Limited Financial Impact For micro-enterprises with few employees or low income, the professional tax burden is relatively small. The maximum professional tax payable by any individual is ₹2,500 annually, as per constitutional limits. If the business owner has no...
Identification of Cancellation Form The form required to cancel professional tax registration varies by state and is usually titled “Application for Cancellation of PTRC/PTEC”. It may be available under names such as Form PT-ESC, Form-Cancellation, or Deregistration...
Access the Official State Tax Portal Visit the official professional tax portal of the respective state where you are registered. Use your valid PTRC (for employers) or PTEC (for self-employed) credentials to log in. Ensure that you select the correct registration...
Log in to the State Tax Portal Visit the official professional tax portal of the respective state where the payment was made. Use your PTRC (Professional Tax Registration Certificate) or PTEC (Professional Tax Enrollment Certificate) credentials to log in. Ensure that...
Determine Applicable State Slab Rates Begin by referring to the state-specific professional tax slab structure, which varies across different Indian states. Identify the monthly tax liability per employee based on their gross salary and applicable slab. Ensure that...
Non-Registration or Delayed Registration Failing to register under the Professional Tax Registration Certificate (PTRC) after employing staff. Delays in obtaining registration despite crossing the threshold for applicability. Operating without a valid PTRC, which is a...
Configuration of State-Specific Rules Payroll software is first configured to apply the professional tax rules specific to each state. This includes setting up income slabs, deduction amounts, and exemption criteria. Each employee is mapped to their location or state...
Excess Tax Payment A refund may be claimed if professional tax is paid in excess of the actual liability. This can happen due to wrong slab selection, duplicate payment, or system error. The excess must be clearly provable through payment challans, return filings, and...
Intra-State Transfers (Within the Same State) When an employee is transferred within the same state, the professional tax continues under the existing PTRC registration of the employer. There is no need for a new registration or change in the professional tax number....
Low Income Earners Individuals earning below the minimum salary threshold defined by the respective state are exempt. The threshold typically ranges from ₹7,500 to ₹15,000 per month, varying by state. Salaried employees and self-employed professionals below this limit...