PTEC (Professional Tax Enrolment Certificate)

PTEC is the registration taken for an individual’s own professional tax liability. It is generally required by self‑employed professionals, sole proprietors without employees, partners in firms and directors of companies. Once registered under PTEC, the person pays a fixed amount of professional tax each year to the state government, irrespective of the number of businesses or designations they hold.

PTRC (Professional Tax Registration Certificate)

PTRC, or Professional Tax Registration Certificate, is taken by employers who have salaried staff. With this registration, the employer becomes responsible for deducting professional tax from employees’ salaries every month and depositing it with the state government. A business that has employees in a state must obtain PTRC in that state, in addition to PTEC for its owners or directors.

Who Must Pay Professional Tax?

• Self‑employed individuals such as consultants, doctors, architects, accountants, designers, and other professionals earning income from their own practice.
• Business owners including proprietors, partners and company directors who receive remuneration, profit share or fees from a business carried on in the state.
• Employers with salaried staff who must register under PTRC, deduct professional tax from employees’ monthly salaries and remit it to the state tax department within the prescribed due dates.