Professional Tax in Mumbai Works Differently
Professional tax is a state tax, and Maharashtra's rules under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 are among the most detailed in India. Slabs differ for men and women, February has a higher deduction, directors are liable in their own right, and the payment frequency depends on how much tax you paid the previous year. Mistakes usually surface during due diligence, bank loans or a department notice.
PTRC and PTEC
- PTRC (Registration Certificate): needed by every employer in Mumbai paying salaries above the exemption limit. You deduct PT from employees and deposit it with the state.
- PTEC (Enrolment Certificate): needed by companies, LLPs, partnership firms, proprietors running a business, and professionals such as doctors, lawyers, CAs and consultants. They pay their own professional tax each year.
Salary Slabs in Maharashtra
| Monthly salary | Men | Women |
|---|---|---|
| Up to ₹7,500 | Nil | Nil |
| ₹7,501 to ₹10,000 | ₹175 a month | Nil |
| ₹10,001 to ₹25,000 | ₹200 a month (₹300 in February) | Nil |
| Above ₹25,000 | ₹200 a month (₹300 in February) | ₹200 a month (₹300 in February) |
The February adjustment brings each employee's annual total to the constitutional cap of ₹2,500.
Payment and Returns
- Annual payers: employers whose previous year's PT liability was below ₹50,000
- Monthly payers: employers whose liability was ₹50,000 or more
- PTEC: annual enrolment tax for the business and for each liable director
Late payment attracts interest and penalties, so we set up a calendar with your payroll and file on time each period.
Documents Required
- PAN and incorporation certificate, LLP agreement or partnership deed
- Address proof of the Mumbai office
- PAN and Aadhaar of directors or partners
- Employee count and salary details for PTRC
- Bank account details
New companies can apply for PTEC and PTRC with incorporation through AGILE-PRO-S. See company registration in Mumbai.
Serving Clients Across Mumbai
Fort, Nariman Point, Lower Parel, Worli, Bandra-Kurla Complex, Andheri, Powai, Goregaon, Malad, Vikhroli, Thane, Vashi and Belapur, all handled online.
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Registration and ongoing filing
- PTEC enrolment for the business
- PTRC registration as employer
- Slab-wise payroll deduction
- Payments and returns on time
- Catch-up of past defaults
Frequently Asked Questions
What is the difference between PTRC and PTEC in Maharashtra?
PTRC (Registration Certificate) is for employers, who deduct professional tax from employees' salaries and pay it to the state. PTEC (Enrolment Certificate) is for the business or professional itself, which pays its own professional tax once a year. Most Mumbai companies and firms with staff need both.
How much professional tax is deducted from salaries in Maharashtra?
For men, nothing up to ₹7,500 a month, ₹175 a month between ₹7,501 and ₹10,000, and ₹200 a month above ₹10,000, with ₹300 deducted in February so the year totals ₹2,500. For women, there is no deduction up to ₹25,000 a month and ₹200 a month (₹300 in February) above that.
When is professional tax paid in Maharashtra?
Employers whose annual PT liability in the previous year was below ₹50,000 pay and file once a year; those at or above ₹50,000 pay monthly. Businesses and professionals with a PTEC pay their annual enrolment tax, generally by 30 June.
Do company directors pay professional tax in Maharashtra?
Yes. Directors of companies are separately liable for professional tax in Maharashtra, in addition to the company's own enrolment. We check which directors need to be enrolled.
Who administers professional tax in Maharashtra?
The Maharashtra Goods and Services Tax Department. Registration, payments and returns are handled online on its portal.
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