Guide
Do I Need Professional Tax Registration?
Last reviewed: April 2026 · Sourced from official government portals
First: Does Your State Even Have Professional Tax?
Professional Tax is a state-level tax - the central government does not collect it. About half the states in India levy it; the other half do not. If your business is in Delhi, Uttar Pradesh, Haryana, Rajasthan, Punjab, or Himachal Pradesh, you have zero Professional Tax obligations.
Source: Article 276, Constitution of India. The maximum any state can charge is Rs. 2,500 per year per person.
States Where Professional Tax Applies
Professional Tax by State - Current Rates and Thresholds (2026)
| State | Max Annual PT | Approx. Monthly Income Threshold | Due Date |
|---|---|---|---|
| Maharashtra | Rs. 2,500 | Rs. 7,500/month | Monthly by end of month |
| Karnataka | Rs. 2,496 | Rs. 10,000/month | Monthly by 20th |
| West Bengal | Rs. 2,500 | Rs. 10,000/month | Monthly by 21st |
| Tamil Nadu | Rs. 2,400 | Rs. 3,500/month | Half-yearly |
| Andhra Pradesh | Rs. 2,500 | Rs. 15,001/month | Monthly by 10th |
| Telangana | Rs. 2,500 | Rs. 15,001/month | Monthly by 10th |
| Gujarat | Rs. 2,500 | Rs. 6,000/month | Monthly by 15th |
| Odisha | Rs. 2,500 | Rs. 5,000/month | Quarterly |
| Kerala | Rs. 2,400 | Rs. 12,000/month | Half-yearly (April, October) |
| Madhya Pradesh | Rs. 2,100 | Rs. 6,000/month | Monthly by 10th |
| Assam | Rs. 2,500 | Rs. 10,000/month | Quarterly |
| Jharkhand | Rs. 2,500 | Rs. 5,000/month | Monthly |
| Delhi, UP, Rajasthan, Haryana, Punjab, HP | Not applicable | Not applicable | N/A - no PT in these states |
- •Maharashtra: Up to Rs. 2,500 per year
- •Karnataka: Up to Rs. 2,496 per year
- •West Bengal: Up to Rs. 2,500 per year
- •Tamil Nadu: Up to Rs. 2,400 per year
- •Andhra Pradesh and Telangana: Up to Rs. 2,500 per year
- •Madhya Pradesh: Up to Rs. 2,100 per year
- •Odisha: Up to Rs. 2,500 per year
- •Kerala: Up to Rs. 2,400 per year
- •Gujarat: Up to Rs. 2,500 per year
- •Assam, Meghalaya, Manipur, Tripura, Jharkhand, Sikkim: PT applies with varying slabs
Exact slabs within each state vary by income bracket. Check your state's current PT schedule for the precise amounts.
If You Have Employees: Two Registrations, Not One
In a PT state with salaried staff, you typically need two separate registrations.
- •PTEC (Professional Tax Enrollment Certificate): For you - the business owner, proprietor, partner, or director. You pay PT on yourself.
- •PTRC (Professional Tax Registration Certificate): Authorises you to deduct PT from your employees' salaries and deposit it with the state government. Without this, you are not authorised to make those deductions or remittances.
- •Filing frequency (monthly, quarterly, or annual) and due dates vary by state.
Who Does Not Have To Pay
- •Individuals earning below the state minimum (typically Rs. 7,500 to Rs. 10,000 per month, depending on state)
- •Women earning below Rs. 10,000 per month in Maharashtra
- •Parents or guardians of children with physical or mental disabilities in some states
- •Members of the armed forces
- •Persons above 65 years of age in certain states
- •Everyone in states where PT is not levied (Delhi, UP, Haryana, Rajasthan, Punjab, HP)
What Non-compliance Looks Like
- •Late registration penalty: Typically Rs. 5 per day in most states
- •Interest on late payment: 1.25% per month in Maharashtra; similar in other states
- •Penalty for not deducting or remitting: Up to 10% of unpaid amount plus arrears
- •Assessment and prosecution by the state PT authority
The Short Answer Based On Your Situation
- •In a PT state + have salaried employees = Get both PTRC and PTEC
- •In a PT state + self-employed or proprietor = Get PTEC only
- •In Delhi, UP, Haryana, Rajasthan, Punjab, or HP = Not applicable
- •Operating in multiple states = Register separately in each PT state where you have employees or a business presence
Frequently Asked Questions
How we reviewed this page
The penalty amounts, deadlines, and regulatory requirements on this page are sourced directly from official government portals. We do not use secondary sources. When regulations change, we update the page.
Sources will be added soon.
Book this service on Ollvy
Payroll Management
Want to do it yourself?