Professional tax registration is done state by state, and in Maharashtra it has two parts: a registration certificate (PTRC) that lets an employer deduct professional tax from salaries, and an enrolment certificate (PTEC) under which the business, its partners or a professional pay their own tax. The tax is capped at ₹2,500 a year per person by Article 276(2) of the Constitution, and an employer needs a separate registration in each state that levies it where staff work.
Who needs PTRC and PTEC registration?
An employer paying salaries in a state that levies professional tax needs an employer registration, called PTRC in Maharashtra. In Maharashtra a company or LLP, and each partner of a firm or LLP, also needs an enrolment (PTEC) and pays ₹2,500 a year. Employees never register: their employer deducts the tax.
Schedule I of the Maharashtra Act fixes ₹2,500 a year for these enrolled categories, among others:
- A limited liability partnership (entry 18A), and each partner of an LLP engaged in a profession, trade or calling (entry 19(b)).
- Each partner of a partnership firm, whether or not the firm is registered (entry 19(a)).
- Persons registered under the Maharashtra GST Act 2017 (entry 20A).
| Your situation | Employer registration (PTRC) | Enrolment (PTEC) |
|---|---|---|
| Company with staff in Pune | Yes | Yes |
| LLP with two partners and no staff | No | LLP and each partner, ₹2,500 each |
| GST-registered proprietor with three taxable employees | Yes | Yes, ₹2,500 a year |
| Salaried employee | No | No |
| Company with staff only in Delhi | No | No |
Which states require professional tax registration in 2026?
At least 17 states levy professional tax on salaries, including Maharashtra, Karnataka, West Bengal, Gujarat, Tamil Nadu, Telangana and Andhra Pradesh. Delhi, Haryana, Uttar Pradesh, Rajasthan and ten other states and union territories levy none, and Odisha stopped charging it from 1 April 2026.
- Levy it on salaries: Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala and Tamil Nadu (both through local bodies), Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Nagaland, Sikkim, Telangana, Tripura and West Bengal.
- No tax on salaries: Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Goa, Arunachal Pradesh, Jammu and Kashmir, Ladakh, Chandigarh, Andaman and Nicobar Islands, Lakshadweep, and Dadra and Nagar Haveli and Daman and Diu.
- Abolished: Odisha, from 1 April 2026, by a Repeal Ordinance dated 21 April 2026 listed by the Odisha Finance Department. Dues for earlier periods can still be recovered. An ordinance must later be replaced by an Act, so check that page for the current position.
- Confirm with the state: Mizoram, Puducherry, Punjab (which has a State Development Tax) and Chhattisgarh, where published sources conflict.
The test is where each employee works, not where the company is registered. A Pune company with a sales team in Bengaluru deducts Karnataka tax for that team under a Karnataka employer registration. Rates differ widely, so compare them with professional tax by state before you set up payroll.
Do new companies get professional tax registration at incorporation?
Yes, in three states. The Ministry of Corporate Affairs makes profession tax registration a mandatory part of SPICe+ incorporation for new companies in Maharashtra from 23 February 2020, West Bengal from 12 March 2020 and Karnataka from 8 October 2020. LLPs, firms and proprietors still apply separately.
Maharashtra also wrote the rule into its own Act. Section 5(3A), inserted by Mah. Act XX of 2020 and deemed in force from 22 July 2020, says a company incorporated after that date shall obtain both the enrolment and the registration certificate at the time of incorporation. A new proviso to section 6(1) adds that such an employer starts filing returns only after its liability to pay tax begins, and the state amended rule 11A on the first return filed by companies on 7 August 2020. A dormant new company therefore holds both numbers but has no PTRC return to file until it pays salaries.
How to apply for professional tax enrolment and registration online
Apply on the state's own portal: in Maharashtra, the Maharashtra GST Department's portal handles both PTEC and PTRC, and payment is made there too. Work out which certificates you need first, then apply, and confirm the current form and document list on the portal, because states revise them.
- List every state where you pay salaries, and every entity or partner that carries on a profession, trade or calling there.
- Work out the monthly deduction for your payroll with the Maharashtra Professional Tax Calculator, and the yearly enrolment tax.
- Apply online for the employer registration and the enrolment, with the documents the portal asks for.
- Pay the enrolment tax for the current year by 31 March, as section 8(2) of the Maharashtra Act requires.
- Deduct tax from salaries from the start of liability and file PTRC returns on time.
Apply as soon as liability starts: the Maharashtra Act charges a late employer by the day and an unenrolled person interest by the month.
Watch out. On 20 October 2026, the MahaGST portal's Important Updates still said that online PT registration and return filing are disabled, citing Trade Circular 01T of 2026, and that unregistered persons can pay with their PAN. Check that notice before you apply.
What does late professional tax registration cost?
In Maharashtra, an employer that does not apply in time can be fined ₹5 for each day of delay under section 5(5), after a hearing. A person who should have enrolled pays simple interest of 1.25% for each month or part of a month on the unpaid tax, from 1 July of the unenrolled year until payment, under section 9(3A).
The Act also limits how far back the department can go. For an enrolment or registration certificate granted on or after 1 April 2017, past liability cannot exceed four years before the year of grant, or the year proceedings begin if earlier (section 3(2) and section 4A). A year of PTRC delay can mean a penalty of up to ₹1,825 (365 days × ₹5).
Example. Tealstone Design LLP, a made-up Pune firm with two partners, started in April 2025 but enrolled and paid on 20 June 2026. For 2025-26 it owed ₹7,500: ₹2,500 for the LLP and ₹2,500 for each partner. Interest ran from 1 July 2025 for 11 months and 20 days, counted as 12 months, so 15%, or ₹1,125. Its total for that year came to ₹8,625.
What happens after professional tax registration?
Two cycles begin. The enrolment tax is paid every year by 31 March. Under the employer registration, you deduct tax from salaries and file returns: monthly by the 15th if last year's tax was ₹50,000 or more, otherwise one annual return by 15 March, under rule 11(3) as amended on 28 February 2026.
- A late return costs ₹200 if filed within 30 days of the due date and ₹1,000 after that, under section 6(3).
- The MahaGST notifications page posts due-date changes and late fee waivers, such as Trade Circular 2T of 2026 (17 April 2026) for March 2026 returns, and the return periodicity for 2026-27.
- Since 1 April 2023, women earning up to ₹25,000 a month pay no professional tax in Maharashtra.
- Employees can claim the tax as a deduction from salary under section 19 of the Income-tax Act 2025 (section 16 of the 1961 Act) only under the old tax regime.
The same payroll usually triggers PF registration at 20 employees and ESI registration at 10.
Common mistakes with professional tax registration
Most problems come from treating professional tax as one national, one-time registration. It is levied state by state, Maharashtra splits it into two certificates, and each partner's enrolment is separate from the firm's.
- Taking PTRC for payroll but not PTEC for the business, or the reverse.
- Enrolling the LLP but not each partner, or missing any partner of a firm.
- Registering only in the head office state while staff work in Karnataka or West Bengal.
- Deducting Odisha tax for April 2026 onwards.
- Applying the old women's slab instead of the ₹25,000 nil limit.
- Applying again for a Maharashtra company incorporated on SPICe+ after 22 July 2020, which already holds both certificates.
How Ofin handles professional tax registration
Ofin's CAs, CSs and legal professionals confirm which certificates you need in each state, prepare and verify the application and documents, and file your PTEC and PTRC registration 100% online, with dedicated support throughout. The fee is ₹7,899, with the government fee included, and we reply within 24 hours. Share your states and headcount to get a fixed-price proposal, or see professional tax registration in Mumbai.
