Updated on June 19, 2025 02:53:21 PM
A profession tax is a state level tax collected from an individual being practicing in any profession, trade, calling or employment and as per the laws prevailing in Madhya Pradesh it is regulated under the Madhya Pradesh State Tax on Professions, Trades, Callings and Employments Act, 1975. From this tax alone, both the local bodies and the state government are benefited and help the government to develop better infrastructure and services. Any employee or employer can incur this tax whereby the employer is under the obligation of withholding an amount of the tax from the employee’s salary and pays it to the state government. It is normally calculated depending on certain income bands with the individuals earning more money paying a larger amount than those earning lesser amounts of money.
Professional tax registration is required by law provided to employers, and it is their responsibility to make sure that they register for it and make payment at the right time of due payment so that they do not attract any penalty. Clients who do not register to pay tax or pay the wrong amount of tax will be subjected to penalties, fines and interest charges on outstanding amounts. It is important hereby for the businesses and individuals to have adequate understanding on the registration process, tax rates that are allowed by law and effects of noncompliance with the law. Compliance higher practices Foster the effective running of the business in the state’s law and also strengthens the government efforts through timely remittance of taxes.
Table of Content
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Madhya Pradesh is possible through the official site of Madhya Pradesh Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Madhya Pradesh :
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Madhya Pradesh Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
For Companies/LLP/Partnership
For Individual
The professional tax in Madhya Pradesh is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 to ₹10,000 | ₹175 per month |
| Above ₹10,000 | ₹2,500 per annum (₹200 per month; ₹300 for February) |
Note: Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty of 2% per month on the outstanding amount may be imposed for late payments.
Conclusion
The process of professional tax registration in Madhya Pradesh is compulsory for the people and the concerned establishments working in several professions, trades, and employment. Paying the taxes as stipulated by the Madhya Pradesh State Tax on Professions, Trades, Callings, and Employments Act, 1975 does not lead to accrual of penalties and legal matters that may halt or hamper the company’s operations. It is relatively easy to register and through an online portal, registration formalities can be done where few documents such as PAN, proof of address, and business details are needed. Companies can ensure that they pay their taxes correctly so that they are not on the receiving end of an audit exercise in the future besides enhancing the state’s governance and public welfare programs.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
"Explore how Professional Utilities have helped businesses reach new heights as their trusted partner."
It was a great experience working with Professional Utilities. They have provided the smoothly. It shows the amount of confidence they are having in their field of work.
Atish Singh
It was professional and friendly experience quick response and remarkable assistance. I loved PU service for section 8 company registration for our Vidyadhare Foundation.
Ravi Kumar
I needed a material safety data sheet for my product and they got it delivered in just 3 days. I am very happy with their professional and timely service. Trust me you can count on them.
Ananya Sharma
Great & helpful support by everyone. I got response & support whenever I called to your system. Heartly thanx for Great & Super Service. Have a Great & Bright future of team & your company.
Prashant Agawekar
Thank you so much Professional Utilities team for their wonderful help. I really appreciate your efforts in getting start business. Pvt Ltd company registration was smooth yet quick.
Abhishek Kumar
I applied for Drug licence and company registration and their follow-up for work and regular updates helped me a lot. They are happily available for any kind of business consultancy.
Vidushi Saini
Great experience went to get my ITR done, process was quite convenient and fast. Had a few queries, am happy about the fact those people explained me all things I wanted to know.
Taniya Garyali
Great services provided by Professional Utilities. They are best in this industry and the best part is their prices are so affordable. Kudos to you. Now you guys are my full-time consultant.
Aftab Alam
Frequently Asked Questions
All the employers and all the persons who engaged in any profession, trade and employment are liable to pay the professional tax in the state of Madhya Pradesh.
Professional tax in Madhya Pradesh is calculated on a monthly basis and is based on the gross wages paid to the employee where varying rates depending on his/her income are charged.
Any professional who does not register or pay professional tax as and when due attracts a penalty of 2% per month on the amount due.
To apply online, you need to go to the official website of the concerned state’s Commercial Tax Department, you need to register, fill the application form, upload the necessary documents and then submit the application form. Once the verification process is complete, you will be issued with either Professional Tax Registration Certificate (PTRC) or the Professional Tax Enrollment Certificate (PTEC).
Speak Directly to our Expert Today
Reliable
Affordable
Assured
Call us on
+91 9958881762
[Mon - Sat, 10am - 7pm]
Write to us
804,8th Floor, Bhandari House- 91, Nehru Place, New Delhi 110019
Reliable
Affordable
Assurity
They've been very helpful in our registration with ICEGATE. It was a small thing with a small amount paid which somehow escalated to a very painful procedure. Never did they say "You've only paid so much. It's too much effort for us.".
Very pleased with their service. Prompt, professional and great communication. Definitely recommend. Special mention for Ms. Razia - she handled our case.
Professional Utilities is fully professional in their work, Rates are too low and genuine. Services and satisfaction are high so I highly recommended Professional Utilities.
They are one of the most genuine and reasonable people. I applied for lmpc certificate through them and they charged me a very nominal amount as compared to what other firms asked .
.svg)
.svg)
