revised, with changes reported from 1 October 2026 for salaried employees.
We do not publish West Bengal slabs on this page until the revised schedule is confirmed from the notification. Before your October 2026 payroll, we check the notified slabs and apply them to each employee.
Registration and enrolment in West Bengal carry no government fee. A duplicate copy of either certificate costs ₹20.
Who must file a professional tax return?
Every employer registered under PTRC must file returns for the periods its state prescribes, including periods where the tax is nil if the state requires it. Every PTEC holder must pay its yearly tax by the due date.
- Private limited companies and LLPs: PTEC for the entity; PTRC if any employee's salary is above the nil slab.
- Partnership firms and proprietors: PTEC for the business; PTRC once they pay salaries above the nil slab.
- Professionals (doctors, lawyers, CAs, consultants): PTEC in states that levy it on professions.
- Directors: some states require directors to enrol separately; we check your state's rule.
Being registered is what creates the filing duty. A business with a PTRC that stops paying salaries should still file until the registration is updated or cancelled.
Employers with staff in more than one state
Professional tax follows the place where the employee works, not your head office. A company based in Kolkata with a sales team in Bengaluru and an office in Mumbai deals with three states: West Bengal for Kolkata staff, Karnataka for Bengaluru staff and Maharashtra for Mumbai staff.
Each state needs its own registration where the law requires it, and each has its own slabs and dates. Staff working only in Delhi need no deduction at all. We map every employee to a state at the start, so the payroll deducts the right amount and each return shows only that state's staff.
What happens if you file or pay late?
Late payment and late returns attract interest and penalties under each state's Act. The amounts and rates differ by state and can change, so we quote them for your state when we review your account.
Two practical risks matter more than the rate:
- Deducted but not deposited. Tax deducted from employees' salaries and kept by the employer is treated seriously in every state. Deposit it on time.
- Registration not taken. An employer who deducts tax without a PTRC, or never registers at all, faces arrears for the whole period plus interest and penalty.
If you have old periods pending, bring them up to date in one go. We work out the tax, interest and any penalty, and file the pending returns in order.
Our professional tax return fee
We charge a fixed professional fee. There is no government fee to file a PT return; the tax is paid to the state.
| Item | Amount |
|---|---|
| Professional fee: professional tax return filing (PTRC return or PTEC payment) | ₹999 |
| Government fee | No government fee to file in Maharashtra, Karnataka or West Bengal |
| Professional tax | Paid by you to the state; not a fee |
| Interest or penalty | Only if a return or payment is late; paid to the state |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 21 September 2026.
The fee covers computation, the return or payment on the state portal, and the acknowledgement. For several states, monthly filing through the year or pending past periods, we confirm the scope and total fee in writing before starting.
How we file your PT returns
- Determine. We confirm your state, registrations, filing frequency and due dates.
- Compute. We apply the state's slabs to each employee's salary and work out your own PTEC.
- Review. You see the deduction sheet and approve it before salaries are paid.
- File and pay. We file the return on the state portal and generate the challan for payment.
- Confirm. You receive the acknowledgement and paid challan for your records, and a reminder before the next due date.
Documents we need
- PTRC and PTEC certificates (numbers are enough to start)
- State portal access, shared securely
- Monthly salary register showing gross salary for each employee, and the gender where the state gives women a different slab
- List of offices and branches by state
- Last filed return and challan
- For a new employer: date salaries first crossed the nil slab
Not registered yet?
If you employ staff in a PT state and do not have a PTRC, or your business has no PTEC, register first. Returns follow from the registration date.
We handle registration through professional tax registration. If you also need a shop licence for your premises, see shop and establishment registration. For your other payroll obligations, see labour law compliance.