Maharashtra Professional Tax Act, 1975 (2026): Complete Employer Compliance Guide

1.Introduction

The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (commonly known as the Maharashtra Professional Tax Act) governs the levy and collection of Professional Tax in Maharashtra. The tax is administered by the Maharashtra Goods and Services Tax Department (MGSTD) and applies to salaried employees, employers, businesses, companies, LLPs, firms, professionals, and other specified persons. The latest Professional Tax rate schedules continue to be published by the Maharashtra Government for FY 2026-27.

~What is Professional Tax?

Professional Tax (PT) is a state tax imposed on persons engaged in professions, trades, callings, and employments. Employers are responsible for deducting PT from eligible employees’ salaries and depositing it with the Government, while businesses and professionals may also have their own PT liability through enrolment.

2.Governing Law

Professional Tax in Maharashtra is governed by:

• The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
• Maharashtra Professional Tax Rules
• Notifications and Circulars issued by the Maharashtra GST Department

The Constitution of India (Article 276) limits Professional Tax to a maximum of ₹2,500 per person per financial year.

3.Who is Liable to Pay Professional Tax?

The Act applies to:-

• Salaried employees
• Employers
• Proprietorship firms
• Partnership firms
• LLPs
• Private Limited Companies
• Public Limited Companies
• Directors
• Partners
• Chartered Accountants
• Doctors
• Architects
• Lawyers
• Consultants
• Freelancers
• Contractors
• Other notified professionals

4.PTRC and PTEC – What’s the Difference?

1. Professional Tax Registration Certificate (PTRC)

PTRC is mandatory for employers who deduct Professional Tax from employees’ salaries.

Employer responsibilities include:

• Register under PTRC
• Deduct PT every month
• Deposit tax
• File PT returns

2. Professional Tax Enrolment Certificate (PTEC)

PTEC applies to the employer, business entity, company, LLP, proprietor, partners, directors, and certain professionals for their own Professional Tax liability.

Many businesses in Maharashtra require both PTRC and PTEC registrations.

5.Maharashtra Professional Tax Slabs (FY 2026–27)

Maximum Professional Tax: ₹2,500 per financial year.

6.Employer Compliance Process

Every employer must:

1. Obtain PTRC registration.
2. Register within the prescribed time after becoming liable.
3. Deduct PT from employees’ salaries.
4. Deposit PT before the due date.
5. File monthly or annual returns, as applicable.

1. Maintain payroll records, challans, and returns.

7.PTEC Compliance

Businesses and specified professionals must:

• Obtain PTEC.
• Pay the prescribed annual Professional Tax (currently ₹2,500 where applicable).
• Maintain proof of payment.

8.Return Filing

Depending on the employer’s Professional Tax liability, returns may be:

• Monthly, or
• Annual

Employers with higher annual PT liability generally file monthly, while smaller employers may be eligible for annual filing, subject to state rules.

9.Latest Maharashtra Professional Tax Updates (2026)

1. Updated Rate Schedule

The Maharashtra GST Department has published the latest Professional Tax rate schedules for FY 2026–27. Employers should ensure payroll systems reflect the current rates.

2. Revised Compliance Timelines

The Maharashtra Government issued notifications revising certain Professional Tax compliance due dates in 2026. Employers should verify the applicable due dates for payment and return filing to avoid penalties.

3. Online Compliance

Professional Tax registration, payment, and return filing continue to be available through the Maharashtra GST Department’s online portal.

10.Penalties for Non-Compliance

Failure to comply with the Act may result in:

• Penalty for late registration
• Interest on delayed payment
• Late filing penalties
• Recovery proceedings for unpaid tax

The exact amount depends on the applicable provisions of the Act and Rules.

11.Best Practices for Employers

• Obtain PTRC and PTEC, if applicable.
• Configure payroll software with current PT slabs.
• Deduct PT accurately each month.
• Deposit PT before the due date.
• File returns on time.
• Preserve challans and payroll records.
• Monitor notifications issued by the Maharashtra GST Department.