PT Registration Karnataka PTRC PTEC: Essential 2026 Compliance
If you are running a business in Bengaluru or anywhere in the state, complying with PT Registration Karnataka PTRC PTEC is mandatory under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Professional Tax ensures fair taxation on salaries and business entities, funding vital state welfare programs. For modern businesses, this involves two key registrations: PTRC for employers and PTEC for self-employed professionals or entities.
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What is PTRC? Employer Responsibilities
PTRC (Professional Tax Registration Certificate) is mandatory for any employer (Company, LLP, or Firm) in Karnataka with even one employee earning ₹25,000 or more per month. As the employer, you are legally responsible for deducting the tax and remitting it via the e-Prerana portal.
🚨 Important 2026 Update:
While the standard monthly deduction is ₹200, the Karnataka Commercial Taxes Department requires a deduction of ₹300 specifically for February 2026.
- Due Date: Remit by the 20th of the next month.
- Annual Return: Employers must file Form 5 within 60 days of the financial year-end.
What is PTEC? Business Entity Obligations
PTEC (Professional Tax Enrollment Certificate) is mandatory for the business entity itself, its directors, and self-employed professionals (CAs, Lawyers, etc.)—regardless of whether you have employees. Even startups must enroll within 30 days of incorporation to avoid penalties.
Annual Enrollment Fee
The flat annual PTEC fee for companies and entities is ₹2,500.
Critical Deadline
Payment must be made by April 30th each year via the official portal.
Late Payment Penalty
Delays attract interest at 1.25% per month and fines up to 50% of the tax due.
Applicability for Private Limited Companies in Bengaluru
Every newly incorporated Private Limited company in Bengaluru is legally mandated to secure a PTEC immediately post-registration. If your startup begins hiring employees, you must additionally obtain a PTRC to facilitate monthly deductions.
With the 2026 increase in statutory audits, the Commercial Taxes Department is proactively identifying companies that have skipped PT enrollment. Proactive setup not only protects your brand reputation but also ensures your MCA V3 and GST records align perfectly.
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Penalties for PT Non-Compliance: What You Need to Know
Missing a PT deadline in Bengaluru can lead to escalating financial liabilities that disrupt your cash flow. Under the current 2026 enforcement, the costs of delay are significant:
Late PTRC/PTEC payments attract a high interest rate of 1.5% per month on the outstanding amount.
A late fee of ₹250 per month is applicable for every delayed annual Form 5 return.
Failure to register or pay voluntarily can result in penalties up to 50% of your total tax liability.
Avoid legal notices and business interruptions. Our experts at **DSCSign** provide end-to-end guidance to ensure your Professional Tax aligns perfectly with your overall compliance calendar.
Simple PTRC & PTEC Registration Process
The journey to 100% compliance in Karnataka is straightforward when you have the right tools. Applications are submitted online via the Karnataka Commercial Taxes Department (CTD) portal. Standard approval typically takes 5-7 working days once your documents (Company PAN, Incorporation Certificate, Address Proof) are verified.
📜 The Authority Letter Requirement
For PTEC and PTRC registration, the department requires a Board Resolution or Authority Letter on the company letterhead. This document authorizes a specific director or professional to sign the application. We provide a pre-verified template for our clients to ensure your submission isn’t rejected due to clerical errors.
Expert Support: Team Instaa utomation & Co.
Need end-to-end handling? We recommend our partner firm, Team Insta & Co. (Company Secretaries & CAs), for seamless registration and monthly filing management. While they handle the legal drafting, our **Karan DSC Team** at DSCSign provides the secure **Class 3 DSC** required for all portal submissions.
Meet the Karan DSC Team
Led by Karan M., with 20+ years of dedicated DSC expertise in Bengaluru, our team at Insta Automation Pvt Ltd focuses exclusively on digital identity security. We ensure your PT filings are encrypted and tamper-proof.
Your compliance choice supports the Team India Foundation—10% of every fee helps educate underprivileged children in Bengaluru.