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Professional Tax Registration

  • Mandatory state-level tax compliance for employers and professionals
  • Enables lawful deduction and payment of professional tax
  • Avoids penalties, interest, and prosecution
  • Builds credibility as a compliant employer
  • Required for smooth payroll and statutory audits
  • Required for operating establishments in applicable states.
  • Enables lawful deduction and payment of professional tax from salaries.
  • Enables lawful deduction and payment of professional tax from salaries.

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7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

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10 +

Awards Gained

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144 k +

Trusted Clients

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36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Introduction

Professional Tax Registration is a state-level statutory registration required under the
respective State Professional Tax Acts for employers, self-employed individuals,
professionals, and businesses earning income through employment, profession, trade,
or calling.
Professional Tax is levied by State Governments and is applicable in states where such
law is enforced. Employers are required to deduct professional tax from employee
salaries and deposit it with the state government, while self-employed professionals must
pay it directly. The tax amount is subject to a maximum limit prescribed by the
Constitution of India and varies from state to state.
Once applicable, Professional Tax Registration becomes mandatory, and failure to
register, deduct, or pay professional tax can result in penalties, interest, and legal action
by state authorities.

Legal Framework / Governing Authority

Professional Tax is governed by the respective State Professional Tax Acts and Rules
and administered by the State Commercial Tax Department / Municipal Corporation /
State Tax Authority, depending on the state.

Importance of the Registration

Professional Tax Registration ensures lawful salary deductions, proper tax payment to
state authorities, and compliance with labour and tax laws. It is often verified during
payroll audits, labour inspections, and statutory compliances.

Businesses Require This Registration

  • Employers with salaried employees
  • Proprietors, freelancers, and professionals
  • Partnership firms, companies, and LLPs
  • Shops, offices, factories, and establishments
  • Doctors, lawyers, chartered accountants, and consultants

Objective of Compliance

The objective is to enable state governments to collect revenue from professions and
employment while ensuring transparent deduction and payment of professional tax.

Documents

Documents
  • 1 PAN of proprietor
  • 2 Aadhaar of proprietor
  • 3 Address proof of business
  • 4 Bank account details
  • 5 Employee details (if applicable)
  • 1 PAN of partnership firm
  • 2 Partnership Deed
  • 3 Aadhaar of authorized partner
  • 4 Address proof of business
  • 1 Certificate of Incorporation
  • 2 PAN of company/LLP
  • 3 MOA & AOA / LLP Agreement
  • 4 Aadhaar of directors/partners
  • 5 Address proof of registered office
  • 6 Bank account details

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Eligibility

Applicability

Applicable in states where professional tax is levied
Applicable to employers and self-employed professionals
Applicable based on income or salary slabs
Applicable once prescribed thresholds are crossed

Eligibility

Applicant must earn income from profession or employment
Business or profession must be located in applicable state
Employer must have salaried employees (for employer registration)
PAN and bank account are mandatory

Validity

Professional Tax Registration is valid for a lifetime
No renewal is required once registered
Periodic payment and return filing are mandatory
Registration remains active unless cancelled

Penalty for Non-Compliance

Penalty for Non-Compliance

Penalty for delay in registration
Interest on delayed payment of professional tax
Late fees for non-filing of returns
Prosecution and recovery proceedings by state authorities

FAQs

Is Professional Tax applicable in all states of India?

No, Professional Tax is applicable only in states that have enacted Professional Tax laws.

Who is responsible for paying Professional Tax?
Is Professional Tax deductible under Income Tax?
Is Professional Tax applicable to proprietors?
What happens if Professional Tax is not paid?
Is Professional Tax Registration mandatory for all businesses?
Who is required to obtain Professional Tax Registration?
Is Professional Tax Registration applicable across India?
Does Professional Tax Registration require renewal?
What happens if Professional Tax is not paid on time?

Why Partner With ARK?

A seamless blend of technology and Chartered Accountant expertise to simplify your business registration.

Comprehensive Tax Services

From GST to income tax, we ensure timely and accurate filings with end-to-end support.

Financial Strategy

We help businesses plan, grow, and manage finances effectively through customized consulting.

ARK Advisor Expert
Startup & MSME Support

Right from business registration to ROC compliance, we assist MSMEs at every stage.

Experienced CA Team

Led by Chartered Accountants with deep domain expertise and industry-specific experience.

What Our Clients Say

Discover what our satisfied clients have to say about their experience working with us

Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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