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 Range | PT/Month |
---|
Up to Rs.15000 | 0 |
Rs.15001 to Rs.20000 | Rs.150 |
Above Rs.20001 | Rs.200 |
Assam
Monthly Salary Range | PT/Month |
---|
Up to Rs.10000 | Nil |
Rs.10001 to Rs.15000 | Rs.150 |
Rs.15001 to Rs.24999 | Rs.180 |
Above Rs.25000 | Rs.208 |
Bihar
Yearly Salary Range | PT/Year |
---|
Up to Rs. 300000 | 0 |
Rs.300001 to Rs.500000 | Rs.1000 |
Rs.500001 to Rs.1000000 | Rs.2000 |
Above Rs.1000001 | Rs.2500 |
Gujarat
Monthly Salary Range | PT/Month |
---|
Rs.1 to Rs.5999 | 0 |
Rs.6000 to Rs.8999 | Rs.80 |
Rs.9000 to Rs.11999 | Rs.150 |
Above Rs.12000 | Rs.200 |
Jharkhand
Yearly Salary Range | PT/Year |
---|
Up yo Rs. 300000 | 0 |
Rs.300001 to Rs.500000 | Rs.1200 |
Rs.500001 to Rs.800000 | Rs.1800 |
Rs.800001 to Rs.1000000 | Rs.2100 |
Above Rs.1000001 | Rs.2500 |
Karnataka
Monthly Salary Range | PT/Month |
---|
Rs. 1 to Rs. 9999 | 0 |
Rs.10000 to Rs.14999 | 0 |
Above Rs.15000 | Rs.200 |
Kerala
Panchayat
Half Yearly Income | PT/Half Year |
---|
Rs.1 to Rs.11999 | 0 |
Rs 12000 to Rs 17999. | Rs.120 |
Rs 18000 to Rs 29999 | Rs.180 |
Rs 30000 to Rs 44999 | Rs.300 |
Rs 50000 to Rs 59999 | Rs.450 |
Rs 60000 to Rs 74999 | Rs.600 |
Rs 75000 to Rs 99999 | Rs.750 |
Rs 100000 to Rs 124999 | Rs.1000 |
Above Rs 125000 | Rs.1250 |
Cochin Corporation
Half Yearly Income | PT/Half Year |
---|
Rs.1 to Rs.3599 | Rs.9 |
Rs.4000 to Rs.5399 | Rs.15 |
Rs.5400 to Rs.7799 | Rs.24 |
Rs.7800 to Rs.14399 | Rs.37 |
Rs.14400 to Rs.17999 | Rs.50 |
Rs.18000 to Rs.23999 | Rs.75 |
Rs.24000 to Rs.29999 | Rs.100 |
Rs.30000 to Rs.35999 | Rs.125 |
Rs.36000 to Rs.41999 | Rs.175 |
Rs.42000 to Rs.47999 | Rs.250 |
Rs.48000 to Rs.71999 | Rs.500 |
Rs.72000 to Rs.101999 | Rs.750 |
Rs.102000 to Rs.125999 | Rs.1,000 |
Above Rs.126000 | Rs.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 Salary | Annual PT |
---|
Below Rs.225000 | Nil |
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 Salary | Monthly PT |
---|
Below Rs. 18750 | Nil |
Rs. 18750 – Rs. 25000 | 125 |
Rs. 25000 – Rs. 33333 | 167 |
Above Rs. 33333 | 208 |
Maharashtra
Monthly Salary Range | PT/Month |
---|
Rs.1 to 7500 | 0 |
Rs.7501 to Rs.10000 For male employees | Rs.175 |
Rs.7501 to Rs.10000 For women employees | 0 |
Above Rs.10001 | Rs. 200
|
Above Rs.10001 (for the month of February) | Rs. 300 |
Manipur
Yearly Salary Range | PT/Year |
---|
Up to 50000 | 0 |
Rs.50001 to Rs. 75000 | Rs.1200 |
Rs.75001 to Rs.100000 | Rs.2000 |
Rs.100001 to Rs.125000 | Rs.2400 |
Above Rs.125001 | Rs.2500 |
Meghalaya
Yearly Salary Range | PT/Month |
---|
Up to Rs.50000 | 0 |
Rs. 50001 to Rs.75000 | Rs.200 |
Rs.75001 to Rs.100000 | Rs.300 |
Rs.100001 to Rs.150000 | Rs.500 |
Rs.150001 to Rs.200000 | Rs.750 |
Rs.200001 to Rs.250000 | Rs.1000 |
Rs.250001 to Rs.300000 | Rs.1250 |
Rs.300001 to Rs.350000 | Rs.1500 |
Rs.350001 to Rs.400000 | Rs.1800 |
Rs.400001 to Rs.450000 | Rs.2100 |
Rs. 450001 to Rs.500000 | Rs.2400 |
Above Rs.500001 | Rs.2500 |
Mizoram
Yearly Salary Range | PT/Month & Year |
---|
Up to Rs.5000 | 0 |
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 Range | PT/Month |
---|
Up to Rs. 4000 | 0 |
Rs.4001 to Rs.5,000 | Rs.35 |
Rs. 5001 to Rs. 7000 | Rs.75 |
Rs.7001 to Rs.9000 | Rs.110 |
Rs.9001 to Rs.12000 | Rs.180 |
Above Rs.12000 | Rs.208 |
Odisha
Yearly Salary Range | PT/Month |
---|
Up to Rs. 160000 | 0 |
Rs.160001 to Rs. 300000 | Rs.125 |
Above Rs. 300001 | Rs.200 for 11 months Rs.300 to be deducted for the 12th. month |
Puducherry
Half Yearly Salary Range | PT/ Half Year |
---|
Up to Rs.99999 | Nil |
Rs.100000 to Rs.200000 | Rs.250 |
Rs.200001 to Rs.300000 | Rs.500 |
Rs.300001 to Rs.400000 | Rs.750 |
Rs.400001 to Rs.500000 | Rs.1000 |
Above Rs.500001 | Rs.1250 |
Punjab
Class of persons | PT/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 Range | PT/Month |
---|
Up to Rs.20000 | 0 |
Rs.20001 to Rs.30000 | Rs.125 |
Rs.30001 to Rs.40000 | Rs.150 |
Above Rs.40001 | Rs.200 |
Tamil Nadu
Chennai Corporation
Half Yearly Salary Range | PT/Month |
---|
Up to Rs.21000 | 0 |
Rs.21001 to Rs.30000 | Rs. 135 |
Rs.30001 to Rs.45000 | Rs. 315 |
Rs.45001 To Rs.60000 | Rs. 690 |
Rs.60001 to Rs.75000 | Rs. 1025 |
Above 75001 | Rs. 1250 |
Salem Corporation
Six Months Income | PT/Six Month |
---|
Up to Rs. 21000 | 0 |
Rs. 21001 to Rs. 30000 | 101 |
Rs. 30001 to Rs. 45000 | 254 |
Rs. 45001 to Rs. 60000 | 507 |
Rs. 60001 to Rs. 75000 | 761 |
Above Rs. 75001 | 1014 |
Coimbatore Corporation
Six Months Income | PT/Six Month |
---|
Up to Rs. 21000 | 0 |
Rs. 21001 to Rs. 30000 | 127 |
Rs. 30001 to Rs. 45000 | 317 |
Rs. 45001 to Rs. 60000 | 634 |
Rs. 60001 to Rs. 75000 | 950 |
Above Rs. 75001 | 1,250 |
Tirunelveli Corporation
Six Months Income | PT/Six Month |
---|
Up to Rs. 21000 | 0 |
Rs. 21001 to Rs. 30000 | 98 |
Rs. 30001 to Rs. 45000 | 244 |
Rs. 45001 to Rs. 60000 | 488 |
Rs. 60001 to Rs. 75000 | 731 |
Above Rs. 75001 | 975 |
Trichy Corporation
Six Months Income | PT/Six Month |
---|
Up to Rs. 21000 | 0 |
Rs. 21001 to Rs. 30000 | 130 |
Rs. 30001 to Rs. 45000 | 330 |
Rs. 45001 to Rs. 60000 | 660 |
Rs. 60001 to Rs. 75000 | 990 |
Above Rs. 75001 | 1320 |
Madurai Corporation
Six Months Income | PT/Six Month |
---|
Up to Rs. 21000 | 0 |
Rs. 21001 to Rs. 30,000 | 125 |
Rs. 30001 to Rs. 45,000 | 300 |
Rs. 45001 to Rs. 60,000 | 615 |
Rs. 60001 to Rs. 75,000 | 920 |
Above Rs. 75001 | 1220 |
Hosur Corporation
Six Months Income | PT/Six Month |
---|
Rs. 0 to Rs. 2999 | 0 |
Rs.3000 to Rs.4999 | Rs.25 |
Rs.5000 to Rs.7999 | Rs.50 |
Rs.8000 to Rs.9999 | Rs.75 |
Rs.10000 to Rs.14999 | Rs.100 |
Rs.15000 to Rs.19999 | Rs.150 |
Above Rs.20000 | Rs.200 |
Dindigul Municipality
Six Months Income | PT/Six Month |
---|
Rs. 0 to Rs. 21000 | Rs.0 |
Rs. 21001 to Rs. 30000 | Rs.120 |
Rs. 31001 to Rs. 45000 | Rs.300 |
Rs. 45001 to Rs. 60000 | Rs.590 |
Rs. 60001 to Rs. 75000 | Rs.890 |
Above Rs. 75001 | Rs.1180 |
Panchayats
Six Months Income | PT/Six Month |
---|
Up to Rs. 21000 | 0 |
Rs. 21001 to Rs. 30000 | Rs.60 |
Rs. 30001 to Rs. 45000 | Rs.150 |
Rs. 45001 to Rs. 60000 | Rs.300 |
Rs. 60001 to Rs. 75000 | Rs.450 |
Above Rs. 75001 | Rs.600 |
Telangana
Monthly Salary Range | PT/Month |
---|
Up to Rs.15000 | 0 |
Rs.15001 to Rs.20000 | Rs.150 |
Above Rs.20001 | Rs.200 |
Tripura
Yearly Salary Range | PT/Month |
---|
Up to Rs.5000 | 0 |
Rs.5001 to Rs.7000 | 70 |
Rs.7001 to Rs.9000 | 120 |
Rs.9001 to Rs.12000 | 140 |
Rs.12001 to Rs.15000 | 190 |
Above Rs.15001 | 208 |
West Bengal
Yearly Salary Range | PT/Month |
---|
Up to Rs.8500 | 0 |
Rs.8501 to Rs.10000 | 0 |
Rs.10001 to Rs.15000 | Rs.110 |
Rs.15001 to Rs.25000 | Rs.130 |
Rs.25001 to Rs.40000 | Rs.150 |
Above Rs.40001 | Rs.200 |
Professional Tax Not Applicable In The States Mentioned Below
Central | Andaman and Nicobar Islands | Rajasthan | Himachal Pradesh |
Chattisgarh | Dadra and Nagar Haveli | Arunachal Pradesh | Uttar Pradesh |
Goa | Haryana | Daman and Diu | Chandigarh |
Delhi | Jammu and Kashmir | Uttaranchal |
|
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
- Fails to Get Registration: He will be liable to a penalty for the period during which he remains unregistered.
- Fails to Deposit to the Government/ Late Deposition: He will be liable to a penalty for the period during which he remains unregistered.
- 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.