Professional Tax for Employees not paid how much penalty attracts

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ARCHANA (Querist)
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12 August 2024 Sir/Mam,

in proprietor concern business regularly employee changes only few members regular we are not deducted PT and not paid and returns filed till now

but few employees are regular now onwards we deduct and file returns , so if we not paid PT last year what is the penalty attracts, what is the process of filing professional returns due date etc

plz kindly explain all process of Professional tax for employees

Thanking you,

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 1. What is Professional Tax (PT)?
PT is a state-level tax levied on income earned by employees, professionals, and traders.
Each state has its own PT Act (e.g., Tamil Nadu PT Act).
Employers are responsible for deducting PT from employees’ salary and depositing it with the government.
2. If PT is not deducted/paid for employees:
Penalty and interest are levied for non-deduction or late payment.
Penalties vary by state, but generally:
Violation Penalty / Consequence
Non-deduction / non-payment Fine up to Rs. 5,000 per employee (varies)
Late payment Interest @ 15% p.a. on delayed amount
Failure to file returns Penalty for late filing of returns
3. Process for Professional Tax Compliance:
Step 1: Registration
Employer must register under the state PT Act (if not done already).
Obtain PT Registration Number.
Step 2: Deduct PT from employees’ salary
PT slabs are notified by the state government.
Deduct monthly PT amount based on employee salary slab.
Step 3: Deposit PT to Government
Deposit the deducted PT before due date (usually 15th of next month).
Use the state’s online PT portal or authorized banks.
Step 4: File Returns
File Monthly or Quarterly PT Returns as per state requirement.
Returns include details of employees, salary, PT deducted, and paid.
4. Due dates for PT deposit and returns (example: Tamil Nadu)
Activity Due Date
Monthly PT Deposit By 15th of next month
Quarterly Return Filing By 30th of April, July, October, January
Note: Different states may have different due dates and frequency.
5. If PT was not paid for previous years:
Calculate the outstanding PT for all employees for those months.
Pay the principal amount along with interest (usually 15%) for delay.
Penalty can be imposed by authorities (up to Rs. 5,000 or as per state rules).
File late returns for those periods.
It’s advisable to approach PT department and regularize the payment.

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