Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 9 October 2026
PTEC: the certificate most owners forget
Every business owner, professional and director enrols once for a Professional Tax Enrolment Certificate and then pays ₹2,500 every year by 30 June — it is a flat liability on the entity/person, separate from anything deducted from staff. New enrolments pay within a month of enrolment. Maharashtra also offers a one-time composition: pay roughly four years’ tax in advance and cover five (worth asking for when cash flow allows).
PTRC: the employer’s deduction cycle
Salary PT deducted from employees (₹200 a month at the top slab, ₹300 in February) is deposited under your PTRC. The return cycle follows the previous year’s liability: ₹1 lakh or more → monthly returns, due by the end of the following month; below ₹1 lakh → one annual return by 31 March of the year. First-year employers file monthly. Late returns attract a fixed late fee and interest runs on late payment.
Where businesses slip
The classic misses: enrolling for PTRC but forgetting the owner’s own PTEC; directors’ PTEC in each state the company operates; and treating PT as “too small to matter” until a works-contract registration or a bank diligence asks for clearances. PT is also a deduction employees lose in the new regime — but the employer’s obligation to deduct and deposit is untouched. Our payroll & labour compliance service runs PTEC/PTRC alongside PF and ESI on one calendar.