Professional Tax Registration & Payment

Definition

Professional tax is a state-imposed tax on professions, trades, callings and employment. Levied in 16 states/UTs — including Maharashtra, Karnataka, Tamil Nadu, Telangana, West Bengal, Gujarat, Madhya Pradesh, Kerala, Andhra Pradesh, Assam, Bihar, Odisha, Sikkim, Tripura, Nagaland, Puducherry.

• SourceState Profession Tax Acts (Maharashtra 1975; Karnataka 1976; Tamil Nadu Municipal Act etc.); Constitutional ceiling Rs 2,500 per person per year (Art 276) — Sec 4 (registration)mahagst.gov.in

What it means in practice

Professional Tax Registration & Payment is administered by State Commercial Tax / Revenue Department. The obligation is grounded in State Profession Tax Acts (Maharashtra 1975; Karnataka 1976; Tamil Nadu Municipal Act etc.); Constitutional ceiling Rs 2,500 per person per year (Art 276) (Sec 4 (registration)).

Two registrations: PTRC (Professional Tax Registration Certificate — employer) and PTEC (Enrolment Certificate — self). Slab rates vary by state.

• SourceState Profession Tax Acts (Maharashtra 1975; Karnataka 1976; Tamil Nadu Municipal Act etc.); Constitutional ceiling Rs 2,500 per person per year (Art 276) — Sec 4 (registration)mahagst.gov.in

Triggers (applicability predicates)

These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.

• state IN ['Maharashtra','Karnataka','Tamil Nadu','Telangana','West Bengal','Gujarat','Madhya Pradesh','Kerala','Andhra Pradesh','Assam','Bihar','Odisha','Sikkim','Tripura','Nagaland','Puducherry']

Deadlines and penalty

Cadence: annual

Penalty for default: Late registration: penalty Rs 5/day (Maharashtra) or 10% of tax (Karnataka). Non-payment attracts interest at notified rates.

Citations

• SourceState Profession Tax Acts (Maharashtra 1975; Karnataka 1976; Tamil Nadu Municipal Act etc.); Constitutional ceiling Rs 2,500 per person per year (Art 276) — Sec 4 (registration)mahagst.gov.in