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Professional Tax Registration

  • Light Bill / Rent Agreement: Light Bill in case of owned shop or business premises, for any other case Rent Agreement is required.
  • PAN Card of Individual.
  • Aadhar Card of Individual.
  • 2 Passport size photos of proprietor.
  • Signature on Blank Paper for record and verification.
  • Canceled cheque / Bank Statement.

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If you closely examine your payslip, you may notice a small deduction listed alongside HRA, conveyance, and basic salary components. This deduction, usually around ₹200, is called Professional Tax (PT).

 

Professional tax varies across different states in India, and in some states, there may be no deduction at all under this category.

 

What is Professional Tax?

Professional Tax (PT) is a tax levied by state governments on individuals earning income through salaries, wages, or professional practices such as:

  • Salaried employees
  • Lawyers
  • Teachers
  • Doctors
  • Chartered Accountants (CAs)
  • Other self-employed professionals

For salaried employees, professional tax is deducted by the employer from the salary/wages and deposited with the respective state government.

 

Professional Tax Registration & Returns

 

Mandatory Registration:

  • Businesses must obtain Professional Tax Registration within 30 days of hiring employees.
  • Self-employed professionals must register within 30 days of starting their practice.

 

Tax Deduction & Payment:

  • Employers must deduct professional tax from employee salaries/wages and submit it to the state government.

 

Separate Registration for Multiple Work Locations:

  • If a business has multiple workplaces, it must register separately under each jurisdiction where employees are based.

 

Exemptions from Professional Tax

The following individuals are exempt from paying professional tax:

  • Parents of children with permanent disability or mental disability.
  • Members of the Armed Forces, including auxiliary forces and reservists, serving in the state.
  • Badli workers in the textile industry.
  • Individuals with a permanent physical disability (including blindness).
  • Women exclusively working as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Small Savings Directors.
  • Parents or guardians of individuals suffering from mental disability.
  • Individuals above 65 years of age.

DOCUMENT REQUIRED

 

To apply for Professional Tax (PT) Registration, the following documents are required:

 

1. Business Premises Proof

  • Light Bill – If the business premises are owned.
  • Rent Agreement – If operating from a rented space.

 

2. Identity Proof 

  • PAN Card – Personal PAN for individuals; Company PAN for businesses.
  • Aadhaar Card – Of the proprietor or individual applicant.

 

3. Photographs & Signatures

  • Two passport-size photographs of the proprietor or business owner.
  • Signature on a blank paper – Required for record and verification purposes.

 

4. Banking Details

  • Cancelled Cheque or Bank Statement – For verification of business banking details.

Professional Tax registration and payment can be made at all zonal offices of the respective municipal authorities within Tamil Nadu via cheque or demand draft. The process has also been simplified through online registration.

 

Step-by-Step Process for Professional Tax Registration

 

Step 1: Visit the Online Portal

  • Go to the Chennai Corporation’s official website to access the Professional Tax Registration portal.

 

Step 2: Register Your Details

  • Provide essential details such as:
    → Mobile Number
    → Email ID

You will receive a unique username and password via SMS and email securely.

 

Step 3: Create and Submit the Application

  • Log in to the Citizen Portal using the provided credentials.
  • Create a Self-Assessment Application for Professional Tax Registration.
  • Fill in the necessary details and submit the application online.

 

Step 4: Upload the Required Documents

  • Submit the following documents for verification:

 

Memorandum of Articles (MOA) – Required for Limited Companies.

  • Proof of Office Location in Chennai – (Mandatory).
  • Certificate from the Commercial Tax Department.
  • PAN Card or Bank Account Details.
  • Employer and Employee Details (Mandatory for businesses with employees).

 

Step 5: Acknowledgement & Registration Number

  • Once the application is submitted, an acknowledgement slip will be generated.
  • The acknowledgement will contain the Professional Tax Registration Number (PTNAN).
  • The PTNAN must be quoted in all returns, correspondence, and payment challans.

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Frequently Asked Question

1. Who needs to register for Professional Tax?

  • Employers – Businesses must register for PT if they employ staff.
  • Self-Employed Professionals – Lawyers, doctors, CAs, and freelancers must register individually.
  • Companies, LLPs, and Partnership Firms – Must register and deduct PT from employees’ salaries.

 

Not Required For:

  • Agriculture-related businesses.
  • Employees earning below the state’s PT threshold.

2. Is Professional Tax mandatory in all states?

  • Yes, in most Indian states.
  • No, in states like Delhi, Haryana, and Uttar Pradesh, where PT is not applicable.
  • PT-Applicable States: Maharashtra, Karnataka, Tamil Nadu, West Bengal, Gujarat, etc.

3. How is Professional Tax calculated?

PT is state-specific and depends on monthly salary slabs.

State Monthly       Salary                      Slab Professional Tax
Maharashtra        ₹7,500 – ₹10,000    ₹175
Maharashtra        ₹10,000+                   ₹200 (₹300 in Feb)
Karnataka             ₹15,000+                   ₹200
West Bengal         ₹40,000+                   ₹200
Tamil Nadu          ₹12,500+                    ₹208

4. How often should Professional Tax be paid?

For Employers:

  • Monthly if employees exceed a certain number.
  • Annually for small businesses.

 

For Self-Employed Individuals:

  • Annually before the due date set by the state government.

5. What are the penalties for late Professional Tax payment?

  • Late Payment Penalty – 1% to 2% per month.
  • Non-Compliance Fine – ₹500 to ₹5,000.
  • Legal Action – In severe cases of non-payment

6. Can I get a Professional Tax exemption?

Exemptions are available for:

  • Senior Citizens (above 60 years).
  • Parents of disabled children.
  • Armed Forces personnel.
  • Employees with salaries below the threshold.