While its come to Bussiness Support caadvocatecs.com is your partner


Professional tax is much more than the tax which is levied only on professionals. This professional tax covers taxes on all kinds of professions, trades, and employment and is levied based on the income of such profession, trade and employment. This tax is based on the income and is a tax which is levied by the State, but it has different rates of interest in various states. For this very same reason, every state has its own laws and regulations which govern the professional tax of that particular state.


The Professional tax is that tax which is levied on the income which is earned by the employees on rendering their services. Each and every professional, the Directors of Company, Designated Partners of the LLP or any other employer maybe of a Company or an LLP, they all are under the obligation for seeking registration. This is deducted from the salary of the employees. This deducted professional tax from the employees has to be deposited and the return has to be deposited and the return of the same has to be filed. 


PROCedure for the Tax Return

In general, a professional tax can be paid either via online or offline. Depending on the State’s requirements, there may be a need to file a professional tax return from time to time or at specific intervals, because it is a State-Specific query.


Consequences of non-filing

Since this comes under the State-specific category, the penalty or penal interest may depend on the respective State’s legislation. After the professional tax becomes applicable it would be levied by all such states for not registering. Furthermore, if the payments are not made on time, i.e within the due date, then also penalty can be levied on the taxes.

Get the Best Price For Your Service

Select State

Select Ratings

Search By Name/Location


Get an instant best price for your services

FAQ - Frequently asked questions

What is a professional tax and when is it levied?

Professional tax is a state-level tax which is imposed on income earned by way of profession, trade, calling or employment. The tax is based on slabs depending upon the income of an individual who may be self-employed or working as an employee of an entity. At present, the maximum tax that can be imposed is restricted to is Rs. 2500/-.

What is the enrolment certificate and what is the registration certificate?

Every employer in specific states is required to deduct taxes from salary when paid to one or more employees when payment made exceeds Rs 5000(this limit is for Maharashtra) and deposit with the state government. That entity is required to obtain a registration certificate. When a person is employed in the profession by two or more employers and is getting salary/wages exceeding Rs. 5000 but employer is not deducting professional tax then the individual needs to get enrolment certificate from authority

Is Professional tax imposed in every state in India?

Professional tax is imposed only in following States: Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

Who is responsible for deducting the tax and depositing the same with Government?

In case of individuals who are self-employed, the tax has to be paid by the individual himself In the case of employed individuals, the liability is on the employer

Can the professional tax liability amount be paid in a lump sum?

In certain states, there is a concept of composition scheme. For e.g. in case of Maharashtra, the government announced a composition scheme under which any person liable to make payment to government at a rate of Rs. 2500 may make a lump sum payment in advance of Rs. 10,000 and his liability to pay for 5 years will be discharged.

What will be the other costs in the registration process?

The plan price covers all professional fees and the convenience charge. Since Professional tax is state-level tax the applicable govt. charges vary from state to state. Government charges will be charged on the actual basis.

Which are the specific cities where the service will be delivered?

The service is state-specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.