Professional tax is a tax levied by some states on professions, trades, callings and employment, under the Constitution and each state's own law. The maximum is ₹2,500 per person per year. Employers in those states register to deduct it from salaries and pay it to the state, and businesses and professionals usually register to pay it for themselves.
Which states levy professional tax?
States such as Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Telangana and Andhra Pradesh levy professional tax, while some others, such as Delhi, do not. Check the current rules of the state where your office or employees are located.
Two kinds of registration
| Registration | Who takes it | What it covers |
|---|---|---|
| Employer registration | Businesses with employees | Deducting tax from salaries and paying it to the state |
| Enrolment | The business, partners, directors or professionals | Paying professional tax for themselves |
How to register
- Open the state tax portalMost states accept online applications.
- Fill business and employee detailsEnter the address, constitution and number of employees.
- Upload documentsPAN, address proof and constitution documents.
- Get the certificateThen deduct, pay and file returns on the state's schedule.
Frequently asked questions
What is the maximum professional tax?
₹2,500 per person per year.
Is professional tax applicable in every state?
No. Only some states levy it, and the slabs and due dates are set by each state.
Who deducts professional tax from salaries?
The employer, who then pays it to the state government.
Is professional tax deductible for income tax?
Yes. Professional tax paid is allowed as a deduction from salary income.
How BuyGenix Solutions helps
We handle the application or filing, check the details match your other registrations, and keep track of deadlines and renewals. BuyGenix members can also see live buyer requirements from importers in India and abroad.
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BuyGenix Solutions handles professional tax registration and every related registration your business needs, from documentation to filing.
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