Placement in the Deductions Section Professional tax is listed under the deductions column of the payslip. It appears alongside other statutory deductions such as provident fund or income tax. It is presented as a separate line item for clarity. The label used is...
Header Section Includes the title of the form such as “Professional Tax Declaration Form” or “Employee Declaration Form”. Displays the name and address of the employer or business entity. Contains the registration number (PTRC or PTEC) and financial year. May include...
Online Challan Generation via State Portal Most states in India offer online challan generation through their official professional tax portals. Users must log in using their PTRC (employer) or PTEC (self-employed) registration credentials. After selecting the...
No Expiry for Active Registration Professional tax registration certificates—PTRC for employers and PTEC for self-employed individuals—do not have a fixed expiry date. Once granted, the registration remains valid indefinitely as long as the business or profession is...
Incorrect or Incomplete Employee Data Failing to update employee salary changes or new joiners in the returns. Including employees who are exempt from professional tax liability. Providing mismatched or misspelled employee names and IDs. Incorrect classification under...
Employee Salary and Deduction Records Maintain monthly records of employee names, designations, and gross salaries. Record the professional tax amount deducted from each employee's salary. Retain pay slips or salary registers showing tax deduction entries. Keep...
Understand When Transfer is Required Transfer of professional tax records may be needed when a: Business shifts from one jurisdiction to another within the same state. The company merges, demerges, or restructures its branches or entities. A professional relocates and...
Understand State-Wise Requirements Professional tax registration is state-specific, meaning registration is required in each state where a business has a branch. If your organization operates in multiple states, you must obtain separate registrations for each...
Constitutional Maximum Limit The Constitution of India, under Article 276, sets the maximum annual limit of professional tax at ₹2,500 per person. This cap applies uniformly across all states, regardless of income or profession. No state is allowed to exceed this...
For Employers (PTRC Holders) Employers are typically required to pay professional tax every month. The tax must be deducted from employees’ salaries and paid to the state by the last day of each month. Some states offer quarterly or annual options for employers with...