By S&S Co. Advocates & Solicitors · Published 20 September 2026 · Informational content, not legal advice — see our disclaimer
A State-Level Tax, Not Levied Everywhere
Professional tax is a state-level tax under Article 276 of the Constitution, levied by roughly 19-20 states and Union Territories — Maharashtra, Karnataka, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu and Gujarat among them. Delhi, Uttar Pradesh, Haryana, Punjab, Rajasthan and Uttarakhand do not levy it, and Odisha abolished it effective 1 April 2026 — so businesses should check whether the tax even applies in their specific state before assuming a compliance obligation exists.
PTEC vs. PTRC
Two distinct registrations exist in states like Maharashtra: PTEC, the Professional Tax Enrolment Certificate, for self-employed persons, proprietors, partners and directors paying tax on their own income; and PTRC, the Professional Tax Registration Certificate, for employers who deduct and deposit professional tax from employees' salaries. A business owner who is also an employer may need both — PTEC for their own liability, PTRC for their employees'.
The Constitutional Cap
Article 276(2) of the Constitution caps professional tax at Rs. 2,500 per person per financial year — a ceiling no state can exceed regardless of income level, making the maximum liability a known, fixed figure even as rates and slabs otherwise vary by state.
Registration Timing and Due Dates
Registration must generally be obtained within 30 days of becoming liable — starting a business, hiring the first employee, or a professional commencing practice. Due dates are state-specific and change by notification; for example, a February 2026 amendment shifted several Maharashtra PTRC and PTEC due dates to the 15th of the relevant month, with PTEC in Maharashtra typically an annual payment due around 15 June.
Penalties for Non-Compliance
Non-compliance draws state-specific penalties — Maharashtra, for instance, levies a flat late-filing penalty plus roughly 1.25% monthly interest and up to a 10% penalty on unpaid tax. Because this is inherently a state-by-state regime, businesses operating in multiple states should confirm the current due dates, slabs and forms for each state individually rather than assuming uniformity.
Frequently Asked Questions
Do all states in India levy professional tax?
No. Roughly 19-20 states and UTs levy it (including Maharashtra, Karnataka, West Bengal and Tamil Nadu), but Delhi, UP, Haryana, Punjab, Rajasthan and Uttarakhand do not, and Odisha abolished it effective 1 April 2026.
What is the difference between PTEC and PTRC?
PTEC (Professional Tax Enrolment Certificate) covers self-employed persons, proprietors, partners and directors paying tax on their own income. PTRC (Professional Tax Registration Certificate) covers employers who deduct and deposit professional tax from employees' salaries.
Is there a maximum professional tax liability?
Yes. Article 276(2) of the Constitution caps professional tax at Rs. 2,500 per person per financial year, regardless of the person's income level.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Constitution of India, Article 276.
- Applicable state Professional Tax Act (e.g., Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975), current as of the date of registration.