Professional tax in Maharashtra is a tax levied by the Maharashtra State Government on income earned through employment, profession, trade, or business. Under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, this tax is governed by the Maha GST Portal. Regulations for imposing, collecting, and administering professional taxes are outlined in this law. Salaried employees, individuals who are self-employed, and business owners are all subject to the tax. In this article, we will get a complete understanding of the Professional tax in Maharashtra including its applicability, types, documents, registration and filing process, due date, and penalties. Whether you are a business or an individual, Bizfoc will help you navigate the complexities of professional tax, from registration to filing.
Below mentioned two categories are responsible for deducting and remitting professional tax in Maharashtra:
According to Rule 6 of PT Act Maharashtra, there are two types of PT certificates. These are as follows:
The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies, partnership firms, sole proprietors, and individual professionals. It is required to pay professional tax for both the business entity and its directors. Form V is used for registering as an employer.
Professional Tax Registration Certificate, commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee's salary and then deposit the same to the authorized state authority. Form II is used for registering as a self-employed individual.
As per Section 6 and Rule 12 of Maharashtra PT Act (Maharashtra State Tax on Professions, Trades, Callings, and Employment Act, 1976), only certain individuals are exempted from paying Professional tax:
Note: To claim exemptions, individuals or businesses must submit relevant documents as per Form VIII under Rule 12.
There are several documents required during the Professional Tax Registration in Maharashtra. Here is the complete list given in the table below according to the employed or registration type:
For Employers (PTRC Registration) | For Self-employed Individuals (PTEC Registration) |
---|---|
PAN card of the employer or company. | PAN card of the individual. |
Certificate of incorporation/ Partnership deed/ other business registration documents. | Proof of profession or business (e.g., registration certificates, trade licenses, professional licenses). |
Employee details (e.g., name, salary structure, and number of employees). | Proof of profession or business address (e.g., utility bills, rental agreement, etc.). |
Business’ address proof (e.g., utility bills, rental agreement, etc.). | Details of Bank Account. |
Professional tax payment challans (if the employer has already started paying PT). | |
Details of bank account. |
Before Professional tax filing, a company or individual must register themselves to obtain PTRC (For Employer) and PTEC (for employee/individual). The stepwise process on Maha GST Portal is as follows:
The complete tax slab of Professional tax Maharashtra, which is provided on the Maha GST Portal, is mentioned below:
Type | Category | Salary Range | Tax Amount |
---|---|---|---|
PTRC | Men (Employees) | Up to ₹7,500 | Nil |
Men (Employees) | ₹7,501 - ₹10,000 | ₹175 per month | |
Men (Employees) | Above ₹10,000 | ₹2,500 per annum (₹200/month; Feb: ₹300) | |
PTRC | Women (Employees) | Up to ₹25,000 | Nil |
Women (Employees) | Above ₹25,000 | ₹2,500 per annum (₹200/month; Feb: ₹300) | |
PTEC | Self-employed/Professionals | Not applicable | ₹2,500 per annum |
Small traders | Turnover more than ₹25 lakh | ₹1,000 - ₹2,500 per annum |
Category | Due Dates |
---|---|
Employers / PTRC Holders | 10th of Every Month |
Employee / PTEC Holders | June 30 (annually) |
The below mentioned are the applicable penalties:
Particulars | Penalties |
---|---|
Delay Payment Penalty | Penalty Amount: ₹100 per day of delay, up to a maximum of ₹5,000. |
Interest on Delayed Payment | Interest Rate: 1.5% per month or part thereof. |
Fines for Non-Filing of Returns | Fines are imposed for the non-filing or incorrect filing of professional tax returns. The amount can go up to ₹5,000 depending on the nature and duration of non-compliance. |
Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.
The aspect of professional tax in Maharashtra plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax, which is to be done by the employers of any profession or trade towards the respective legislation.
A person can register online through the Maharashtra government's Professional Tax Department website or by submitting a physical application form.
Payments can be done online via Maharashtra government's website or through designated banks and authorized centers.
Yes, Professional tax is applicable to all professions unless specifically exempted under the law.
Employers need to file returns monthly, while self-employed individuals may need to file annually.
Yes, every professional whether they are freelancers or consultants are liable to pay Professional Tax based on their income.
The employer should keep records of employee salaries, Professional Tax deductions, and payment receipts.