WHAT IS PROFESSIONAL TAX?

Professional Tax is a direct tax levied on professions and trades in India. It is a state-level tax. State Governments and Local Authorities are empowered to collect professional taxes on professions, trades, callings and employment. The professional tax is a source of revenue for the State Government.

WHAT IS PROFESSIONAL TAX?

In following states PT is applicable –

WHAT ARE TYPES OF PT IN MAHARASHTRA?

a) Profession Tax Enrollment Certificate (PTEC) :

Any person engaged in Profession, Trade and falling under one or the other classes mentioned in the second column of Schedule I shall obtained PTEC

b) Profession Tax Registration Certificate (PTRC) :

Every employer who has employed an employee whose salary is above the prescribed limit for deducting Profession Tax shall obtain PTRC.

WHAT IS THE DIFFERENCE BETWEEN PTEC AND PTRC?

  • PTEC –

PTEC stands for Professional Tax Enrollment Certificate.

PTEC has to be paid by business entities (like Private Ltd, Public Ltd, OPC, etc), and also by owner or professional (sole proprietor, partner, director, etc).

  • PTRC–

PTRC is Professional Tax Registration Certificate.

PTRC has to be collected by the employer (government or non-government) after deducting professional tax from the employee’s salary or wages and deposit the same to the respective state government.

WHO IS REQUIRED TO REGISTER FOR PTRC ?

Every employer in Maharashtra is required to deduct taxes from salary when paid to one or more employees when payment made exceeds Rs 5000 and deposit with state government. That entity is required to obtain registration certificate.

WHO IS REQUIRED TO TAKE REGISTRATION UNDER PTEC?

The person who starts business or practice is required to take registration under PTEC.

WHEN ENROLLMENT CERTIFICATE IS REQUIRED TO BE OBTAINED?

When person is employed in profession by two or more employers and is getting salary/wages exceeding Rs. 5000 but employer is not deducting professional tax then the individual needs to get enrolment certificate from authority.

WHEN TO APPLY FOR REGISTRATION?

Employer shall take Registration within 30 days of becoming liable to pay professional tax.

WHO ARE EXEMPTED FROM OBTAINING REGISTRATION?

  • Senior Citizens who have completed age of 65 years.
  • Parents of a mentally challenged child.
  • Persons or parents of children suffering from physical disability.
  • Physically handicapped persons with 40 % or more disability and
  • Badli workers in the textile industry.

WHAT ARE THE PT SLAB RATES IN MAHARASHTRA?

For Financial Year 2018-19

MONTHLY SALARY PROFESSIONAL TAX TO BE LEVIED (PER MONTH)
UPTO Rs. 7500 Nil
Rs. 7501- Rs.10000 Rs.175
Above Rs. 10,000

(Women who earn salary up to Rs. 10,000 per month are exempted from paying professional tax.)

 For all months other than February- 200

For month of February- 300

WHAT DETAILS YOU ARE REQUIRED TO PROVIDE?

The following documents shall be submitted along with application form-

  • Certificate of Incorporation.
  • MOA,AOA of Company /LLP Agreement.
  • PAN card of Company/LLP which is attested by director of the company.
  • Address proof of business along with a NOC from the owner of the premises
  • Bank account details of the company . (bank statement or cancelled cheque)
  • Passport size photographs, address and identity proof from all the directors/partners.
  • Contact details (Email Id and Mobile Number)
  • PF Number

WHAT SERVICE WILL YOU GET FROM US?

  • Preparation of application
  • Submission of application
  • Registration Certificate

WHAT ARE THE PENAL PROVISIONS IF PERSON FAILS TO TAKE REGISTRATION UNDER PTRC?

An employer will be charged a penalty of Rs. 5 per day for each day of not obtaining professional tax registration.

FAQ’s

CAN DEDUCTION BE CLAIMED??

A deduction from salary can be claimed by the taxpayer on account of professional tax paid. The deduction for professional tax will be allowed in the year in which the tax is actually paid by the employee.