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Professional Tax

If you take a look at your payslips you will notice that there is a small deduction mentioned along with all the HRA, conveyance and basic salary break ups. This deduction is generally to the tune of INR 200 or so and is called Professional Tax.

The respective state governments in India levy the professional tax on income from profession or employment. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government. In case of other class of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one state to another, but it has a maximum limit of INR 2500/- per year.

Professional Tax Registration and Returns

 Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. Professional tax needs to be deducted from the salary or wages paid amount. Application for the Registration Certificate should be made to the assesse's state tax department within 30 days of employing staff for his business. If the assesse's has more than one place of work, then application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.

 If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).

Professional Tax Applicable States Across India

 

 Andhra Pradesh
Monthly Salary RangePT/Month
Up to Rs.150000
Rs.15001 to Rs.20000Rs.150
Above Rs.20001Rs.200
 Assam
Monthly Salary RangePT/Month
Up to Rs.10000Nil
Rs.10001 to Rs.15000Rs.150
Rs.15001 to Rs.24999Rs.180
Above Rs.25000Rs.208
 Bihar
Yearly Salary RangePT/Year
Up to Rs. 3000000
Rs.300001 to Rs.500000Rs.1000
Rs.500001 to Rs.1000000Rs.2000
Above Rs.1000001Rs.2500
 Gujarat
Monthly Salary RangePT/Month
Rs.1 to Rs.59990
Rs.6000 to Rs.8999Rs.80
Rs.9000 to Rs.11999Rs.150
Above Rs.12000Rs.200
 Jharkhand
Yearly Salary RangePT/Year
Up yo Rs. 3000000
Rs.300001 to Rs.500000Rs.1200
Rs.500001 to Rs.800000Rs.1800
Rs.800001 to Rs.1000000Rs.2100
Above Rs.1000001Rs.2500
 Karnataka
Monthly Salary RangePT/Month
Rs. 1 to Rs. 99990
Rs.10000 to Rs.149990
Above Rs.15000Rs.200
 Kerala

Guideline

  • Profession Tax is always paid on half yearly basis.
  • For the first half of theyear, that is, April - Sept, the tax is to be paid on or before 31 Aug. For the second half of the year, that is, Oct - Mar, tax is to be paid on or before 28 Feb.
  • For Panchayats & Corporation, the PT slab differs.

Panchayat

Half Yearly IncomePT/Half Year
Rs.1 to Rs.119990
Rs 12000 to Rs 17999.Rs.120
Rs 18000 to Rs 29999Rs.180
Rs 30000 to Rs 44999Rs.300
Rs 50000 to Rs 59999Rs.450
Rs 60000 to Rs 74999Rs.600
Rs 75000 to Rs 99999Rs.750
Rs 100000 to Rs 124999Rs.1000
Above Rs 125000Rs.1250

Cochin Corporation

Half Yearly IncomePT/Half Year
Rs.1 to Rs.3599Rs.9
Rs.4000 to Rs.5399Rs.15
Rs.5400 to Rs.7799Rs.24
Rs.7800 to Rs.14399Rs.37
Rs.14400 to Rs.17999Rs.50
Rs.18000 to Rs.23999Rs.75
Rs.24000 to Rs.29999Rs.100
Rs.30000 to Rs.35999Rs.125
Rs.36000 to Rs.41999Rs.175
Rs.42000 to Rs.47999Rs.250
Rs.48000 to Rs.71999Rs.500
Rs.72000 to Rs.101999Rs.750
Rs.102000 to Rs.125999Rs.1,000
Above Rs.126000Rs.1,250
 Madhya Pradesh

The Government of Madhya Pradesh has revised the Professional Tax slab rate payable by the employees employed in the private sector. The new rates will be applicable w.e.f. 01-04-2018.

Annual SalaryAnnual PT
Below Rs.225000Nil

Rs. 225000 – Rs. 300000

1500

Rs. 300000 – Rs. 400000

2000

Above Rs. 400000

2500

PT is deducted from the monthly salary of the employees in equal installments and deposited with the department using professional tax

Below will be the actual monthly PT deduction rate:

Monthly SalaryMonthly PT
Below Rs. 18750Nil
Rs. 18750 – Rs. 25000125

Rs. 25000 – Rs. 33333

167
Above Rs. 33333208
 Maharashtra
Monthly Salary RangePT/Month
Rs.1 to 75000

Rs.7501 to Rs.10000

For male employees

Rs.175

Rs.7501 to Rs.10000

For women employees
0
Above Rs.10001Rs. 200
Above Rs.10001 (for the month of February)Rs. 300
 Manipur
Yearly Salary RangePT/Year
Up to 500000
Rs.50001 to Rs. 75000Rs.1200
Rs.75001 to Rs.100000Rs.2000
Rs.100001 to Rs.125000Rs.2400
Above Rs.125001Rs.2500
 Meghalaya
Yearly Salary RangePT/Month
Up to Rs.500000
Rs. 50001 to Rs.75000Rs.200
Rs.75001 to Rs.100000Rs.300
Rs.100001 to Rs.150000Rs.500
Rs.150001 to Rs.200000Rs.750
Rs.200001 to Rs.250000Rs.1000
Rs.250001 to Rs.300000Rs.1250
Rs.300001 to Rs.350000Rs.1500
Rs.350001 to Rs.400000Rs.1800
Rs.400001 to Rs.450000Rs.2100
Rs. 450001 to Rs.500000Rs.2400
Above Rs.500001Rs.2500
 Mizoram
Yearly Salary RangePT/Month & Year
Up to Rs.50000
Rs.5001 to Rs.8000

Rs.75 per month OR

Assessee may pay in lump sum INR 900 per annum

Rs.8001 to Rs.10000

Rs.120 per month OR

Assessee may pay in lump sum INR 1440 per annum

Rs. 10001 to Rs.12000

Rs.150 per month OR

Assessee may pay in lump sum INR 1800 per annum

Rs.12001 to Rs.15000

Rs.180 per month OR

Assessee may pay in lump sum INR 2160 per annum

Above Rs.15001

Rs.208 per month OR

Assessee may pay in lump sum INR 2500 per annum

 Nagaland
Yearly Salary RangePT/Month
Up to Rs. 40000
Rs.4001 to Rs.5,000Rs.35
Rs. 5001 to Rs. 7000Rs.75
Rs.7001 to Rs.9000Rs.110
Rs.9001 to Rs.12000Rs.180
Above Rs.12000Rs.208
 Odisha
Yearly Salary RangePT/Month
Up to Rs. 1600000
Rs.160001 to Rs. 300000Rs.125
Above Rs. 300001

Rs.200 for 11 months

Rs.300 to be deducted for the 12th. month

 Puducherry
Half Yearly Salary RangePT/ Half Year
 Up to Rs.99999Nil
Rs.100000 to Rs.200000Rs.250
Rs.200001 to Rs.300000Rs.500
Rs.300001 to Rs.400000Rs.750
Rs.400001 to Rs.500000Rs.1000
Above Rs.500001Rs.1250

The state slabs for the PT to be paid are 1st April to 30th September, and 1st October to 31st March, every year.

 Punjab
Class of personsPT/Month
All such persons who are assessable under the Head Income from salaries and or wages as per Income Tax Act, 1961.Rs. 200
All such persons who are assessable under the Head Income from business and or profession as per Income Tax Act, 1961.Rs. 200
 Sikkim
Yearly Salary RangePT/Month
Up to Rs.200000
Rs.20001 to Rs.30000Rs.125
Rs.30001 to Rs.40000Rs.150
Above Rs.40001Rs.200
 Tamil Nadu

Chennai Corporation

Half Yearly Salary RangePT/Month
Up to Rs.210000
Rs.21001 to Rs.30000Rs. 135
Rs.30001 to Rs.45000Rs. 315
Rs.45001 To Rs.60000Rs. 690
Rs.60001 to Rs.75000Rs. 1025
Above 75001Rs. 1250

Guideline

Profession Tax shall be collected from the salary of August and January. The slab rate differs for some corporations and panchayats across Tamil Nadu.

Salem Corporation

Six Months Income

PT/Six Month
Up to Rs. 210000
Rs. 21001 to Rs. 30000101
Rs. 30001 to Rs. 45000254
Rs. 45001 to Rs. 60000507
Rs. 60001 to Rs. 75000761
Above Rs. 750011014

Coimbatore Corporation

Six Months IncomePT/Six Month
Up to Rs. 210000
Rs. 21001 to Rs. 30000127
Rs. 30001 to Rs. 45000317
Rs. 45001 to Rs. 60000634
Rs. 60001 to Rs. 75000950
Above Rs. 750011,250

Tirunelveli Corporation

Six Months IncomePT/Six Month
Up to Rs. 210000
Rs. 21001 to Rs. 3000098
Rs. 30001 to Rs. 45000244
Rs. 45001 to Rs. 60000488
Rs. 60001 to Rs. 75000731
Above Rs. 75001975

Trichy Corporation

Six Months IncomePT/Six Month
Up to Rs. 210000
Rs. 21001 to Rs. 30000130
Rs. 30001 to Rs. 45000330
Rs. 45001 to Rs. 60000660
Rs. 60001 to Rs. 75000990
Above Rs. 750011320

Madurai Corporation

Six Months IncomePT/Six Month
Up to Rs. 210000
Rs. 21001 to Rs. 30,000125
Rs. 30001 to Rs. 45,000300
Rs. 45001 to Rs. 60,000615
Rs. 60001 to Rs. 75,000920
Above Rs. 750011220

Hosur Corporation

Six Months IncomePT/Six Month
Rs. 0 to Rs. 29990
Rs.3000 to Rs.4999Rs.25
Rs.5000 to Rs.7999Rs.50
Rs.8000 to Rs.9999Rs.75
Rs.10000 to Rs.14999Rs.100
Rs.15000 to Rs.19999Rs.150
Above Rs.20000Rs.200

Dindigul  Municipality

Six Months IncomePT/Six Month
Rs. 0 to Rs. 21000Rs.0
Rs. 21001 to Rs. 30000Rs.120
Rs. 31001 to Rs. 45000Rs.300
Rs. 45001 to Rs. 60000Rs.590
Rs. 60001 to Rs. 75000Rs.890
Above Rs. 75001Rs.1180

Panchayats

Six Months IncomePT/Six Month
Up to Rs. 210000
Rs. 21001 to Rs. 30000Rs.60
Rs. 30001 to Rs. 45000Rs.150
Rs. 45001 to Rs. 60000Rs.300
Rs. 60001 to Rs. 75000Rs.450
Above Rs. 75001Rs.600
 Telangana
Monthly Salary RangePT/Month
Up to Rs.150000
Rs.15001 to Rs.20000Rs.150
Above Rs.20001Rs.200
 Tripura
Yearly Salary RangePT/Month
Up to Rs.50000
Rs.5001 to Rs.700070
Rs.7001 to Rs.9000120
Rs.9001 to Rs.12000140
Rs.12001 to Rs.15000190
Above Rs.15001208
 West Bengal
Yearly Salary RangePT/Month
Up to Rs.85000
Rs.8501 to Rs.100000
Rs.10001 to Rs.15000Rs.110
Rs.15001 to Rs.25000Rs.130
Rs.25001 to Rs.40000Rs.150
Above Rs.40001Rs.200

Professional Tax Not Applicable In The States Mentioned Below

CentralAndaman and Nicobar IslandsRajasthanHimachal Pradesh
ChattisgarhDadra and Nagar HaveliArunachal PradeshUttar Pradesh
GoaHaryanaDaman and DiuChandigarh
DelhiJammu and KashmirUttaranchal

Exemptions

 There are exemptions provided for certain individuals to pay Professional Tax under the Professional Tax Rules.

 The following individuals are exempted to pay Professional Tax:

  • Parents of children with permanent disability or mental disability.

  • Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.

  • Badli workers in the textile industry.

  • An individual suffering from a permanent physical disability (including blindness).

  • Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.

  • Parents or guardians of individuals suffering from mental disability.

  • Individuals, above 65 years of age.

Professional Tax in India

The maximum amount of Professional Tax that can be imposed by any state in India is INR 2500/-. Total amount of Professional Tax paid during the year is allowed as deduction under the Income Tax Act. The Professional Tax is a source of revenue for the state governments which helps in implementing schemes for the welfare and development of the region. Professional Tax is deducted by the employers from the salary of the salaried employees, and is deposited with the state government. Other individuals, pay it directly to the government or through the local bodies appointed to do so.

Consequences

  1. Fails to Get Registration: He will be liable to a penalty for the period during which he remains unregistered.
  2. Fails to Deposit to the Government/ Late Deposition: He will be liable to a penalty for the period during which he remains unregistered.
  3. Non-Deposition of Amount: The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution case also can be filed.

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