Professional Tax is a state-level tax levied on professions, trades, callings, and employment. It is applicable to both salaried individuals and business owners (like doctors, lawyers, CAs, and merchants). If you are an employer with one or more employees, or if you are a professional practicing independently, you are likely required to register and pay this tax to the state government.

These are the two types of registrations required under Professional Tax:

• PTEC (Professional Tax Enrollment Certificate): This is for the business entity itself or the individual professional (the employer/owner). You pay this once a year.

• PTRC (Professional Tax Registration Certificate): This is for the employer to deduct tax from the employees’ salaries and remit it to the government. You file this monthly or quarterly. AccountSewa helps you determine if you need one or both of these certificates.

No, Professional Tax is not applicable in all states. States like Maharashtra, Karnataka, Gujarat, West Bengal, and Tamil Nadu have strict PT regulations, while others like Delhi or Haryana do not currently levy this tax. We can help you check the specific requirements based on where your office or shop is located.

To get your PT registration, you generally need:

• PAN Card of the business and the directors/partners/proprietor.

• Aadhaar Card of the authorized person.

• Proof of Business Address (such as a rent agreement or utility bill).

• Employee Details (number of employees and their salary brackets).

• Bank Account Details (cancelled cheque).

Non-compliance can lead to heavy penalties, including a monthly fine for late filing and interest on the unpaid tax amount. In some states, the penalty for not registering despite being eligible can be a fixed heavy amount. AccountSewa ensures you are registered on time and that your monthly deductions and annual payments are handled accurately to avoid these costs.