Last reviewed: 25 September 2026. Professional tax is the small tax that causes outsized confusion, because it is a state subject: some states charge it, some do not, and every state that does has its own slabs, forms and portals. Article 276 of the Constitution permits the levy and caps it at Rs 2,500 per person per year. Here is the whole map — what it is, where it applies, Maharashtra in depth, and how multi-state and remote teams should handle it.
PTEC vs PTRC — the distinction that decides your registrations
| PTEC (Enrolment) | PTRC (Registration) | |
|---|---|---|
| Who it covers | The entity or professional ITSELF — company, LLP, firm, director, freelancer | The entity as an EMPLOYER deducting from staff salaries |
| Amount | Fixed — Rs 2,500 p.a. in Maharashtra | Slab-wise per employee, deducted monthly |
| When needed | Within 30 days of starting business/profession | Before the first salary payment |
| Typical trap | “We have no employees, so no PT” — wrong; the entity itself owes PTEC | Hiring in another PT state without registering there |
Which states levy professional tax — and which do not
| Position | States |
|---|---|
| Levy PT (major) | Maharashtra, Karnataka, West Bengal, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Odisha, Bihar, Jharkhand, Assam, Meghalaya, Tripura, Sikkim, Manipur, Mizoram (a few others, e.g. Chhattisgarh, Nagaland and Puducherry, levy under their own enactments) |
| No PT | Delhi, Uttar Pradesh, Haryana, Rajasthan, Uttarakhand — and most union territories |
| Similar levy | Punjab — no tax called professional tax, but the Punjab State Development Tax (Rs 200 a month on those earning taxable income from employment, trade or profession) works much like one and is deducted by employers |
Rates and administration differ state to state (Tamil Nadu and Kerala, for instance, administer it through local bodies on a half-yearly cycle). Always confirm against the specific state Act before setting up payroll — the table above is the orientation map, not a substitute for the statute.
Maharashtra in depth — the state most of our readers operate in
| Monthly salary | PT — men | PT — women |
|---|---|---|
| Up to Rs 7,500 | Nil | Nil |
| Rs 7,501 – 10,000 | Rs 175 | Nil |
| Rs 10,001 – 25,000 | Rs 200 (Rs 300 in February) | Nil |
| Above Rs 25,000 | Rs 200 (Rs 300 in February) | Rs 200 (Rs 300 in February) |
- PTEC: Rs 2,500 per year for the entity (and applicable directors/professionals individually); the annual payment is due by 15 June, following the amendment to Rule 11(3) notified on 28 February 2026 (earlier 30 June). Confirm the date on the MahaGST portal for your enrolment.
- PTRC returns: monthly where the previous year's PT liability was Rs 50,000 or more; annual where it was below Rs 50,000. In the year of fresh PTRC registration, returns are monthly.
- Exemptions: senior citizens above 65, persons with 40%+ disability, parents of a disabled child, badli textile workers — and the practical NIL slab for women earning up to Rs 25,000.
- Delay costs: interest at 1.25% per month for the first month of delay, 1.5% per month for the second and third months, and 2% per month after that, plus penalty exposure; registrations themselves are quick, so arrears are the avoidable part.
Multi-state and remote teams — the modern problem
PT follows the state where the employment is exercised, not where the head office sits. A Thane-registered company with a hybrid team therefore reads like this:
| Employee location | PT position for the Maharashtra company |
|---|---|
| Thane / anywhere in Maharashtra | Maharashtra PTRC — deduct per the slab above |
| Bengaluru (Karnataka) | Karnataka PT applies — obtain Karnataka PTRC and deduct per its slab |
| Delhi / Gurugram / Noida | No PT — Delhi, Haryana and UP levy none |
| Kolkata (West Bengal) | West Bengal PTRC and slabs apply |
The same logic applies to branch offices and to directors (individual PTEC in states where they carry on their profession, as applicable). Remote-first companies routinely discover missing state registrations only during due diligence — run the mapping once and wire it into payroll.
Common mistakes we keep fixing
- Entity PTEC skipped because “we have no employees yet” — the enrolment is for the entity itself.
- Women's Rs 25,000 NIL threshold missed in Maharashtra payroll — over-deduction that annoys staff and needs refunds.
- February's Rs 300 slab treated as a software glitch and “corrected” back to Rs 200.
- Hiring in Karnataka/WB without local PTRC — the head-office registration does not travel.
- Annual PTEC payment made in year one, forgotten every year after.
Where this fits in your setup journey: PT is one of the operational registrations in our first-year compliance checklist, and Section 8 companies have the same obligations — see the Section 8 first-year guide. Payroll-side impact of the labour codes is covered in the employer guide to the new codes.
Frequently asked questions
What exactly is professional tax and who charges it?
A tax levied by STATE governments on professions, trades, callings and employment under Article 276 of the Constitution, which also caps it at Rs 2,500 per person per year. The Union government has nothing to do with it — which is why the rules change at every state border.
Which states have no professional tax at all?
Delhi, Uttar Pradesh, Haryana, Rajasthan and Uttarakhand levy no professional tax, and most union territories also do not. Punjab has no tax called professional tax, but levies the Punjab State Development Tax (Rs 200 a month), which works much like one. An employee working in the no-PT states has no PT deduction — even if the employer is a Maharashtra company.
What is the difference between PTEC and PTRC?
PTEC (Enrolment Certificate) is the entity’s/professional’s OWN tax — a company, LLP, firm, director or freelancer pays a fixed amount (Rs 2,500 a year in Maharashtra) for itself. PTRC (Registration Certificate) is the EMPLOYER-side registration to deduct slab-wise PT from employees’ salaries and deposit it. A company with staff typically needs both.
My company is in Maharashtra but my developer works from Delhi. Whose PT applies?
PT follows the state where the employment is exercised. The Delhi-based employee suffers no PT (Delhi levies none); a Bengaluru-based employee falls under Karnataka PT, needing a Karnataka PTRC; your Thane staff fall under Maharashtra. Multi-state teams mean multi-state PT registrations — this is the most-missed compliance in remote-first companies.
Is professional tax deductible from income tax?
Only under the old regime for salaried employees. PT actually paid is deductible from salary income under Section 16(iii) of the 1961 Act (section 19 of the Income-tax Act, 2025 from tax year 2026-27) only if you opt for the old regime; under the default new regime (section 202, old 115BAC) it is not deductible. For the self-employed, PT paid on their own profession or business is claimed as a business expense.
Who is exempt from professional tax in Maharashtra?
Senior citizens above 65, persons with 40%+ disability, parents of a child with disability, and badli textile workers, among others. Also practical: women earning up to Rs 25,000 a month suffer NIL deduction under the salary slab — a threshold many payroll teams still miss.
PTEC and PTRC registrations, arrears regularisation and slab-correct payroll wiring, Maharashtra and beyond.
PTEC / PTRC ServicesPF, ESIC & PT ComplianceTalk to usGeneral information as of 25 September 2026, not professional advice. State PT Acts, slabs and thresholds change by notification — verify the current position for each state before acting. Consult a professional for your specific facts.