Professional Tax
Professional Tax (PT) is a small state-level tax on salaries and professions, capped at ₹2,500 a year. If your state levies it, employers must register, deduct it from salaries and file returns. We register you and keep the compliance running.
Key benefits
- Employer (EC) and employee (RC) registrations handled
- Avoid state penalties for non-deduction and late filing
- Periodic PT returns filed on time
- PT paid is itself deductible from taxable income
Documents required
- PAN of the business and proprietor/directors
- Address and business proof
- Employee salary details
- Bank details and cancelled cheque
How it works
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1
Applicability check
PT applies only in certain states (e.g. Karnataka, Maharashtra, West Bengal, Tamil Nadu, Telangana, Gujarat, MP and others).
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2
Registration
Enrolment (EC) and Registration (RC) certificates obtained from the state.
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3
Deduction setup
The correct state slab is applied to each employee’s salary.
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4
Returns
Periodic PT returns filed and challans deposited.
Frequently asked questions
Does every state levy professional tax?
No — several states and UTs (e.g. Delhi, Haryana, UP) do not levy PT. It is mandatory only where the state imposes it.
How much is it?
It is capped at ₹2,500 per person per year, on a slab based on monthly salary. The exact slab varies by state.
Who deducts it?
The employer deducts it from salaries and deposits it; self-employed professionals pay it directly.