Profession tax is a type of indirect tax in India. In exercise of the powers conferred to the State Governments, Professional Tax is levied by different states using varied rates and methods of collection.

Profession tax is levied on all persons in the State earning income in any manner. Hence all income whether salary, business or professional, is under the tax net. The requirement for registration, mode of collection of tax and filing of returns differs for each type of assessee.

Professional Tax Enrolment Certificate (PTEC)

Every person (or company) conducting any business or profession within a particular state is required to enrol himself with that state for payment of Profession tax and this type of registration is called as Professional Tax Enrolment Certificate (PTEC). Hence this covers all proprietors carrying on own business as also Private companies and Professionals like lawyers, doctors, Chartered Accountants, etc.

Professional Tax Registration Certificate (PTRC).

In case of salaried persons, it is the duty of the employer to deduct the prescribed amount of tax each month from employee's salary and remit the same to the State government. Every employer, employing even a single person, whose salary is above the prescribed minimum slab, is required to enrol for this type of registration known as Professional Tax Registration Certificate (PTRC).

PTEC system requires only payment of tax and no separate filing of returns. But assesses liable for PTRC need to comply with payment of tax and filing of periodic returns as well. Different states have own set of rules regarding levy and collection of Tax and compliance requirements. The following are the compliance rules for Professional Tax in Maharashtra.

PTEC Due Date for FY 2017-18 and 2018-19

Sr. No. Class of enrolled person Due Date
1 Person who stands enrolled before the commencement of a year or is enrolled on or before 31st May of a year 30th June of that year
2 Person who is enrolled after the 31st May of a year Within 1 month of the date of enrolment

PTRC Due Date for FY 2017-18 and 2018-19

Sr. No. Tax Liability during previous year Periodicity Due Date for Payment of Tax and Filing of Return
1 Tax Liability is less than Rs. 50,000 Yearly 31st March of the Financial Year to which the return relates
2 Tax Liability is equal to or more than Rs. 50,000 Monthly The last date of the month to which the return relates

PTEC Rate in Maharashtra

Sr. No. Type of Assessee Annual PTEC Liability
1 Individuals undertaking any proprietorship business of any nature within Maharashtra Rs. 2,500
2 Companies undertaking any business of any nature within Maharashtra (having registered office/ factory/ branch office, etc.) Rs. 2,500
3 Individuals undertaking specified Profession as
A. Legal Practitioners including Solicitor and Notaries
B. Medical Practitioner including Medical Consultants and Dentists
C. Technical and Professional Consultants, including Architects, Engineers, R.C.C. Consultants, Tax Consultants, Chartered Accountants, Actuaries, and Management Consultants
D. Chief Agents, Principal Agents, Insurance Agents and Surveyors and Loss Assessors registered or licensed under the Insurance Act 1938, I. T.I. Agents under U.T.I. Scheme, N.S.S. Agents under Postal Scheme
E. Commission Agents, Dalals, and Brokers (other than estate brokers covered by any other entry elsewhere in this Schedule)
F. All types of Contractors (other than building contractors covered by any other entry elsewhere in this Schedule); and
G. Diamond dressers and diamond polishers, having not less than one year's standing in the profession.
Rs. 2,500

For detailed descriptions and Rate schedules visit here

PTRC Rate in Maharashtra

Sr. No. Type of Assessee PTRC Liability
1 Salary and Wage earners
Such persons whose monthly salaries or wages
a) Do not exceed Rs. 7,500;
i. In case of male employee, is from Rs. 7,501 to Rs. 10,000;
ii. In case of female employee, does not exceed Rs. 10,000
c) Exceeds Rs. 10,000
Rs. 175 per month NIL
Rs. 2,500 per annum to be paid in the following manner
(a) Rs. 200 per month except for the month of February
(b) Rs. Three hundred for the month of February

For other assesses, detailed descriptions and Rate schedules etc visit here

Exemptions in Professional Tax

Exemptions have been provided to certain categories of persons from Profession tax law in Maharashtra as below

  • The person who have completed the age of 65 years
  • The Badli workers in the Textile Industry
  • Any person suffering from a permanent physical disability (including blindness) which has the effect of reducing considerably such individual's capacity for normal work or engaging in a gainful employment or occupations
  • Parents or Guardian of any person who is suffering from mental retardation specified in the rules made in this behalf, which is certified by a psychiatrist working in a Government Hospital
  • Parents or Guardians of a child suffering from a physical disability as specified above

Professional tax is a small but significant compliance requirement for all businesses in India. V. Purohit & Associates can help set-up and manage the end-to-end Professional Tax compliance mandates for any business, across any location in India. Our indirect tax experts stay abreast with the latest developments and notifications, so that you experience peace of mind.

Talk to us

Visit here for our Taxation and Compliance services for the human resources team or contact us to know more about indirect taxes and to discuss your Professional Tax outsourcing requirements in India.

We are a new-age financial accounting company, that upholds age-old values and principles of Chartered Accountancy. We offer a fairly-differentiated set of services, tailored to specific business goals and challenges.