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Professional Tax Registration for Employers in India | NDSA
Professional tax · Employers

A small state tax, deducted every month.

Many states charge professional tax on salaries and on businesses. Employers register, deduct it from pay and file returns. The yearly maximum is ₹2,500 per person. Here’s a Maharashtra example.

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₹2,500Yearly cap
StateRules vary
MonthlyDeduction
Maharashtra exampleSalary deduction

Maharashtra slabs for men; women earning up to ₹25,000 a month pay nil. Other states differ.

01 · Two registrations

For employees and for the business.

Employer registration

  • To deduct from salaries
  • Monthly or yearly returns
  • By state rules
  • In Maharashtra: PTRC

Business enrolment

  • Tax on the business itself
  • Paid yearly
  • By state rules
  • In Maharashtra: PTEC

Directors of companies are often liable too.

02 · Process

Registering and filing.

  1. 1
    Check

    State and staff

    Where employees work.

  2. 2
    Register

    Online

    Employer and business.

  3. 3
    Deduct

    From salaries

    By state slabs.

  4. 4
    Pay

    To the state

    By due dates.

  5. 5
    File

    Returns

    Monthly or yearly.

03 · Common myths

Professional tax myths.

Related services

More business registrations.

Related pages.

Getting started

Startups

Business registrations

Trade and finance

Wherever you live in Europe

Employers from across Europe.

We register Indian entities of groups in every EU country, Switzerland and Norway.

BerlinMunichFrankfurtHamburgStuttgartAmsterdamRotterdamThe HagueEindhovenBrusselsAntwerpLuxembourgParisLyonToulouseDublinCorkStockholmGothenburgCopenhagenHelsinkiOsloZurichGenevaViennaMilanRomeMadridBarcelonaLisbonPortoWarsawKrakówPragueBudapestBucharestTallinnVilniusAthensValletta
04 · FAQs

Professional tax questions answered.

What is professional tax?
A state tax on employment and business.
Which states charge it?
Many, but not all.
What is the maximum?
₹2,500 a year per person.
Who deducts it?
The employer.
Does the company pay too?
Often, through enrolment.
Are directors liable?
Often.
Is it deductible for income tax?
Yes, for employees.
How often are returns filed?
Monthly or yearly, by state.
Are expats covered?
Usually, for salary in India.
Can you register us?
Yes.

Hiring in India? Register for professional tax.

Tell us your locations and staff. We’ll register and file.

Register for professional tax +91 9819 000 511

General guidance based on the rules as they stand, including the Income-tax Act, 2025 and the Income-tax Rules, 2026. It is not legal, tax or financial advice for your situation; please contact us before acting on it.