Applicable to Self-Employed Individuals

• Business owners, including proprietors, partners, directors, and company promoters, are liable for professional tax as self-employed persons.
  
• They must register under the Professional Tax Enrollment Certificate (PTEC) in the state where the business operates.
  
• PT is applicable if they are engaged in trade, commerce, consultancy, or any profession, whether with or without employees.
  
• Liability arises even when the business does not employ salaried staff or workers.
  

Income-Based Threshold Requirements

• Professional tax liability depends on the gross annual income of the business owner.
  
• States prescribe income slabs, and PT becomes payable only when the income exceeds the threshold (typically between ₹7,500 to ₹15,000 per month).
  
• If the annual income is below the exemption limit, the business owner may still need to register but pay nil tax.
  
• Some states exempt low-income or marginal businesses from paying PT, but still require compliance through returns.
  

Mandatory for Registered Entities

• Individuals who are:
  
  • Owners of registered businesses under GST or Shops and Establishments Act.
    
  • Partners in registered partnership firms or LLPs.
    
  • Directors or promoters of private limited/public companies.
    
  • Freelancers and consultants offering professional services independently.
    
• All such persons must obtain a PTEC registration and fulfill annual tax obligations.
  

Registration and Payment Obligations

• Eligible business owners must apply for PTEC through their state’s PT portal within the timeline prescribed (generally within 30 days of becoming liable).
  
• PT is typically paid once a year, with the due date commonly being 30th June.
  
• Non-compliance can lead to penalties, interest, and legal action by state tax authorities.
  

Exemptions for Certain Categories

• Business owners who are:
  
  • Senior citizens (aged 60 years and above).
    
  • Physically disabled persons with valid government certification.
    
  • Women exclusively engaged in home-based cottage industries (in some states).
    
• These individuals may be exempt from PT, subject to the submission of supporting documents during registration.