Compliance Alert: Maharashtra Profession Tax Guide for FY 2025-26

As we navigate the final quarter of the financial year, compliance with the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 remains a priority for both corporate entities and individual practitioners. At MDVB & Associates LLP, we have observed an uptick in departmental notices regarding mismatched returns and late filings.

This guide summarizes the current applicability, slabs, and critical recent updates you need to know.

1. Applicability: PTRC vs. PTEC

Understanding which registration your entity requires is the first step toward compliance:

• PTRC (Registration Certificate): Mandatory for any employer who pays a salary/wage. You act as an agent for the government, deducting tax from employees and depositing it.

• PTEC (Enrollment Certificate): Mandatory for the entity itself (Company, LLP, Partnership) or a self-employed professional (CA, Doctor, Advocate) to pay their own annual tax.

2. Updated Tax Slabs (Effective 2025-26)

Maharashtra continues to offer a significant exemption for women employees to encourage workforce participation.

For Male Employees:

Monthly Gross Salary (INR)	Monthly Tax Payable
Up to ₹7,500	Nil
₹7,501 – ₹10,000	₹175
Above ₹10,000	₹200 (₹300 in Feb)

For Female Employees:

Monthly Gross Salary (INR)	Monthly Tax Payable
Up to ₹25,000	Nil (Exempt)
Above ₹25,000	₹200 (₹300 in Feb)

Pro-Tip: The total annual tax for any individual is capped at ₹2,500. The ₹100 extra in February is simply a balancing figure to reach this annual limit.

3. Important Due Dates for 2026

Missing these dates can lead to an interest charge of 1.25% to 2% per month.

• PTEC (Annual Payment): Usually due by June 30th for existing enrollments.

• PTRC (Monthly Returns): Due by the last day of the month for employers with a previous year's liability of over ₹1,00,000.

• PTRC (Annual Returns): Due by March 31st for smaller employers.

4. Recent Notices & Departmental Updates

The MGST Department has been rigorous in its recent automation drive. Here are three critical updates from late 2025 and early 2026:

1. System Migration Extension (Trade Circular 19T of 2025): Due to technical upgrades in the MAHAGST automation system, the department recently extended the filing deadline for October and November 2025 returns until December 31, 2025.

2. Mismatch Notices: We have seen a surge in notices where the PTRC returns do not match the salary expenses claimed in Income Tax filings. It is vital to reconcile these figures.

3. New Refund Facility (Feb 2026): As of February 3, 2026, the department has activated a new online refund facility for overpaid Profession Tax, which was previously a tedious manual process.

5. Major Exemptions

You may be exempt from paying or deducting PT if the individual falls under these categories:

• Senior Citizens (65 years+ in Maharashtra).

• Persons with 40% or more physical disability (Certificate required).

• Parents or guardians of children with mental/physical disabilities.

• Members of the Armed Forces (Army, Navy, Air Force).

How MDVB & Associates LLP Can Help

Navigating the MAHAGST portal and ensuring timely payments for a growing workforce can be complex. We assist our clients with:

• Fresh PTRC/PTEC registrations.

• Monthly compliance and return filing.

• Responding to departmental "Show Cause" notices regarding arrears.