Professional Tax Registration and Payment Rules in Mumbai
Introduction
Professional Tax in Mumbai is a state-level tax levied by the Maharashtra Government on salaried employees, professionals, and business entities. It is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.
Whether you are a self-employed individual or an employer running a business, understanding PTEC (Enrollment Certificate) and PTRC (Registration Certificate) is crucial to stay compliant and avoid penalties.
Types of Professional Tax Certificates
1. PTEC (Professional Tax Enrollment Certificate)
Applicable to:
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Proprietors
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Freelancers
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Business owners
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Partners
-
Directors
Note: Even if there are no employees, individuals with business income must register under PTEC.
2. PTRC (Professional Tax Registration Certificate)
Applicable to:
-
Businesses that employ people earning a salary above ₹7,500/month (males) or ₹25,000/month (females – updated exemption limit)
-
The employer is responsible for deducting and paying professional tax on behalf of employees.
Professional Tax Slabs in Mumbai (As of Latest Update)
| Monthly Salary Range | Tax Payable (Male) | Tax Payable (Female) |
|---|---|---|
| Up to ₹7,500 | Nil | Nil |
| ₹7,501 – ₹10,000 | ₹175 | Nil (If salary < ₹25,000) |
| Above ₹10,000 | ₹200 (₹300 in Feb) | ₹200 (₹300 in Feb) if not exempt |
Who is Exempt from Professional Tax?
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Women earning less than ₹25,000/month
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Senior citizens (age 65 and above)
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Individuals with ≥40% disability
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Parents of mentally disabled children
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Badli textile workers
Registration Process in Mumbai
Professional Tax registration in Mumbai is done online through the Maharashtra Government GST portal (www.mahagst.gov.in).
Documents Required:
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PAN and Aadhaar card
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Passport-size photo of stakeholder
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Business address proof (electricity bill/rent agreement)
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Cancelled cheque / bank statement
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COI, MOA, AOA (for companies)
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Specimen signatures
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Employee salary details (for PTRC)
Timeline:
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Register within 30 days of becoming liable.
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PTEC is generally a one-time registration.
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PTRC is required if employees cross the salary threshold.
Due Dates for Payment
PTEC (For Business Owners/Self-employed):
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First Year: Within 30 days of registration
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Following Years: On or before 30th June every financial year
PTRC (For Employers):
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Monthly Payment: If total tax liability is more than ₹50,000/year
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Annual Payment: If tax liability is up to ₹50,000/year
Return Filing:
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Monthly: By end of next month
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Annual: By 31st March (for those with less than ₹50,000 liability)
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Late Fees and Penalties
| Type | Penalty / Interest |
|---|---|
| Late Registration | ₹5 per day (PTRC), ₹2 per day (PTEC) |
| Late Payment – PTEC | 1.25% interest per month |
| Late Payment – PTRC | 2% interest per month + 10% penalty |
| Late Return Filing | ₹200 (up to 30 days), ₹1,000 (beyond) |
Composition Scheme for PTEC
Business owners can opt for a lump sum payment for 5 years and avoid yearly hassle.
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Pay ₹12,500 (₹2,500 × 5 years) before 30th June
-
Saves time, reduces risk of default
Online Payment Options
Payments can be made via:
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Mahagst portal: www.mahagst.gov.in
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GRAS portal: https://gras.mahakosh.gov.in
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Choose the correct jurisdiction (e.g., Mazgaon for Mumbai)
Final Thoughts
Professional Tax compliance in Mumbai is mandatory for both individuals and companies operating within Maharashtra. Timely registration, accurate tax deduction, and on-time payment are essential to avoid penalties and maintain business credibility.
Need help with your PTEC or PTRC registration? Our team can handle end-to-end compliance for you.
Still Confused?
📞 Contact us at +91 88029 12345 or ✉️ Email: connect@taxaj.com to get expert assistance on Professional Tax and other business registrations in Mumbai.
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