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 legal violation in states where PT is mandatory.
  
• Not registering additional branches that fall under different municipal jurisdictions.
  
• Overlooking the need for PTEC registration for the business entity itself, where applicable.
  

Incorrect or Incomplete Employee Deductions

• Applying wrong slab rates due to outdated configurations or manual errors.
  
• Deducting professional tax from employees who fall under exempt categories (e.g., low income, disabled, senior citizens).
  
• Failing to deduct tax from new employees from the month of joining.
  
• Continuing deductions for employees who have resigned or are transferred to another state.
  
• Applying uniform deductions across all employees without salary-based classification.
  

Delayed Tax Payment and Return Filing

• Missing monthly or quarterly payment deadlines, leading to penalties and interest.
  
• Filing returns late or not at all, even after making payments.
  
• Not reconciling tax deducted with tax paid and returns filed.
  
• Ignoring nil return filing when no tax is due but registration is still active.
  
• Submitting returns with incomplete or mismatched employee details.
  

Wrong Registration Details in Payments

• Using incorrect or invalid PTRC/PTEC numbers while making payments or filing returns.
  
• Paying tax for one state under the registration of another state.
  
• Errors in challan details such as wrong assessment year, period, or tax type.
  
• Not verifying auto-filled data before submitting returns or challans.
  
• Making duplicate payments without proper adjustment in future filings.
  

Poor Recordkeeping and Documentation

• Not maintaining proper records of salary registers, challans, return acknowledgments, and exemption proofs.
  
• Failing to preserve documents for the required audit period (usually 5–7 years).
  
• Inability to provide justification during inspections or audits due to disorganized records.
  
• Not documenting changes like employee exits, salary revisions, or address changes accurately.
  
• Ignoring follow-up on department notices or queries related to compliance lapses.