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Maharashtra professional tax: Applicability, slab, online payment
In India, professional tax plays a crucial role in the state-level taxation system. Maharashtra, one of the country's most populous states, imposes this tax on individuals within the state who earn a regular income from their professions, trades, or jobs. The main purpose of this tax is to generate revenue for the state, which can then be used for infrastructure development and public welfare initiatives. Maharashtra's professional tax system is governed by the Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975.
This article aims to provide a comprehensive overview of the applicability, regulations, tax deduction cycle, and payment options related to professional tax in Maharashtra and helps you keep your business compliant with the act.
Professional tax rules in Maharashtra
As per the Maharashtra professional tax rules, individuals engaged in any profession, trade, or employment within the state are liable to pay professional tax. This includes salaried employees, self-employed individuals, corporate bodies, and others. The tax amount is calculated based on the inidvidual's earned income and their applicable slab rates, with a maximum annual limit of ₹ 2,500.
Employers in the state have the additional responsibility of calculating and deducting professional tax from their employees' salaries before processing them, and remitting it to the government on their behalf.
Applicability of professional tax in Maharashtra
The following individuals and entities fall are liable to pay professional tax in Maharashtra.
- Employees: All salaried employees working in the private sector or with the central government, state government, or with the railways department.
- Self-employed individuals: Freelancers and others who are engaged in any type of profession, trade, or calling within the state, except those who work on a casual basis.
- Entities: Hindu Undivided Families, clubs, or associations, involved in any type of employment and earn an income.
- Companies and co-operative societies.
- Employer: Manager or the head of an office, who is responsible for the disbursement of salaries to the employees, must deduct correct amounts of professional tax from their employees' salaries and deposit it to the state government.
Individuals exempted from professional tax
The following individuals do not have to pay professional tax in Maharashtra.
- Members of the armed forces- Army, Navy, and Air Force.
- Badli workers in the textile industry. (Those who are appointed as a replacement for a permanent worker on leave.)
- Any person with physical or mental disability, including blindness.
- Parents or guardians of children with physical or mental disability.
- Women working as agents under the Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings.
- Individuals who are aged 65 years and above.
Recent amendment: Starting from April 1st, 2023, women earning up to ₹ 25,000 per month are exempted from professional tax in Maharashtra.
Maharashtra professional tax slab rates
For salaried employees
| Monthly gross salary | Monthly tax amount |
| In the case of men, who earn: | |
| Up to ₹ 7,500 | Nil |
| From ₹ 7,501 to ₹ 10,000 | ₹ 175 |
| Above ₹ 10,000 | ₹ 200 and ₹ 300* |
| In the case of women, who earn: | |
| Up to ₹ 25,000 | Nil |
| Above ₹ 25,000 | ₹ 200 and ₹ 300** |
*For male employees with a monthly income of ₹ 10,000 and above, a tax of ₹ 200 should be deducted for all months except February, and ₹ 300 should be deducted in February.
**For female employees with a monthly income of ₹ 25,000 and above, a tax of ₹ 200 should be deducted for all months except February, and ₹ 300 should be deducted in the month of February.
For self-employed individuals and business owners
The deduction cycle for certain professions in Chhattisgarh occurs annually. To find the slab rates applicable to your business, refer to the table provided below.
| Tax assess category | Yearly tax amount |
| Legal practitioners, medical practitioners, professional consultants, chartered accountants, insurance agents, contractors, and driving school instructors | ₹ 2,500 |
| Employers of establishments as defined in the Bombay Shops and Establishments Act, 1948: | |
| Nil |
| ₹ 1,000 |
| ₹ 2,500 |
| Owners of factories as defined in the Factories Act, 1948 | ₹ 2,500 |
| Directors of companies registered under the Companies Act, 1956 | ₹ 2,500 |
| ₹ 2,500 |
| Limited liability partnerships registered under the Limited Liability Partnership Act, 2008 | ₹ 2,500 |
| Dealers registered under the Maharashtra Value Added Tax Act, 2002 or the Central Sales Tax Act, 1956 | ₹ 2,500 |
| The following co-operative societies registered under the Maharashtra Co-operative Societies Act, 1960: | |
| ₹ 500 |
| ₹ 750 |
| ₹ 2,500 |
| The following individuals working in the motion picture industry, theatre, orchestra, and televisions: | |
| ₹ 2,500 |
| ₹ 1,000 |
| Individuals running or owning a conference hall/marriage hall/petrol pump stations or garages of automobiles | ₹ 2,500 |
For additional information, refer to the tax rate schedule released by the government of Maharashtra.
Registering businesses for professional tax in Maharashtra
All individuals in Maharashtra (excluding salaried employees) who are responsible for paying professional tax must apply for a registration or enrolment certificate within 30 days of becoming liable to pay the tax.
- If you are an employer and employ at least one person with a salary exceeding the government's threshold limit, you must obtain the Profession Tax Registration Certificate (PTRC).
- If you are self-employed or run a business without employing anyone, you should obtain the Profession Tax Enrolment Certificate (PTEC) as an individual or as an entity engaged in a profession.
To facilitate a smooth registration process, both certificates can be applied online via the official website of the Maharashtra government. Before proceeding with the application, it is important to gather the following documents for submission.
Documents required for registering
- Address proof of the applicant, such as Aadhar card, passport, or driving license.
- Latest passport size photograph of the applicant.
- PAN of the proprietor/ company.
- Partnership deed, or certificate of incorporation, if applicable.
- Address proof of the place of business, such as a rental/lease agreement or latest electricity bill.
- Cancelled cheque of the current bank account in the name of the business.
For more information on the documents required, take a look at this notification released by the state government.
Professional tax online registration process
In order to register online, the initial step is to create a temporary profile on the official portal. Once it's done, you can use the temporary profile to apply online for PTRC and PTEC. Follow the steps provided below to create the temporary profile.
Temporary profile creation
- Go to the official website for commercial taxes run by the government of Maharashtra.
- Navigate to the Other Acts Registration button and click New Dealer Registration from the dropdown.
- On the new page, click New Registration Under Various Acts button, the instructions to register online will appear. Read the instructions thoroughly and click Next from the bottom of the page to proceed.
- The type of applicant page will display. Select the New Dealer radio button and proceed.
Enter your PAN and captcha on the following page and click Next. Your PAN will be validated and a temporary profile creation page will open.
Applying for PTRC and PTEC online
- Go to the official website once again.
- Click the Log in for e-services button and enter your username and password to log in to your account.
- Once logged in, you will see the Act Selection page. Select either PTRC or PTEC from the available options and click Proceed.
- The e-application forms (Form1 for PTRC andForm 2 for PTEC) will open. Fill in the form with the necessary details and upload the required documents in their respective fields.
- Verify the details you have entered and click Submit.
- After successful submission of the form, you will receive an acknowledgment message displaying the Application Reference Number.Make a note of this number for future reference.
The assessing authority will review your application and send the Tax Identification Number (TIN) to your registered email address and mobile number.
For additional information, refer to the below documents:
Maharashtra professional tax payment process
After registering your business with the professional tax, you need to calculate the amount of tax that you and your employees owe, and remit them promptly to the state government. All businesses with the PTRC registration must only make the payment online through the www.mahagst.gov.in website. For individuals with PTEC registration, the payment can be made online or offline.
Online professional tax payment process
- Visit the official portal and navigate to the e-payments section on the homepage.
- Click the e-Payment Returns option. You will be taken to the ePayment page.
- Enter your Tax Identification Number, captcha, and click Next.
- On the subsequent page, select the tax you are paying, which is professional tax, and the period for which you are making the payment.
- Enter the total tax amount that you and your employees owe, then click Proceed.
- Choose your preferred payment gateway and click Make Payment to initiate the payment process.
- On the payment page, enter your bank credentials and the OTP sent to your mobile number to complete the payment process.
- After successfully paying the tax, a receipt will be automatically generated. Download the receipt for future reference.
Last date to pay professional tax
The due date to pay professional tax in Maharashtra depends on the type of registration certificate that you hold.
For employers with the Profession Tax Registration Certificate (PTRC), the last date is as follows:
| Tax liability during the previous year | Payment cycle | Last date to make professional tax payments |
| Tax liability is less than ₹ 50,000 | Yearly | 31st March of that financial year |
| Tax liability is ₹ 50,000, or above | Monthly | Last date of the month in which professional tax was deducted |
For individuals with the Profession Tax Enrolment Certificate (PTEC), the deduction cycle and last date is as follows:
| Date of enrolment | Last date to make professional tax payments |
| Individuals enrolled before the start of a year or by 31st May of a year | 30th June of that year |
| Individuals who are enrolled after the 31st May of a year | Within one month of the date of enrolment |
| Enrolled individuals whose rate of tax is revised | Within one month of the date of such revision |
Late payment penalty
If an enrolled person or registered employer fails to make payment of the tax amount within the specified time, the assessing authority has the right to impose a penalty. The penalty imposed in such cases is equal to 50% of the tax amount due.
Failure to comply with the provisions of the act can also incur penalties. Any person or employer found guilty of non-compliance can be fined up to ₹ 5,000. If the offense continues, an additional fine of up to ₹ 50 per day may be imposed for the duration of the offense.
Compliance forms for professional tax in Maharashtra
| Form | Description |
| PT Information Form | Profession Tax Information Form for Maharashtra Profession Tax Act, 1975 |
| Form III (B) | Profession Tax Registration Certificate (PTRC) e-Return Template for the period 01/04/2023 onward |
References