Professional Tax Return Filing
- Art Teacher
- London, UK
- 5-7 Hrs
Ever wondered what Professional Tax is and why you have to file a return for it even if you’re already paying Income Tax or GST? Professional Tax (PT) is a state-level tax levied on income earned by way of profession, trade, calling, or employment. It is mandatory for employers, freelancers, consultants, and even salaried individuals in many states to register and file returns under PT regulations. The amount is usually small—often ranging between ₹200 to ₹2,500 annually—but non-compliance can lead to penalties. If you’re an employer, you’re responsible not just for registering but also for deducting PT from employees’ salaries and filing returns monthly, quarterly, or annually depending on your state. Sounds complex? It can be, because each state has its own rules, forms, and deadlines.
- Professional Tax Registration Certificate (PTRC)
- Professional Tax Enrollment Certificate (PTEC)
- Employee salary details and attendance records
- Challan copies of PT payments made
- Employee-wise PT deduction summary
- PAN card & Aadhaar card of the business owner/director
- Address proof of the business/establishment
- Registration documents of the business
- Login to the respective state’s Commercial Taxes Department portal
- Navigate to ‘Professional Tax’ → Return Filing
- Select period for which return is to be filed (monthly/quarterly/annually)
- Fill in the employee details and PT deductions
- Upload required declarations and documents (if applicable)
- Pay the tax online via net banking or challan
- Generate and download the acknowledgement or receipt
FAQs
PTRC (Professional Tax Registration Certificate) is for employers to deduct and deposit professional tax from employees’ salaries, while PTEC (Professional Tax Enrollment Certificate) is for entities and professionals to pay professional tax on their own income or revenue.
A company can have multiple PTRCs for different branches, and must enroll for each separately, as returns must be filed for each registration certificate as per applicable procedures.
PT return must still be filed even if business activities are suspended or during a lockdown, unless specifically exempted or an official government relief is announced; compliance is generally required until such relief is granted.
The maximum penalty for defaulting on professional tax payment is typically 10% of the tax due for non-payment or delay, with late returns attracting a penalty between ₹1,000–₹2,000, depending on the state; additional interest may also be charged.
Yes, each partner may be required to enroll separately under PTEC, depending on state law.