Professional Tax Registration – A Complete Guide
Professional Tax is a state-level direct tax levied on individuals earning income through profession, employment, trade, or business, governed by respective State Legislations and deductible under Section 16(iii) of the Income Tax Act, 1961.
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What is Professional Tax?
Professional Tax applies to salaried employees, self-employed professionals (doctors, lawyers, consultants), business entities, and freelancers. Each State sets its own thresholds and rates under its Professional Tax Act.
Types of Professional Tax Certificates
1. Professional Tax Enrolment Certificate (PTEC) – for individuals/entities to pay their own tax. 2. Professional Tax Registration Certificate (PTRC) – for employers to deduct and pay tax on behalf of employees.
Objective of Professional Tax
To generate state revenue for socio-economic development, infrastructure and welfare programs, and local municipal activities.
Benefits of Online Registration
• Ensures legal compliance and avoids penalties • Enables systematic tax deduction and reporting • Supports government welfare schemes • Enhances business credibility • Simplifies audit and inspection processes
1. Documents Required for Registration
• Certificate of Incorporation, PAN, MOA, AOA
• Address & ID proofs of partners/directors
• Passport-size photos
• Rent agreement or office NOC
• Bank statement and cancelled cheque
• Salary & attendance register
• Shop & Establishment Certificate
• Financial statements and board resolution
Step 1: Determine Applicability
Check eligibility on your State’s commercial tax portal based on entity type and income.
Step 2: Submit Application
Apply online through the State’s Professional Tax portal by filling the prescribed form.
Step 3: Upload Documents
Attach all required documents digitally as per the checklist.
Step 4: Verification
State tax officials scrutinize the application and supporting documents.
Step 5: Issuance of Certificate
Upon approval, the Enrolment or Registration Certificate is issued online.
Step 6: Periodic Return Filing
File returns and pay tax at intervals prescribed by your State (monthly/quarterly/annual).
Professional Tax Rates in Select States
Monthly slabs and rates vary by State. Always verify latest rates with your State Commercial Tax Department.
| Manufacturer (Production Capacity) | License Fees/year (INR) |
|---|---|
| Gujarat – Up to ₹12,000 / ₹12,001+ | Nil / ₹200 |
| Andhra Pradesh – Up to ₹15,000 / ₹20,001+ | Nil / ₹150–₹200 |
| Bihar – Up to ₹3L / ₹10L+ | Nil / ₹1,000–₹2,500 |
| Karnataka – Up to ₹15,000+ | Nil / ₹200 |
| Maharashtra – Up to ₹10,000 / ₹10,001+ | Nil / ₹175–₹300 |
| Madhya Pradesh – Up to ₹4L / Above | Nil / ₹125–₹212 |
| Mizoram – Up to ₹12,000 / Above | Nil / ₹35–₹208 |
| Odisha – Up to ₹3L / Above | Nil / Variable |
Timeline to Obtain Professional Tax Registration
Registration and certificate issuance typically take 1–2 weeks, subject to portal processing times and document accuracy.
Application Submission
1–3 days
Fill and submit the online form with documents.
Verification
3–7 days
State tax authority reviews and verifies.
Certificate Issuance
1–2 days
Digital certificate generated upon approval.
Why Choose Do Startup?
Expert guidance on State-specific professional tax laws.
Complete documentation preparation and filing support.
Real-time application tracking and updates.
End-to-end compliance management to avoid penalties.
Dedicated customer support throughout the process.