Professional Tax Registration

Professional Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors.

Professional tax is a tax that is imposed by the State government on all salaried individuals. Professional tax is applicable to all working professionals like chartered accountants, lawyers, and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as Professional tax is Rs.2,500 per annum.


Professional Tax Applicability

Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same


Professional Tax Variation With Each State

Professional tax payment will always have distinct rates that keep varying from state to state. The state governments which are levying state tax are West Bengal, Maharashtra, Karnataka, Kerala, Assam, Madhya Pradesh, Orissa, Tripura, Meghalaya, and Gujarat.


Professional Tax For Self-Employed

Any professional who gets a regular income on a monthly basis will have to pay the professional tax. By the term professional, we imply people working in specialized fields like accountancy, media, medicine, information technology, media, etc.

Professionals offering freelance services also need to pay professional tax using a special type of form. They can fill the form and get a registration number first. Then, using that number, they can pay their taxes in the corresponding banks.

In certain states in India, specifically , Maharashtra Profession Tax Act amended from 1.4.2018, Now a Limited Liability Partnership and each partner of LLP shall be liable to pay PT of Rs. 2,500/- per annum.


Exemption From Professional Tax Payment
  • Parents of children with a permanent disability or mental disability.
  • Members of the armed forces, including members of auxiliary forces or reservists, serving in the state.
  • Individuals, over 65 years of age.
  • An individual who is physically challenged (also visually challenged).
  • Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
  • Parents or guardians of individuals who are mentally challenged
  • Badli workers in the textile industry.

  • Benefit for Professional Tax Registration
  • It Is A Judicial Requirements
  • To Avoid Paying Penalties
  • Easy To Comply
  • Deductions
  • The State Government Tax

  • Documents required for Professional Tax Registration
  • Certificate of Incorporation, including MOA & AOA / LLP Agreement.
  • PAN card of Company/LLP which is attested by the company director
  • Place of business proof along with a NOC from the owner of the premises
  • Bank account of the company including bank statement and cancelled cheque.
  • Passport size photographs, address and identity proof from all the directors
  • Board resolution or in other words, the statement of consent by the partners.
  • Shop and establishment certificate
  • Salary register and attendance register