Overall Working Process for Profession Tax Compliance

Profession Tax is governed by the Trades, Callings and Employments Act, 1975. Person doing business in Maharashtra like Professionals, Traders etc. is liable to obtain registration certificate and do compliance of profession tax. Simply saying Profession Tax is a state-level tax that applies to salaried employees and professionals, including lawyers, Consultants and doctors.

Company need to apply for Professional tax registration certificate (PTRC) who is in the role of employer whereas Professional tax Enrollment certificate(PTEC) is to obtained by the company for its own existence and engaging in profession (and of-course business too) within the state of Maharashtra.

Total yearly Rs. 2500 required to be paid like Rs. 200 per Month and Rs. 300 in Month of February (Rs. 200 * 11 + 300 = 2500 ) for late payment of Taxes interest in applicable. Our dedicated professional team helps you in taking registration and maintaining tax compliances with timely reminder and follow-ups.

Our services include following:

  • Profession Tax Applicability & Tax Payment working Monthly / Quarterly Calculation
  • Profession Tax Advisory
  • Profession Tax Assessment and Hearing
  • Profession Tax Return filling
  • Representation Services


Return Filing

Persons holding Professional Act Registration is required to file monthly / Annual Returns on basis of tax payable criteria (into Maharashtra State).

No Renewal of Registration

Professional Tax is issued for the life time purpose hence there is no requirement of renewal of same as like in case of Shop Act etc.

Professional Tax on Income Tax Calculation

Professional Tax paid under (Professional Tax) within the meaning of article 276(2) of the Constitution of India, shall also be allowed as a deduction in computing the income under the head “Salaries”.

Simple Compliance

Compliance under Professional tax such as timely tax payment and filing of return is simple which can be maintained easily.

Frequently Asked Questions (FAQs)

What is Professional Tax?

Professional Tax is a State Tax and is levied by states on employments, businesses, trades, professions etc.

Who are required to obtain Certificate of Registration (RC)?

Where a salary/wages payable is exceeding the applicable limit of Rs. 7,500 (Male) & Rs. 10,000 (Female) then employer is liable to make payment of professional tax (Maharashtra State).

What is upper limit of payment of Profession Tax?

The maximum limit of profession tax per person is Rs. 2,500.

What is the rate of Professional Tax?

Professional Tax rates for employees differ from state to state. The rates depends upon the salary earned by the employee.