In Maharashtra, compliance with Professional Tax regulations is a legal requirement for individuals and businesses engaged in professional or commercial activities. Whether you are a salaried employee, a self-employed professional, or a business owner, the state government mandates the payment of Professional Tax under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.
To ensure smooth regulation and collection, the law requires businesses and individuals to obtain the appropriate Professional Tax Registration. The type of registration depends on the business structure and whether employees are engaged.
PTEC stands for Professional Tax Enrolment Certificate, which is mandatory for individuals and entities engaged in any trade or profession in Maharashtra. This includes:
Under PTEC, you are required to pay your own professional tax directly to the government. The maximum tax payable is ₹2,500 per year, which must be paid in advance by 30th June for the financial year.
An important point to note: a director or partner is liable to pay this tax only once, no matter how many companies or firms they are associated with.
PTRC stands for Professional Tax Registration Certificate, which is required by businesses and employers in Maharashtra who have employees on their payroll. Under PTRC, the employer is responsible for deducting professional tax from employees’ salaries and depositing it with the government.
Key points about PTRC:
In short, PTEC is for individuals/professionals to pay their own tax, while PTRC is for businesses/employers to deduct and pay tax on behalf of their employees.
Exempt Category | Reason for Exemption |
Senior Citizens | Individuals above 65 years of age |
Parents of Disabled Children | Parents of children with permanent physical disability or mental retardation |
Persons with Disability | Individuals with 40% or more disability, including blindness or permanent disability |
Women Agents under Schemes | Women working as agents under Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings |
Armed Forces Personnel | Members of Army, Navy, Air Force, and civilian staff in defense services |
Textile Badli Workers | Temporary/Badli workers employed in the textile industry |
Low-Income Individuals | Persons whose income is below the taxable limit under the Act |
In Maharashtra, professional tax is applicable to a wide range of individuals and entities engaged in employment, trade, or profession. The responsibility to pay differs depending on whether you are an employee, employer, or self-employed.
Category | Who Pays |
Salaried Employees | Professional tax is deducted by the employer from the employee’s salary and deposited with the government. |
Employers | Every business or organization with employees must register under PTRC (Professional Tax Registration Certificate) and deduct & pay tax on behalf of employees. |
Self-Employed Individuals | Professionals like doctors, lawyers, consultants, freelancers, traders, shop owners, etc., must register under PTEC (Professional Tax Enrolment Certificate) and pay their own professional tax. |
Company Directors / Partners in LLPs or Firms | Required to pay professional tax under PTEC, even if the entity has no employees. |
Sole Proprietors | Must register under PTEC to pay professional tax for themselves. If they hire employees, they also need PTRC. |
Professional Tax is a state-level tax levied on individuals engaged in professions, trades, and employment. It is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.
PTEC (Professional Tax Enrolment Certificate): For individuals, professionals, business owners, directors, and partners to pay their own professional tax.
PTRC (Professional Tax Registration Certificate): For employers to deduct and deposit professional tax on behalf of their employees.
Any person or entity engaged in business, trade, or profession in Maharashtra—such as self-employed professionals, sole proprietors, directors, or partners—must obtain a PTEC to pay their own professional tax.
Every employer who has salaried employees in Maharashtra is required to obtain a PTRC and deduct professional tax from employee salaries as per prescribed slab rates.
The maximum professional tax payable under PTEC is ₹2,500 per year, which must be paid in advance by 30th June of the financial year.
No. A director or partner is required to pay professional tax under PTEC only once, regardless of the number of companies or firms they are associated with.