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Avoid Penalties... Register for Professional Tax Now!

SPSI will help you register your business for professional tax. Our professionals will handle the whole procedure for you.

How Does Professional Tax Registration Work For You?

A company operating in various states is required to register for professional tax in all the states in which it is present. SPSI helps you register for professional tax in 3 simple steps:

Step 1

Data Check
We do a thorough check of the files you send in

Step 2

Vendor Connect
We will appoint an affiliate to process your application.

Step 3

Receipt of Tax Number
The TIN will be issued within 15 days of the application.


Online Professional Tax Registration – an Overview

Professional tax is a tax that is imposed by state governments on all salaried individuals. Professional tax is applicable to all working professionals, such as chartered accountants, lawyers, and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as professional tax is ₹2,500 per annum.



Professional tax applicability: Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same.

Professional tax for self-employed: Any professional who obtains a monthly regular income will need to pay the professional tax. By the word professional, we mean people employed in specialized fields such as accountancy, media, etc.

Who is exempted

Who is exempted from paying professional tax?

The professional tax rules provide exemptions for a few individuals; the exemptions are different based on the state you belong to. The professional tax rules provide exemptions to the following individuals:

  • Parents of children suffering from mental or permanent disability
  • Members of the armed forces
  • Individuals with permanent physical disability
  • The age differs state wise
  • Badli workers engaged in the textile industry
  • Women engaged exclusively as an agent under the directorate of small savings or Mahila Pradhan Kshetriya Bachat Yojana
  • Guardians or parents of mentally challenged individuals.



Here are the reasons why one should never miss a professional tax payment

  • Judicial requirement: Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
  • Avoid paying penalties: Failure to professional tax registration results in huge penalties that keep on increasing over time.
  • Easy to comply: The professional tax regulations are so easy to follow. The registration procedures can be done quickly and the further proceedings are also much easier.
  • Deductions: Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
  • State government tax: The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond ₹2500 per annum.

Documents Required

Documents Required

  • Certificate of incorporation, including MOA and AOA/LLP agreement
  • PAN card of company/LLP attested by the company director
  • Proof of office location with NOC from the owner of the premises
  • Proof of company bank account with bank statement and a cancelled cheque
  • Passport size photograph, address and identity proof from all the directors
  • Board resolution/ statement of consent by the partners
  • Shop and establishment certificate
  • Salary register and attendance register.

Detailed Process

Online Professional Tax Registration – Detailed Process

  • Step 1: PAN card, address, and identity proof of all the directors/partners/proprietors of the company must be provided
  • Step 2: All the employee details must also be furnished
  • Step 3: The application form for professional tax must be filled by the employees
  • Step 4: Our experts will submit it to the concerned authorities
  • Step 5: The basic acknowledgement will be provided by us within 5 to 7 working days
  • Step 6: The registration hard copy will be issued within 10 days in all the major cities
  • Step 7: In other places, it might take up to 15 to 20 working days.


FAQs on Avoid Penalties… Register for Professional Tax Now!

Income tax is a direct tax collected by the central government from all taxpayers. It is charged on a certain percentage of their income. Whereas, professional tax is an indirect tax collected by the state government. It is charged based on a slab for people engaged in business, occupation, or employment.

Each Indian state prescribes its slab for professional tax. For example: In Maharashtra, if your monthly income is between ₹7,500 to ₹10,000, then the professional tax levied is ₹175. Similarly, for monthly incomes above ₹10,001, the tax levied is ₹200 for 11 months and ₹300 on the 12th month. Finally, when the monthly salary is less than ₹7500, there is no professional tax imposed.

Employers in some states are required to deduct and deposit taxes from employees whose pay exceeds the minimum slab limit. That entity must get a registration certificate as well as an enrollment certificate.

Once the payment has been made, download the payment acknowledgement receipt. The receipt indicates that the payment has been made successfully.

One may apply directly for a professional tax registration certificate through the official website of their state. However, it is recommended that you get professional help for the first time. Contact SPSI to get the certificate in no time.

The individuals who are residing in India can only become partners or members in a partnership firm. Foreign individuals who want to form their business in India can choose private limited companies.

Professional tax appears at the top of the salary slip as it is deducted even before calculating income tax. The employer deducts it from the salary of the employee and deposits it with the state government. Professional tax is calculated on the earned gross based on the tax levied by the statement government in the respective states.

The Glossary

Professional Tax Registration Glossary


Professional Tax


Professional Tax Enrollment Certificate


Professional Tax Registration Certificate

Direct Tax

Direct taxes are taxes imposed on income, capital gains and net worth. Gift tax, death duties and property tax are also considered direct taxes.

Double Taxation

Double taxation is juridical when the same person is taxed twice on the same income by more than one state. Double taxation is economic if more than one person is taxed on the same item.

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