Professional Tax is a form of Tax, which the State Governments are collecting from professionally occupied personals and business entities. A person earning income from salary or professions such as Lawyers, Company Secretaries, Charted Accountants, etc. are liable to pay this tax. Any employers, professionals, traders, etc. have to register for Professional Tax. The Local Administrative Body (Panchayat, Municipality, Corporation, etc.) are handling the collection of Professional Tax.


The Professional Tax is deducted from the salary of employee, which is eligible for deduction from computation of Income Tax. The registration for Professional Tax should have to obtain from the Local Administrative Body by the Employer or Business Owner. As Professional Tax is a State based registration, the method of registration and rate of tax is different from state to state. Normally there are two types of registrations – PTEC and PTRC.PTRC stands for Professional Tax Registration Certificate, and PTEC stands for Professional Tax Enrollment Certificate. A business usually requires both to conduct business.
