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Professional Tax Registration

Article 276 of the Constitution of India:

Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments.

What is Professional Tax:

Profession tax is a tax leviable on Professions, Trades, Callings and Employments. The GST Department is the nodal agency which collects the Profession Tax dues from business entities in the State. Every professional, trader, calling and employment except Agriculturalist, Persons engaged in performing religious duties, Skilled persons that is to say Gold Smith, Black Smith, Pot Maker, Basket Maker, Washerman, Barber, Cobbler, Tailors, Carpenters, Masons, Plumbers, Book Binder, Toddy Tappers and Electricians, Physically Handicapped persons with 40% or more disability of any kind adn Dry Cleaners has to apply for registration under Professional Tax Act.

Different states have different rates and methods of collection. In India, profession tax is imposed every month. However, not all states impose this tax. The states which impose professional tax are Andhra Prdesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madya Pradesh, Maharastra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Pandicherry, Punjab, Sikkim, Tamil Nadu, Telangana, Tripura, West Bengal. It is a direct tax levied by respective sate government. Both employee and employer have to pay this tax. This tax is deducted while paying salaries to the employees, where as for business entities, it has to be paid on yearly basis (ie. on or before 30th June).

Profession tax is levied and collected by the GST Department of State Governments, in some states by particular Municipal Corporations and majority of the Indian states are collecting this tax. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deducted by the employer from their employee every month and remitted to state exchequer and in some states sent to the Municipal Corporation. It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

Who has to register under Professional Tax:

An employer ie. corporates, partnership firms, sole proprietorship etc., also being a person carrying on trade/profession is required to register under Professional Tax. Each sate has it's own professional tax law.

An employer (corporates, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to the monetary threshold if any provided by respective State’s legislation.

Who has to pay Professional Tax:

For employees, an employer is the responsible to deduct and pay professional tax to the State Government subject to monetary threshold if any provided by respective State’s legislation. Additionally, employer (corporates, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to monetary threshold if any provided by respective State’s legislation. In such case, employer needs to register and obtain both professional tax registration certificate to be able to pay professional tax on his trade/profession and professional tax enrolment certificate to be able to deduct the tax from his employees and pay.

Professional Tax Rates in India:

Each state has diferrent tax rates. Below are the tax rates for each sate in India.

Professional Tax rates in Andhra Pradesh & Telangana:

Monthly Salary Professional Tax Amount
Up to Rs.15000 Nil
Rs.15001 to Rs.20000 Rs.150 per month
Rs.20000 above Rs.200 per month

Professional Tax rates in Assam:

Monthly Salary Professional Tax Amount
Up to Rs.10000 Nil
Rs.10001 to Rs.15000 Rs.150 per month
Rs.15001 to Rs.25000 Rs.180 per month
Rs.25000 above Rs.208 per month

Professional Tax rates in Bihar:

Monthly Salary Professional Tax Amount
Up to Rs.25000 Nil
Rs.25001 to Rs.41666 Rs.83 per month
Rs.41667 to Rs.83333 Rs.166.67 per month
Rs.83333 above Rs.208.33 per month

Professional Tax rates in Delhi:

Nil

Professional Tax rates in Goa:

Monthly Salary Professional Tax Amount
Up to Rs.15000 Nil
Rs.15001 to Rs.25000 Rs.150 per month
Rs.25000 above Rs.200 per month

Professional Tax rates in Gujarat:

Monthly Salary Professional Tax Amount
Less than Rs.6000 Nil
Rs.6000 to Rs.8999 Rs.80 per month
Rs.9000 to Rs.11999 Rs.150 per month
Rs.12000 and above Rs.200 per month

Professional Tax rates in Jharkhand:

Monthly Salary Professional Tax Amount
Up to Rs.25000 Nil
Rs.25000 to Rs.41666 Rs.100 per month
Rs.41667 to Rs.66666 Rs.150 per month
Rs.66666 to Rs.83333 Rs.175 per month
Rs.83333 above Rs.208 per month

Professional Tax rates in Karnataka:

Monthly Salary Professional Tax Amount
Up to Rs.15000 Nil
Rs.15000 above Rs.200 per month

Professional Tax rates in Kerala:

Monthly Salary Professional Tax Amount
Up to Rs.11999 Nil
Rs.12000 to Rs.17999 Rs.120 per half year
Rs.18000 to Rs.29999 Rs.180 per half year
Rs.30000 to Rs.44999 Rs.300 per half year
Rs.45000 to Rs.59999 Rs.450 per half year
Rs.60000 to Rs.74999 Rs.600 per half year
Rs.75000 to Rs.99999 Rs.750 per half year
Rs.100000 to Rs.124999 Rs.1000 per half year
Rs.125000 and above Rs.1250 per half year

Professional Tax rates in Madhya Pradesh:

Monthly Salary Professional Tax Amount
Less than Rs.18750 Nil
Rs.18750 to Rs.25000 Rs.125 per month
Rs.25000 to Rs.33333 Rs.167 per month
Rs.33333 and above Rs.212 per month

Professional Tax rates in Maharashtra:

Monthly Salary Professional Tax Amount
Less than Rs.7500 Nil
Rs.7501 to Rs.10000 Rs.175 per month
Rs.10000 above Rs.300 for Feb month and rest is Rs.200
Woman salary upto Rs.10000 Nil

Professional Tax rates in Manipur:

Monthly Salary Professional Tax Amount
Upto Rs.4250 Nil
Rs.4251 to Rs.6250 Rs.100 per month
Rs.6251 to Rs.8333 Rs.167 per month
Rs.8334 to Rs.10416 Rs.200 per month
Rs.10417 & above Rs.212 per month

Professional Tax rates in Meghalaya:

Monthly Salary Professional Tax Amount
Upto Rs.4166 Nil
Rs.4167 to Rs.6250 Rs.16.50
Rs.6251 to Rs.8333 Rs.25 per month
Rs.8334 to Rs.12500 Rs.41.50 per month
Rs.12501 to Rs.16666 Rs.62.50 per month
Rs.16667 to Rs.20833 Rs.83.33 per month
Rs.20834 to Rs.25000 Rs.104.16 per month
Rs.25001 to Rs.29166 Rs.125 per month
Rs.29167 to Rs.33333 Rs.150 per month
Rs.33334 to Rs.37500 Rs.175 per month
Rs.37501 to Rs.41666 Rs.200 per month
Rs.41667 above Rs.208 per month

Professional Tax rates in Odisha:

Monthly Salary Professional Tax Amount
Up to Rs.13304 Nil
Rs.13305 to Rs.25000 Rs.125 per month
Rs.25000 above Rs.300 for Feb month and for rest Rs.200

Professional Tax rates in Punjab:

Monthly Salary Professional Tax Amount
Yearly salary income is more than Rs.2,50,000 Rs.200 per month
Yearly business income is more than Rs.2,50,000 Rs.200 per month

Professional Tax rates in Puducherry:

Monthly Salary Professional Tax Amount
Half yearly salary up to Rs.99999 Nil
Half yearly salary from Rs.100000 to Rs.200000 Rs.250 per half year
Half yearly salary from Rs.200001 to Rs.300000 Rs.500 per half year
Half yearly salary from Rs.300001 to Rs.400000 Rs.750 per half year
Half yearly salary from Rs.400001 to Rs.500000 Rs.1000 per half year
Half yearly salary from Rs.500000 above Rs.1250 per half year

Professional Tax rates in Sikkim:

Monthly Salary Professional Tax Amount
Up to Rs.20000 Nil
Rs.20001 to Rs.30000 Rs.125 per month
Rs.30001 to Rs.40000 Rs.150 per month
Rs.40000 above Rs.200 per month

Professional Tax rates in Tamil Nadu:

Monthly Salary Professional Tax Amount
Up to Rs.21000 Nil
Rs.21001 to Rs.30000 Rs.135 per half year
Rs.30001 to Rs.45000 Rs.315 per half year
Rs.45001 to Rs.60000 Rs.690 per half year
Rs.60001 to Rs.75000 Rs.1025 per half year
Rs.75000 above Rs.1250 per half year

Professional Tax rates in Tripura:

Monthly Salary Professional Tax Amount
Up to Rs.7500 Nil
Rs.7500 to Rs.15000 Rs.150 per month
Rs.15000 above Rs.208 per month

Professional Tax rates in West Bengal:

Monthly Salary Professional Tax Amount
Up to Rs.10000 Nil
Rs.10001 to Rs.15000 Rs.110 per month
Rs.15001 to Rs.25000 Rs.130 per month
Rs.25001 to Rs.40000 Rs.150 per month
Rs.40000 above Rs.200 per month

How to Register under Professional Tax Act

An employer ie. corporates, partnership firms, sole proprietorship etc., also being a person carrying on trade/profession is required to register under Professional Tax. Each sate has it's own professional tax law. You can find below the Documents required and Step by Step Registration Process.


Documents Required

  • A

    For Proprietorship Business

    1. Proprietor PAN, Aadhaar Card or Voter ID or Passport or Driver's License
    2. Latest passport size photograph
    3. Office Name Board both in English and Regional Language
    4. List of Employees and their designations if any
    5. Proprietor Mobile Number
    6. Proprietor Email id
    7. Registered Office Address Proof: Latest Power Bill
    8. No-objection letter cum Affidavit from the Landlord if it is owned.
    9. Rental Agreement from the landlord if the premises are rented.
  • B

    For Other Businesses

    1. Directors or Partners PAN, Aadhaar Card or Voter ID or Passport or Driver's License
    2. Directors or Partners latest passport size photographs
    3. Office Name Board both in English and Regional Language
    4. List of Employees and their designations if any
    5. Directors/Partners Mobile Number
    6. Directors/Partners Email id
    7. Partnership Deed in case of Firm
    8. Certificate of Registration of Business
    9. Partnership Deed or MOA, AOA or LLP Agreement
    10. firm/LLP/Company PAN
    11. Board Resolution
    12. Registered Office Address Proof: Latest Power Bill
    13. No-objection letter cum Affidavit from the Landlord if it is owned.
    14. Rental Agreement from the landlord if the premises are rented.

3 Step Registration Process:

  • 1

    Preparation of Documents

    Through CompaniesHouse - One Hour Job

    We will prepare all the documents in order for online uploading with the Professional Tax department web portal.

  • 2

    Online Submission

    Through Online Portal - One Hour Job

    We will upload the documents with the Professional Tax web portal online and pay the requisite fee. We will approach the Inspector concerned and get the application approved.

  • 3

    Certificate of Registration

    Through Online - Under 3 days

    After scrutiny, the Officer will approve the form and issues you the Certificate of Registration Online through their web portal.


Let's Clear Your Doubts


What is professional tax?

Professional tax means a tax leviable under on Professions, Trades, Callings and Employments. The GST Department is the nodal agency which collects the Profession Tax dues from professionals in the State.

What are the types of Professional tax?

Professional tax is basically two types 1. Enrollment (Form V Payments) Monthly deduction from salaries 2. Registration:-Profession, trade, calling payable based on the annual turnovers of the registered dealers.

How to obtain registration?

An individual or business entity can obtain the professional tax registration by filing an application in Form I of tax on Professions, Trades, Callings and Employments by furnishing the following details a) Address proof b) Bank account with Branch name c) business registration certificate d) mail ID e) GST Number etc.,.

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Do we need to renew the Professional Tax Certificate?

Not required.

For establishment, we have to pay tax on yearly basis and for employees it is to be paid on monthly.

Who has to pay professional tax?

Both employer and employee have to pay this tax. Different state has different slab rates.

In howmany days a professional tax registration can be done?

3-4 business days.

What is the government fee for Professional Tax Registration?

Different state has different slabs. For example: Telangana government imposes Rs. 2500/- for company, Rs. 2500/- for each director and for employees whose gross salary is from Rs. 15,001 to 20,000, the professional tax is Rs. 150/- and for employees whose gross salary is above Rs. 20,000, the professional tax is Rs. 200/-.

Register your business under Professional Tax with us for less! Start here & Save! Contact Now!

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