All About Professional Tax payments

Making a professional tax online payment or e-payment based on the professional tax slab is advantageous as one does not need to visit the PT office every month or even download the PT Enrolment Certificate online.

What is Professional Tax?

Professional Tax is a direct tax which is levied monthly by most Indian State Governments on your income from salary, trade, profession or calling.

Under Clause (2) of Article 276 of the Constitution of India,1949, state governments were given the power to come up with slabs for income and the corresponding professional tax amounts. Till date, the maximum Professional Tax amount that can be levied by any state government is INR 2,500. 

Who needs to pay the professional tax

Professional tax payment is a revenue source for the government. The maximum amount for professional tax online payment per annum is Rs 2,500 and if salaried, follows the declared pre-determined professional tax slab schedule.

Traders, architects, company secretaries, lawyers, doctors, chartered accountants etc. have to mandatorily make a professional tax payment to the Commercial tax department of the state.

Private company employees also need to pay professional tax payment/e payment. Generally, this deduction is made based on the professional tax slab defined by the government every month. The employer is responsible to remit the professional tax payment amounts collected to the state exchequer using a professional tax online payment method.

In the case of a company, its partners, directors, self-employed professionals, and owners of trading firms the tax may be fixed on the turnover basis or on a fixed amount of Rs 2,500 per annum irrespective of turnover.

How to make a professional tax e payment:

To pay the professional tax payment one has to register with the Commercial Tax Department and obtain a professional tax payment number or Enrollment Certificate (EC).

The payment of professional tax can also be made through a paper professional tax challan at the District Sales Tax Office where you may have to fill in the professional tax challan, have it stamped and sealed and make a cash payment at the counter or by cheque, as directed by the department.

A professional tax e payment can also be made online by using the new EC and RC numbers to make e-payments through a professional tax challan. Making a professional tax online payment or e-payment based on the professional tax slab is advantageous as one does not need to visit the PT office every month or even to download the PT Enrolment Certificate online.

Making Online Professional Tax Payment:

If you have your professional tax payment/enrollment number handy you can pay online use this professional tax online payment step-by-step guide.

  • Use only the official state government professional tax website to make a professional tax e payment.
  • To find the portal search online with ‘Professional tax payment’ and city name.

professional tax

  • Use the left-side menu bar to click on Karnataka Professional Tax-KTP tab assuming you are in Karnataka.
  • The website will direct you to choose between professional tax challan options of a registered employer and self-employed professional.
  • Now enter your Professional Tax Payment Registration Number, company name, and details as prompted.

professional tax online payment

  • Then choose the option from monthly or annually, depending on the demands of the department and rules.
  • Next, enter the month and year for which you are paying the tax.
  • Enter the professional tax payment amount column and the penalty if any is levied.
  • Enter the bank details from which you propose to make the payment and your registered mobile number.
  • Hit the enter tab and verify your details before you click on the submit tab.
  • On the next screen that loads click on the tab that says ‘Click here for payment’.
  • It will take you to your bank’s net banking page.

professional tax e payment

  • Sign in and make the payment for the due professional tax payment.
  • Save the transaction details and professional tax challan in pdf format for future reference.

The penalty clause:

Paying the online professional tax payment in time is important. Non-compliance is penalized at 10 per cent of the due online p tax payment. A delay in obtaining the registration number is penalized mostly at the rate of Rs 5/- per day from the missed date. To file late returns of the professional tax online payment you are levied a penalty of Rs 1,000/- if you pay within a month of the due date or Rs 2,000/- if it is over a month and later.

Professional Tax slabs in different states

Before we get into the details of the Professional Tax slabs for each State, let’s look at Union Territories and States that do not levy PT.

States & UTs without PTStates & UTs with PT
Andaman and Nicobar IslandsAndhra Pradesh
Arunachal PradeshAssam
ChandigarhBihar
ChhattisgarhGujarat
Dadra and Nagar HaveliJharkhand
Daman and DiuKarnataka
DelhiKerala
GoaMadhya Pradesh
HaryanaMaharashtra
Himachal PradeshManipur
Jammu and KashmirMeghalaya
LadakhMizoram
LakshadweepNagaland
RajasthanOdisha
Uttar PradeshPuducherry
UttarakhandPunjab
Sikkim
Tamil Nadu
Telangana
Tripura
West Bengal

Here are the income slabs and corresponding PT amounts for States and Union Territories where Professional Tax is applicable.

Andhra Pradesh
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 15,0000
15,001 – 20,000150
Above 20,000200

Assam
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 10,0000
10,001 – 15,000150
15,001 – 25,000180
Above 25,000208

Bihar
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 25,0000
25,001 – 41,66683.33
41,667 – 83,333166.67
Above 83,334208.33

Gujarat
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 5,9990
6,000 – 8,99980
9,000 – 11,999150
Above 12,000200

Jharkhand
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 25,0000
25,001 – 41,666100
41,667 – 66,666150
66,667 – 83,333 175
Above 83,334208 (for 11 months); 212 (12th month)

Karnataka
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 15,0000
Above 15,001200

Kerala
Salary/Income (INR) half-yearlyProfessional Tax Amount (INR) half-yearly
Up to 1,9990
2,000- 2,99920
3,000 – 4,99930
5,000 – 7,499 50
7,500 – 9,99975
10,000 – 12,499100
12,500 – 16,666125
16,667- 20, 833166
Above 20,834208

Madhya Pradesh
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 18,7500
18,751 – 25,000125
25,001 – 33,333167
Above 33,334208 (for 11 months); 212 (12th month)

Maharashtra
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 7,5000
7,501 – 10,000175
Above 10,001209 (for 11 months); 300 (12th month)

Manipur
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 4,2500
4,251 –  6,250100
6,251 – 8,333167
8,334 – 10,416200
Above 10,417208 (for 11 months); 212 (12th month)

Meghalaya
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 4,1660
4,167- 6,25016.50
6,251 – 8,33325
8,334 – 12,50041.50
12,501 – 16,66662.50
16,667 – 20,83383.33
20,834 – 25,000104.16
25,001 – 29,166125
29,167 – 33,333150
33,334 – 37,500175
37,501 – 41,666200
Above 41,667208

Mizoram
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 8330
834 – 1,2508
1,251 – 166712.5
1668 – 2,08316.6
2,084 – 2,91720.83
2,918 – 4,16725
4,168 – 6,25041.6
6.251 – 8,33362.5
8,334 – 12,50083.3
12,501 – 16,667125
16,668 – 20,833166.6
Above 20,834208.3

Nagaland
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 4,0000
4,001- 5,00035
5,001- 7,00075
7,001- 9,000 110
9,001- 12,000180
Above 12,001208

Odisha
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 13,3040
13,305 – 25,000125
Above 25,001200 (for 11 months); 300 (12th month)

Puducherry
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 16,6660
16,667 – 33,33341.66
33,334 – 50,00083.33
50,001 – 66,666 125
66,667 – 83,333166.67
Above 83,334 208.33

Punjab
Taxable Income (INR) per monthProfessional Tax Amount (INR) per month
Above 20,833200

Sikkim
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 20,0000
20,001 – 30,000125
30,001 – 40,000150
Above 40,001200

Tamil Nadu
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 3,5000
3,501 – 5,00022.5
5,001 – 7,50052.5
7,501 – 10,000 115
10,001 – 12,500171
Above 12,501208

Telangana
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 15,0000
15,001 – 20,000150
Above 20,001200

Tripura
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 5,0000
5,001 – 7,00070
7,001 – 9,000120
9,001 – 12,000 140
12,001 – 15,000190
Above 15,001208

West Bengal
Salary/Income (INR) per monthProfessional Tax Amount (INR) per month
Up to 10,0000
10,001 – 15,000110
15,001 -25,000130
25,001 – 40,000 150
Above 40,001200


Professional Tax – FAQs

1) For a salaried individual, is it mandatory to pay professional tax?

Yes. For individuals who draw income from salary, payment of professional tax is mandatory.

2) Who needs a Certificate of Registration (RC)?

All employers who pay Professional Tax to the State Government on behalf of the employees need Certificate of Registration (RC).

3) What types of Profession Taxpayers exist?

Profession Taxpayers are of two types based on the following criteria:

    • PTRC or Profession Tax Registration Certificate: Employers who have employed more than 1 worker must obtain the PTRC. Such an employee must draw a salary from the employer which must be more than the prescribed limit for PT to be levied.
    • PTEC or Profession Tax Enrollment Certificate: For any individual who is in a profession, calling or trade and is listed under one of the classes mentioned in Schedule I (second column) must obtain PTEC.

4) Is registration and enrolment for PT mandatory for businesses?

Yes. All businesses (except those exempted) must obtain an Enrolment Certificate and a Registration Certificate — for PT — withing 30 days of commencement of business.

5) For delay in PT registration, what is the penalty?

In a case where the Certificate of Enrolment is not obtained by the employer on time, a penalty amounting to INR 1,000 will be levied. Moreover, any pending tax accumulated since the commencement of business must also be paid in full.

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Subin
Subin

One of the prime contributors for this blog. I have 5 years of experience in SEO, Digital Marketing, Content Marketing, and have knowledge in topics like Tax, HR, Recruitment & Staffing. A free-spirit with a passion for travelling & music.

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