Maharashtra professional tax on salaries is capped at ₹2,500 a year: men pay ₹175 a month between ₹7,501 and ₹10,000 and ₹200 a month above that, with ₹300 in February, while women pay nothing up to ₹25,000 a month. This guide explains how employers apply the Maharashtra professional tax slab in payroll, who needs PTRC and PTEC, how professional tax for women in Maharashtra works, and the PTRC due date rules after the 2026 amendment.
How is the Maharashtra professional tax slab applied each month?
The employer reads each employee's gross monthly salary against Schedule I of the Maharashtra Profession Tax Act 1975 and deducts the amount for that slab. Men pay nothing up to ₹7,500 a month, ₹175 up to ₹10,000 and ₹200 above, with ₹300 in February. Women pay nothing up to ₹25,000.
A few practical points follow from the monthly test:
- Use gross salary or wages before deductions, as the calculator does, not take-home pay.
- The slab is checked every month, so an increment that takes a man past ₹10,000 moves him from ₹175 to ₹200 from that month.
- The ₹175 slab has no February top-up, so a man earning ₹9,000 a month pays ₹2,100 a year, not ₹2,500.
- Section 27A of the Act exempts some people, including persons with certain disabilities. A 2024 amendment (Maharashtra Act XXXII of 2024) provides an exemption for members of the Central Armed Police Forces; check the conditions in section 27A.
Professional tax for women in Maharashtra: the ₹25,000 exemption
Since 1 April 2023, women earning up to ₹25,000 a month pay no professional tax in Maharashtra. Above ₹25,000, they pay ₹200 a month and ₹300 in February, the same ₹2,500 a year as men. The change came through Maharashtra Act XIX of 2023, which amended Schedule I.
The gap between the two slabs is wide, so payroll must record each employee's gender correctly. On the same salary of ₹25,000, a man pays ₹2,500 a year and a woman pays nothing. At ₹25,001, both pay ₹2,500. Payroll templates built before April 2023 may still deduct tax from women earning up to ₹25,000, who are now exempt.
Worked example: PTRC liability for a 12-person payroll
A made-up Pune company, Bluepeak Foods Private Limited, has 12 employees in October 2026. Its professional tax under PTRC is ₹1,725 a month, ₹2,325 in February and ₹21,300 for the year, as the calculator's payroll mode shows.
| Employees | Monthly salary | Tax each a month | February | Monthly total |
|---|---|---|---|---|
| 3 men | ₹9,000 | ₹175 | ₹175 | ₹525 |
| 4 men | ₹35,000 | ₹200 | ₹300 | ₹800 |
| 3 women | ₹22,000 | Nil | Nil | Nil |
| 2 women | ₹40,000 | ₹200 | ₹300 | ₹400 |
Example. The yearly total is ₹1,725 × 11 + ₹2,325 = ₹21,300. That is below ₹50,000, so in the following year the company files its PTRC return once a year rather than monthly. Separately, the company pays ₹2,500 a year under its own PTEC, due by 31 March. A payroll of 20 employees in the top slab reaches exactly ₹50,000 a year (20 × ₹2,500) and moves to monthly returns the next year.
Who needs PTRC, PTEC or both in Maharashtra?
An employer that pays salaries needs PTRC to deduct professional tax and pay it to the state. The business itself needs PTEC to pay its own ₹2,500 a year. A company, LLP or firm with staff usually needs both; a sole professional with no employees needs only PTEC.
| Who | PTRC | PTEC |
|---|---|---|
| Private limited company with staff | Yes | Yes, ₹2,500 a year |
| LLP with staff | Yes | Yes, ₹2,500 a year, and each partner pays ₹2,500 |
| Partnership firm | Yes, if it has staff | Each partner pays ₹2,500 a year |
| Person registered under Maharashtra GST | If it has staff | Yes, ₹2,500 a year |
Employees do not register for their salary; the employer deducts the tax under its PTRC. New companies get profession tax registration at incorporation. The Ministry of Corporate Affairs made it mandatory through the SPICe+ form for companies incorporated in Maharashtra from 23 February 2020, and section 5(3A) of the Act, in force from 22 July 2020, requires every company incorporated after that date to obtain both PTEC and PTRC at incorporation.
PTRC due date: monthly or annual return?
An employer whose professional tax for the previous year was ₹50,000 or more files monthly returns, due by the 15th of the following month. Others file one annual return, due by 15 March. A notification dated 28 February 2026 amended Rule 11(3) of the Profession Tax Rules 1975 to move these dates to the 15th.
Tax deducted is paid with the return. Some dates to plan around:
- Monthly filer: professional tax deducted from October 2026 salaries is due by 15 November 2026.
- Annual filer: the return for 2026-27 is due by 15 March 2027.
- PTEC: the business's own ₹2,500 for 2026-27 is due by 31 March 2027.
A late return costs ₹200 if filed within 30 days of the due date and ₹1,000 after that, under section 6(3). For 2025-26, the department revised the PTRC payment and return due date to 15 March 2026, and Trade Circular 2T of 2026 (17 April 2026) covers exemption from the late fee for March 2026 returns. Check the notices on the MahaGST profession tax page before each due date, because the department also publishes which periodicity applies for 2026-27.
Common mistakes with Maharashtra professional tax
Most errors come from payroll settings that predate 2023 or 2026. Review these once a year, ideally before the February payroll run.
- Deducting ₹200 in February instead of ₹300 in the top slab.
- Applying the men's slab to women earning up to ₹25,000.
- Adding a February top-up to the ₹175 slab, which has none.
- Using due dates from before the 2026 amendment instead of the 15th.
- Filing annually when the previous year's tax was ₹50,000 or more.
- Forgetting the business's own ₹2,500 under PTEC, which is separate from the tax deducted from staff.
Professional tax outside Maharashtra and other payroll deductions
If you have staff in other states, each state applies its own slabs; see professional tax by state for Karnataka, West Bengal, Gujarat and others.
Employees can claim the tax as a deduction from salary under section 19 of the Income-tax Act 2025 only under the old tax regime. For PF and ESI on the same payroll, use the PF and ESI calculator. If you are setting up a new company, private limited company registration covers the incorporation filings.
How Ofin can help with PTRC and PTEC
Ofin registers your business for PTRC and PTEC from ₹7,899, with the government fee included, and sets you up for the monthly or annual PTRC returns and the yearly PTEC payment due by 31 March. See professional tax registration.
