Maharashtra Professional Tax Act 1975: Latest Rules, Tax Slabs & Employer Compliance

The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 governs Professional Tax (PT) in Maharashtra. It applies to specified salaried employees, professionals, traders and other persons covered under the Act.

For employers, Professional Tax is an important payroll compliance requirement because the employer may be required to deduct PT from employees’ salaries, deposit it with the Maharashtra Government and file the applicable returns.

In 2026, employers should pay particular attention to updated PTRC return-filing periodicity, payment and return timelines, and recent departmental instructions.

1.What is Professional Tax in Maharashtra?

Professional Tax is a state-level tax imposed on income earned from employment, professions, trades, callings and certain other activities.

In Maharashtra, the tax is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 and the related Professional Tax Rules.

The tax is administered by the Maharashtra Goods and Services Tax Department (MAHAGST). The department’s portal provides facilities for Professional Tax registration, payment and return filing.

2.Latest Professional Tax Update for 2026

One of the important compliance developments for 2026 is the availability of PTRC return-filing periodicity for FY 2026–27 on the MAHAGST portal.

The department has also published information concerning relaxation in registration and return filing under the Maharashtra Professional Tax framework. Employers should therefore check the latest periodicity and applicable filing requirements rather than relying on old schedules.

The MAHAGST portal also currently provides Professional Tax payment facilities, including payment options for PTRC and PTEC taxpayers.

3.Professional Tax Slabs in Maharashtra

For salaried employees, Professional Tax is generally deducted according to the applicable salary slab.

For the applicable ₹200-per-month category, the February deduction is generally ₹300, resulting in a maximum annual deduction of ₹2,500.

There are also specific provisions applicable to women employees, so employers should verify the employee’s category and the current Schedule I before processing payroll.

4.What is PTRC?

PTRC stands for Professional Tax Registration Certificate.

~An employer who is liable to deduct Professional Tax from employees generally needs PTRC registration. After registration, the employer is responsible for:

• Deducting applicable PT from employees
• Depositing the tax with the Government
• Filing applicable PTRC returns
• Maintaining payroll and deduction records
• Following the prescribed payment and return deadlines

The MAHAGST portal provides online PTRC return and payment facilities.

5.What is PTEC?

PTEC stands for Professional Tax Enrolment Certificate.

It is generally relevant to persons, businesses and professionals who are liable to pay Professional Tax on their own enrolment.

PTEC and PTRC are different:

• PTEC: Professional Tax liability of the enrolled person/business.
• PTRC: Employer’s responsibility for deducting Professional Tax from employees.

The MAHAGST portal provides separate PTEC payment facilities.

6.Professional Tax Compliance for Employers

Employers operating in Maharashtra should ensure that their payroll process correctly handles Professional Tax.

A basic compliance process is:

Employee salary calculation → PT eligibility check → PT deduction → PT payment → PTRC return filing → Record maintenance

The payroll team should also check whether an employee qualifies for any exemption or special treatment before making the deduction.

7.Professional Tax Return Filing in FY 2026–27

MAHAGST has specifically made PTRC return-filing periodicity for FY 2026–27 available through its Professional Tax system.

This is important because employers should follow the periodicity assigned/applicable to their PTRC instead of automatically applying an old monthly or annual filing assumption.

Employers should regularly check the MAHAGST portal for changes in filing schedules, departmental circulars, notifications and compliance instructions.

8.What Happens If Professional Tax Is Not Complied With?

Failure to correctly deduct, pay or report Professional Tax can result in interest, penalties or other consequences under the applicable provisions.

~Therefore, HR and payroll teams should reconcile:

• Employee salary
• PT deduction
• PT challan/payment
• PTRC return
• Employee-wise records

before completing the compliance cycle.

9.Professional Tax and Salary Processing

Professional Tax should be considered while calculating an employee’s monthly salary deductions.

For example, if an employee falls into the applicable ₹200 monthly PT category, the employer normally deducts the prescribed amount from salary. In February, the deduction can be ₹300, resulting in the annual maximum of ₹2,500.

Payroll software should therefore be configured correctly so that the February adjustment is not missed.

10.Important Checklist for HR & Payroll Teams

~Employers in Maharashtra can use the following checklist:

-Check whether the establishment requires PTRC registration.

-Verify employee-wise Professional Tax applicability.

-Apply the correct Maharashtra PT slab.

-Check applicable exemptions.

-Make the additional February deduction where applicable.

-Deposit Professional Tax within the prescribed timeline.

-Follow the applicable PTRC return periodicity for FY 2026–27.

-Reconcile PT deductions with challans and returns.

-Keep registration, payment and return records.

-Monitor MAHAGST notifications and circulars for further changes.