Maharashtra Professional Tax Guide – PTEC & PTRC Reference (with latest Update)

Maharashtra Professional Tax requires two different registrations depending on the nature of tax liability: PTEC (Professional Tax Enrolment Certificate) for paying one’s own professional tax and PTRC (Professional Tax Registration Certificate) for employers deducting and depositing professional tax from employee salaries. PTEC is typically required for companies, LLPs, directors, partners, self-employed professionals, and proprietors, with a flat annual payment of ₹2,500 and no return filing. PTRC applies when an employer pays salaries exceeding the prescribed threshold to employees, requiring deduction of professional tax as per salary slabs and filing of monthly or annual returns. If there are no employees, only PTEC is required and PTRC registration is unnecessary. Directors and partners are liable for PTEC personally regardless of salary, and a single certificate suffices even if they hold multiple directorships or partnerships. Due dates have been revised following the February 2026 amendment, with PTEC payable annually and PTRC returns generally due on the 15th of the following period.

Also Read: Maharashtra PT -Returns & Tax Payment by employers- Limit increased and Maharashtra Advances Profession Tax Due Dates to 15th

1. PTEC vs PTRC — Core Distinction

Maharashtra Professional Tax requires two distinct registrations depending on whether you are paying your own PT liability or deducting and depositing tax on behalf of employees.

–

2. Who Needs PTEC — Schedule I Entries

GST-registered persons are generally required to enrol for PTEC, except Partnership Firms and HUFs as entities (though their individual partners / co-parceners are liable personally).

Key Rules

• A director or partner pays PTEC only ONCE, regardless of how many companies or firms they are associated with — one certificate per person.
• Entry 5 (directors) has NO salary or remuneration condition. Directorship itself is a ‘calling.’ Zero-salary directors are fully liable.
• If a person falls under multiple Schedule I entries, the highest rate applies. One certificate suffices.
• Liability starts from the date of incorporation (for companies / LLPs) — not from when business activity or salary begins.

3. Who Needs PTRC

Any employer paying monthly salary above ₹7,500 to even one employee must register for PTRC.

• Register within 30 days of first employment (or of becoming liable to deduct).
• Deduct PT from employee salary per slabs (see Section 4) and deposit with the department.
• File return monthly or annually depending on total PT liability.
• If no employees → PTRC not required. Do not register. Only maintain PTEC.
• If all employees leave later → PTRC compliance can be stopped (see Section 10 — PTRC Surrender).

4. PT Slabs for Employees (PTRC Deduction)

Male Employees

Female Employees (w.e.f. 01/04/2023 — Budget 2023–24 Amendment)

–

5. PTRC Filing Frequency & Due Dates

The February 2026 notification (Rule 11(3) amendment) replaced all ‘last day of month / 31st March / 30th June’ due dates with the 15th day equivalent. This applies to both PTRC and PTEC.

–

6. PTEC Payment Due Dates

PTEC requires payment only — no return filing. The amount is ₹2,500 per certificate per year.

–

PTEC Due Date — From Year 2 Onwards

The enrolled before / after 15th May logic applies only in the year of first enrolment. From the second year onwards, the due date is fixed regardless of when the original enrolment was done.

Example: Enrolled April 2025 → First year pay by 15th June 2025. Year 2 onwards: pay by 15th June every year.

7. Startup / Founder Scenarios

These are the most common compliance scenarios for early-stage companies where founders have not yet drawn salaries and there are no full-time employees.

Private Limited Company — No Employees, No Salary to Directors

–

LLP — No Employees, No Salary to Partners

Partnership Firm — No Employees

When Salary Starts Later

When founders start drawing salary or the company hires its first employee:

• PTEC certificates for entity / directors / partners remain — continue paying ₹2,500 each annually.
• Register for PTRC within 30 days of first salary payment.
• Deduct PT from salary per the slabs in Section 4.
• File PTRC returns monthly (first year always) or annually based on total liability.

Under Entry 5 of Schedule I to the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, Professional Tax is levied on the calling of being a director — it is a personal, status-based levy on the individual, not on each directorship. Therefore, a director holding positions in multiple companies is required to obtain only one PTEC and pay ₹2,500 per year, regardless of the number of companies. Multiple appointments do not multiply the liability.

8. Registration Process

Portal: mahagst.gov.in → e-Services → VAT & Allied Acts → New Registration. Registration is free of cost.

Step-by-Step

1. Create a Temporary Profile using PAN + mobile + email. Valid for 90 days.

2. Login → Registration → New Registration.

3. Select PTEC and/or PTRC under PT Act, 1975.

4. Fill Form I (PTRC) / Form II (PTEC) — include constitution, address, employee list for PTRC.

5. Upload required documents (auto-approval in most cases within 1 day).

6. Download PTEC / PTRC certificate with TIN.

Documents Required

–

9. Payment Process

Method 1 — Via mahagst.gov.in

1. Login → e-Payments → e-Payment Returns.

2. Enter TIN (11-digit for PTEC, 12-digit for PTRC) + captcha.

3. Select PTEC Act or PTRC Act.

4. Enter FY, period, amount.

5. Proceed → payment gateway (net banking / cards).

6. Download auto-generated receipt.

Method 2 — Via GRAS (gras.mahagov.in)

1. Select ‘Professional Tax’ as tax type.

2. Enter TIN → Submit.

3. Enter employer name, location, mobile, amount.

4. Pay → download challan.

10. PTRC Surrender — When All Employees Leave

If all employees resign and no salary is being paid (including zero salary to directors), PTRC compliance can be stopped. This section details the correct process.

Step-by-Step Surrender Process

1. Stop future PTRC filings. Unlike GST, there are no mandatory NIL returns indefinitely once zero employees are confirmed.

2. File one final NIL return (strongly recommended). Login → Returns → PTRC → Select period → File with zero figures. This creates a clean record that liability ceased and protects against future notices.

3. Apply to surrender / cancel PTRC by writing a formal letter to the Professional Tax Officer (MGST Dept.). The letter must state: PTRC number, reason (‘All employees have left; no salaried employees remain; no PT deductions required’), and request for surrender/cancellation.

4. Attach supporting documents: employee resignation letters / PF exit proofs, salary register showing zero from the relevant date, copy of PTRC certificate.

5. Submit physically at your local PT office. As of 2026, there is no direct online surrender button on the portal. Department typically cancels within 30–60 days after verification. No fee.

6. Continue PTEC unchanged. Pay ₹2,500 per certificate annually (entity + each director / partner).

8. If salary restarts later, register for PTRC afresh within 30 days of first salary payment.

11. Penalties & Interest

Recent Waivers & Refunds

• Late fee exemptions for October / November 2025 returns — Trade Circulars 17T and 19T of 2025.
• Refund facility available from February 2026 onwards.
• Always check mahagst.gov.in → Notifications for current waiver circulars before paying late fees.

12. Exemptions from Professional Tax

13. Entity Quick Reference

14. Common Mistakes to Avoid

Mistake 1 — Director / partner registering PTEC multiple times

One PTEC per person regardless of the number of entities they are associated with. A director of five companies files one PTEC, not five.

Mistake 2 — Assuming zero-salary directors are exempt

Entry 5 has no salary condition. Liability exists from Day 1 of directorship regardless of whether remuneration is drawn.

Mistake 3 — Thinking PTEC requires return filing

PTEC requires only an annual payment. There is no return to file.

Mistake 4 — Filing annual PTRC in the first year of registration

The first year of fresh PTRC registration always requires monthly returns regardless of total PT liability.

Mistake 5 — Using old due dates

Post-Feb 2026: PTEC by 15th June, PTRC monthly by 15th of following month, PTRC annual by 15th March. The old 30th June / 31st March / end-of-month dates are superseded.

Mistake 6 — Treating all women employees as exempt

Only women earning up to ₹25,000 gross per month are exempt (from April 2023). Women earning above ₹25,000 are taxable at ₹200/month (₹300 in February).

Mistake 7 — Treating Partnership Firm as PTEC-liable

The firm as an entity is exempt. Only the individual partners have PTEC liability under Entry 19.

Mistake 8 — Continuing PTRC after all employees leave

PTRC can be stopped. File a final NIL return and submit a surrender letter to the local PT office. Do not continue filing indefinitely.

Mistake 9 — Not budgeting PT from Day 1 for startups

A Pvt Ltd or LLP with 2 founders owes a minimum ₹7,500/year (3 × ₹2,500) from the date of incorporation. Budget accordingly.

Under Entry 5 of Schedule I to the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, Professional Tax is levied on the calling of being a director — it is a personal, status-based levy on the individual, not on each directorship. Therefore, a director holding positions in multiple companies is required to obtain only one PTEC and pay ₹2,500 per year, regardless of the number of companies. Multiple appointments do not multiply the liability.

15. Key Legislative References

*******

About the Author: Shiva Agarwal is a CA Finalist and Associate Member – State Tax Advisory at Snigdha & Associates, a firm of Chartered Accountants providing advisory and compliance services in company law, taxation, audit, and business structuring. Email: hi@snigdha360.com