Professional Tax Consultant in Mumbai

Let's walk through exactly what you need to do to stay compliant with Professional Tax in Mumbai.

Step 1: Register Your Establishment

If you're operating a business in Mumbai with employees, you need to register for Professional Tax. This is done through the MAITRI portal (mahavat.gov.in).

You'll need:

• Business registration documents (Incorporation Certificate, Partnership Deed, etc.)
• PAN card of the business
• Address proof of your office/establishment
• Bank account details
• Details of partners/directors
• Expected number of employees

Once registered, you'll receive a PT Registration Number (also called Enrolment Certificate Number). This number is used for all future PT transactions.

Registration timeline: Do this within 30 days of starting operations or hiring your first employee. For existing businesses that somehow haven't registered yet, do it immediately—late registration attracts penalties.

Step 2: Enroll Every Employee

Each employee needs a PT enrolment number. In practice, many businesses handle this collectively through their employer registration rather than individual employee registrations, but technically each employee should have their PT number documented.

For new hires, this should be part of your onboarding checklist. You don't need to do anything complex—just ensure their details are recorded in your PT register.

Step 3: Calculate PT Deductions Monthly

Every month when you process payroll, you need to calculate PT based on the gross salary paid.

Basically, everything that's part of the salary payment counts. Don't exclude anything unless it's a genuine reimbursement (like travel reimbursement against bills).

Practical tip: Most payroll software automatically calculates PT based on the gross salary. If you're using Excel, create a formula that checks the salary amount and applies the correct slab.

Remember February: In February, the PT deduction is different (₹325 instead of ₹625 for the top slab). Set a reminder so you don't forget this adjustment.

Step 4: Deduct from Employee Salaries

The PT amount is deducted from the employee's net salary. It should clearly appear on the payslip as "Professional Tax" so employees understand the deduction.

Important: You cannot skip deducting PT one month and double-deduct the next month. If you miss a deduction (say, an employee joined mid-month and you forgot to deduct PT), you're still liable to pay the government—but recovering it from the employee later gets messy. Better to get it right the first time.

Step 5: Remit Payment to the Government

All the PT you've deducted needs to be paid to the Maharashtra government by the last working day of the month (or the 30th/31st, whichever comes first).

Payment is made online through the MAITRI portal or GRAS (Government Receipt Accounting System). You can set up auto-debit so the payment happens automatically, which is highly recommended.

Example scenario:

• You process November salary on November 28th
• You deduct PT from all employees' salaries
• You credit salaries on November 30th
• You must pay the total PT collected to the government by November 30th

Some companies process salaries early (say, on the 25th) and pay PT immediately. Others process on the last day and pay the same day. Either works, as long as payment reaches the government by month-end.

Step 6: File PT Returns

In addition to paying, you need to file returns declaring how much PT you've collected and paid.

For businesses with 50+ employees: Monthly return (Form 1) must be filed by the last day of the month.

For businesses with fewer than 50 employees: You can file quarterly returns instead of monthly:

• Q1 (Apr-Jun): File by July 31
• Q2 (Jul-Sep): File by October 31
• Q3 (Oct-Dec): File by January 31
• Q4 (Jan-Mar): File by April 30

Most Mumbai businesses prefer monthly filing even if they're eligible for quarterly, because it's easier to track and you don't have large accumulated amounts.

Step 7: Annual Reconciliation

By April 30 every year, you need to file an Annual Return (Form II) that reconciles the entire year's PT collections and payments.

This return should match:

• Total gross salaries paid throughout the year
• Total PT deducted from employees
• Total PT remitted to the government
• Any corrections or adjustments

This is also when you'd claim any refunds if you've overpaid, or settle any shortfalls if you've underpaid.