Maharashtra Professional Tax (PT), simplified
Slabs, PTRC and PTEC registration, monthly and half-yearly due dates, penalties, and the small February surprise that catches first-time payroll managers off guard.
The slabs below reflect the most recent Maharashtra Professional Tax notification at the time of writing. PT slabs can be revised by the Maharashtra Finance Department. Always confirm the current rates from the Maharashtra Profession Tax Department before configuring payroll.
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What is Professional Tax
Professional Tax is a state-level tax levied on income from salary or profession. In Maharashtra, the tax is governed by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.
Despite the name, it has nothing to do with central income tax. The PT is collected by the state government (Maharashtra) and is deducted by the employer from the employee's monthly salary, then deposited with the state.
Who has to pay it
Two parties have PT obligations in Maharashtra:
- Employees earning salary or wages above the threshold (currently ₹ 7,500/month). The employer deducts and deposits on their behalf.
- Employers themselves (business entities like companies, LLPs, partnerships, proprietorships) registered in Maharashtra also pay PT annually under PTEC. This is a separate, smaller obligation.
Current Maharashtra PT slabs
The PT deduction is monthly, based on the employee's gross monthly salary. The current Maharashtra slabs are:
| Monthly gross salary | PT per month | Annual PT |
|---|---|---|
| Up to ₹ 7,500 | NIL | NIL |
| ₹ 7,501 to ₹ 10,000 | ₹ 175 | ₹ 2,100 |
| ₹ 10,001 and above | ₹ 200 (most months) | ₹ 2,500* |
*The annual cap on Maharashtra PT is ₹ 2,500. To reach this cap, the February deduction is set higher than the regular months (see next section).
The February anomaly
Why February PT is ₹ 300, not ₹ 200
For employees above ₹ 10,000/month, regular monthly PT is ₹ 200. Maharashtra caps annual PT at ₹ 2,500. 11 months × ₹ 200 = ₹ 2,200. To reach the ₹ 2,500 cap, February's deduction is ₹ 300. This catches first-time payroll managers off guard if they assume ₹ 200 flat for all 12 months.
If your payroll system is configured for ₹ 200 every month including February, you under-deduct by ₹ 100 per employee per year. Across 100 employees, that is ₹ 10,000 of underpayment to the state, which compounds across years.
PTRC vs PTEC: which do you need
Maharashtra has two PT registration types and most Mumbai businesses need both:
| PTRC (Registration Certificate) | PTEC (Enrollment Certificate) | |
|---|---|---|
| Who | Employer, on behalf of employees | Business entity itself |
| Why | To deduct and deposit PT from salaries | For PT on the business's own income |
| How often paid | Monthly (or annually, depending on liability) | Annually (₹ 2,500) |
| Filing | Monthly or annual return depending on slab | Annual payment, no separate return |
A typical Mumbai SMB with a registered company and salaried employees needs both: PTRC to manage employee deductions, PTEC for the company's own annual PT.
Due dates and filing schedule
If your monthly PT liability is above ₹ 1,00,000, you file monthly. Smaller businesses file annually.
- Monthly PT filing: By the last day of the following month. April PT is paid and filed by 31 May.
- Annual PT filing: By 31 March of each year, covering the full financial year.
- PTEC (employer's own): Annual payment by 30 June each year.
Penalties for late or non-payment
Late filing or non-payment of Maharashtra PT attracts:
- Interest: 1.25% per month on unpaid PT amount.
- Penalty: 10% of tax due for late filing.
- Penalty for non-registration: ₹ 5 per day from the date business became liable.
- Penalty for late returns: ₹ 1,000 to ₹ 2,000 depending on delay.
These penalties stack. For an SMB with 200 employees that misses a few cycles, total exposure can run into lakhs at audit time.
How factoHR handles PT
For factoHR payroll customers, Maharashtra PT runs in the background. You configure the company once during onboarding, and the system handles the rest:
- Maharashtra slabs pre-built and applied automatically based on each employee's monthly gross.
- February's ₹ 300 deduction applied correctly for above-₹10,000 employees.
- NIL deduction for employees below ₹ 7,500/month.
- Monthly PT return prepared in the exact Maharashtra format for filing.
- PTRC and PTEC distinction handled separately.
- Auto-update when Maharashtra Finance Department revises slabs.
- Audit-ready reports showing PT deducted, deposited, and reconciled per period. Bundled with ESIC, PF, LWF and TDS for full coverage.
For most customers, the only time PT comes up in conversation is at year-end audit when the auditor confirms everything balances. Which it always does.
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