Professional Tax Registration: Complete Online Process

Professional Tax Registration: Complete Online Process

The Professional Tax (PT) is a tax imposed by state governments on individuals earning income through employment, profession, or trade in India. The law applies to salaried employees, freelancers, lawyers, doctors, chartered accountants, and business owners. Taxes are deducted from employees' salaries by their employers and deposited with state governments.

As Professional Tax is governed by state laws, its rate and applicability vary from state to state. State welfare programs and infrastructure development are funded by the tax collected.

Understand Professional Tax Registration

Professional tax is a small tax levied by the state government on every person who earns by employment, trade or profession. This tax applied to all salaried employees whether they are freelancers, business owners or self-employed professionals. Mainly, Professional tax deducted from the salaries of the employees and deposited with the respective state government.

However, Professional tax registration is an essential requirement for professionals or the businesses operating in the state that impose this tax. This tax is governed by the state laws and every professional and employer must comply with the registration, payment and filing requirements.

Type of Professional Tax Registration

There are two types of Professional tax registration which is given below:

1. PTRC:

PTRC (Professional Tax Registration Certificate) required for the employers who have many salaried employees. It must ensure by the company that they deduct Professional tax from the employees’ salaries and deposit it with the State government. It helps to prevent hefty penalties and ensure compliance with the state tax. The Employer should also file return periodically according to regulation of the state government.

2. PTEC:

PTEC (Professional Tax Employment Certificate) required for the self-employed person like - professionals, freelancers or business owners. Every employed person must register and pay professional tax to the state government directly and avoid legal fines and issues.

Exemption of Professional Tax Registration

There are certain people and businesses who are exempted from the professional tax. The Exemption may vary state-by-state but here are some common exemptions mentioned below:

• 1. Senior Citizen - Individual with above 65 years age, no need to pay professional tax.
• 2 Physically/Mentally Disabled Children Parents - Any parents or guardian who has responsibility to take care of the child who is physically disabled (at least 40%) or mentally challenged child, exempted from the Professional tax.
• 3. Army Force Member - Any person serving India or working in the Army no need to comply with the professional tax compliances.
• 4. Specific Professions - there are many specific professions where the individual or business do not require any registration or compliances with the professional tax. It mainly depends on the state regulations.
• 5. Agricultural Workers - If any Individual working in agriculture or engages in farming activities, exempted to pay professional tax.

Note- Every Employer and professionals must go with the state-specific regulations to confirm exemptions criteria.

Documents Required for Professional Tax Registration

The documents for Professional tax registration may vary according to the registration types. Checkout the list here as per the registration type -

1. PTRC - For Employer:

2. PTEC - For Self-Employed:

Process of Professional Tax Registration Online

1. Step 1: Go to the official website of the particular state for professional tax registration in which you want to apply. Because each state has their own state portal for PT registration application.
2. Step 2: Once visiting on the official portal, sign up using business or individual credentials. Select the option for which you want to apply for such as PTRC or PTEC.
3. Step 3: Fill out the appropriate documents required during the registration process such as business type, number of employees and others if you are filing an application for PTRC same as PTEC but you don’t need to add the number of employees there because it is for self-employed persons.
4. Step 4: Once you are done with the documents upload, you need to pay come fees or nominal registration fees. It depends on the state-by-state.
5. Step 5: After the application submission, the authority will verify the documents uploaded by the applicants and if it has no discrepancies, the certificate is issued, allowing business to comply with the tax payments.

List of States with Professional Tax Registration Applicability

Check out the complete states list with professional tax registration applicability here!

There are certain states such as Delhi, Uttar Pradesh, Rajasthan, Goa and Punjab who do not impose professional tax.

Professional Tax Rates in Various States of India

Professional Tax rates vary upon the states. Here is the complete list of tax rate according to the state -

Certificate and Compliance for Professional Tax Registration

After successful PT registration, the business will get PTRC (Professional Tax Registration Certificate) for employer deductions and PTEC (Professional Tax Enrollment Certificate) for self-employed professionals. Once this certification, employers or self-employed must comply with certain compliances such as -

Professional Tax Payment Due Dates

Depending upon state’s regulations professional tax is paid on monthly, quarterly or annual basis. Check the common deadlines here -

Why Choose RegisterAdda?

Choosing RegisterAdda for professional tax registration assures professional guidance through the complex process, compliance with state-specific regulations, and efficient management of documentation. Our keen support aids to minimize errors and hefty fines, allowing you to focus on your core business with confidence.

Frequently Asked Questions