Professional Tax (PT) – Various Indian States

Governing Act

The various State governments of India levies taxes on Employment or Professional Tax under Article 276 (Constitution of India). The state has the power to levy tax and collect. Hence various states in India have individually adopted the Tax on Professions, Trades, Callings and Employments Act,1976 or 1987 and exercised it accordingly.

Professional Tax

Neither the Constitution nor the Act on Professions, Trades, Callings and Employments Act enacted in 1976 or 1987 defines the expressions' profession', 'trades', 'callings' or 'employments'. The dictionary meaning of the word 'Profession' is a calling or employment, occupation to which one devotes himself to the business which one professes for sustenance. The word calling means occupation, profession & trade. Thus all the words employed 'Profession', 'Trade', 'Calling' & 'Employment' carries the same meaning. They appear to have been used as a measure of abundant caution to ensure that no particular category of persons gets excluded from the levy. However, Article 276 of the Constitution also provides for a maximum limit of Rs.2,500, beyond which no State can charge the said Professional Tax.

Who is subject to Professional Tax?

All persons earning by way of employment, carrying on a trade, business, or profession are subject to pay Professional Tax if charged by their respective state.

In Salaried employees' case - Professional Tax is deducted by the employers and deposited with the State Government.

For others -Persons earning the said incomes have to directly pay it to the Government or through the Local Bodies appointed to do so.

The tax has to be collected and deposited as per the timeline provided by the respective State Government.

In case one fails to do so, a penalty and late fee are applicable as per the respective State Act.

Persons exempted from Professional Tax

The following individuals are exempted from payment of Professional Tax under the Professional Tax Rules:

· 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, serving in the state

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

· Parents or Guardians of children with permanent or mental disability

· Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings

  • Individuals (above 65 years)
  • Badli workers in the textile industry

States which do not levy Professional Tax

  • Arunachal Pradesh
  • Andaman & Nicobar Islands
  • Chandigarh
  • Dadra & Nagar Haveli
  • Daman & Diu
  • Delhi
  • Haryana
  • Himachal Pradesh
  • Jammu & Kashmir
  • Lakshadweep
  • Rajasthan
  • Uttar Pradesh
  • Uttarakhand
  • Uttaranchal

Professional Tax rates in various states

Tax rates are presented state-wise (alphabetical order)

  • Professional Tax in Andhra Pradesh and Telangana

Monthly Salary

Monthly Tax Rate

Up to Rs.15,000

Nil

Rs.15,001 to Rs.20,000

Rs.150

Rs.20,000 and above

Rs.200

To access Professional Tax portal of Andhra Pradesh, visit https://www.apct.gov.in/gstportal/ and click on ‘My Profession Tax’ option.

To access Professional Tax portal of Telangana, visit https://tgct.gov.in/tgpt_dealer/Returns/dealer_login.aspx

  • Professional Tax in Assam

Monthly Salary

Monthly Tax Rate

Up to Rs. 10,000

Nil

Rs. 10,001 to Rs.15,000

Rs.150

Rs.15001 to Rs.24,999

Rs.180

Rs.25,000 and above

Rs.208

To access Professional Tax portal of Assam, visit https://comtax.assam.gov.in/

  • Professional Tax in Bihar

Monthly Salary

Monthly Tax Rate

Up to Rs.25,000

Nil

Rs.25,001 to Rs.41,666

Rs.83.33

Rs.41,667 to Rs.83,333

Rs.166.67

Rs.83,334 and above

Rs.208.33

To access Professional Tax portal of Assam, visit https://www.biharcommercialtax.gov.in/bweb/

  • Professional Tax in Goa

Monthly Salary

Monthly Tax Rate

Up to Rs.15,000

Nil

Rs.15,001 to Rs.25,000

Rs.150

Rs.25,001 and above

Rs.200

To access Professional Tax portal of Goa, visithttp://www.goacomtax.gov.in/

  • Professional Tax in Gujarat

Monthly Salary

Monthly Tax Rate

Less than Rs.5,999

Nil

Rs.6,000 to Rs.8,999

Rs.80

Rs.9,000 to Rs.11,999

Rs.150

Rs.12,000 & above

Rs.200

To access Professional Tax portal of Gujarat, visit http://www. commercialtax.gujarat.gov.in/

  • Professional Tax in Jharkhand

Monthly Salary

Monthly Tax Rate

Up to Rs.25,000

Nil

Rs.25,000 to Rs.41,666

Rs.100

Rs.41,667 to Rs. 66,666

Rs.150

Rs.66,666 to Rs. 83,333

Rs.175

Rs.83,333 and above

Rs.208

To access Professional Tax portal of Jharkhand, visit http://jharkhandcomtax.gov.in/home

  • Professional Tax in Karnataka

Monthly Salary

Monthly Tax Rate

Less than Rs.15,000

Nil

Rs.15,000 and above

Rs.200

To access Professional Tax portal of Karnataka, visit https://pt.kar.nic.in/(S(stwfvxr00fcinbxo4nrjvqjr))/Main.aspx

  • Professional Tax in Kerala

Monthly Salary

Monthly Tax Rate

Up to Rs.11,999

Nil

Rs.12,000 to Rs.17,999

Rs.120

Rs.18,000 to 29,999

Rs.180

Rs.30,000 and Rs.44,999

Rs.300

Rs.45,000 to Rs.59,999

Rs.450

Rs.60,000 to Rs.74,999

Rs.600

Rs.75,000 to Rs.99,999

Rs.750

Rs.1,00,000 to Rs.1,24,999

Rs.1,000

Rs.1,25,000 and above

Rs.1,250

To access Professional Tax portal of Kerala, visit http://lsgkerala.gov.in/en/node/1877

  • Professional Tax in Madhya Pradesh

Madhya Pradesh levies Professional tax at Rs.208 for 11 months and Rs.212 for the last month.

Monthly Salary

Monthly Tax Rate

Less than Rs.18,750

Nil

Rs.18,750 to Rs.25,000

Rs.125

Rs.25,000 to Rs.33,333

Rs.167

Rs.33,333 & above

Rs. 208 & 212

To access Professional Tax portal of Madhya Pradesh, visit https://mptax.mp.gov.in/mpvatweb/

  • Professional Tax in Maharashtra

Monthly Salary

Monthly Tax Rate

Less than Rs.7500

Nil

Rs.7,501 to Rs.10,000*

Rs.175

Rs.10,001 and above

Rs.300 for the month of February

Rs.200 for the rest of the year

*Women earning salary up to Rs.10,000 per month are exempted from paying Professional Tax

To access Professional Tax portal of Maharashtra, visit https://www.mahagst.gov.in/en

  • Professional Tax in Manipur

Manipur levies Professional tax at Rs.208 for 11 months and Rs.212 for the last month.

Monthly Salary

Monthly Tax Rate

Up to Rs.4250

Nil

Rs.4251 to Rs.6250

Rs.100

Rs.6251 to Rs.8,333

Rs. 167

Rs.8,334 to Rs.10,416

Rs.200

Rs.10,417 & above

Rs.208 & Rs.212

To access Professional Tax portal of Manipur, visit https://manipurvat.gov.in/

  • Professional Tax in Meghalaya

Monthly Salary

Monthly Tax Rate

Up to Rs.4166

Nil

Rs.4167 to Rs.6250

Rs.16.50

Rs.6251 to Rs.8,333

Rs.25

Rs.8,333 to Rs.12,500

Rs.41.50

Rs.12,501 to Rs.16,666

Rs.62.50

Rs.16,667 to Rs.20,833

Rs.83.33

Rs.20,834 to Rs.25,000

Rs.104.16

Rs.25,001 to Rs.29,166

Rs.125

Rs.29,167 to Rs.33,333

Rs.150

Rs.33,334 to Rs.37500

Rs.175

Rs.37,501 to Rs.41,666

Rs.200

Above 41,667

Rs.208

To access Professional Tax portal of Meghalaya, visithttps://megepayment.gov.in/

  • Professional Tax in Odisha

Monthly Salary

Monthly Tax Rate

Up to Rs.13,304

Nil

Rs.13,305 to Rs.25,000

Rs.125

Rs.25,001 and above

Rs.300 for the month of February

Rs.200 for the rest of the year

To access Professional Tax portal of Odisha, visit https://odishatax.gov.in/

  • Professional Tax in Punjab

Class of Persons

Monthly Tax Rate

All such persons who are assessable under the Head Income from Salaries and/or Profits and Gains from Business or Profession, as per the Income Tax Act,1961. i.e., if the income of the individual is more than Rs.2,50,000 per annum

Rs.200

To access Professional Tax portal of Punjab, visithttps://psdt.punjab.gov.in/

  • Professional Tax in Puducherry

Half yearly Salary

Half yearly Tax Rate

Up to 99,999

Nil

Rs. 1,00,000 to Rs.2,00,000

Rs.250

Rs. 2,00,001 to Rs.3,00,000

Rs.500

Rs.3,00,001 to Rs.4,00,000

Rs.750

Rs.4,00,001 to 5,00,000

Rs.1000

5,00,001 and above

Rs.1250

To access Professional Tax portal of Puducherry, visithttps://gst.py.gov.in/

  • Professional Tax in Sikkim

Monthly Salary

Monthly Tax Rate

Up to Rs.20,000

Nil

Rs.20,001 to Rs.30,000

Rs.125

Rs.30,001 to Rs.40,000

Rs.150

Rs.40,000 & above

Rs.200

To access Professional Tax portal of Sikkim, visit http://www.sikkimtax.gov.in/

  • Professional Tax in Tamil Nadu

Half yearly Salary

Half yearly Tax Rate

Up to Rs.21,000

Nil

Rs.21,001 to Rs.30,000

Rs.135

Rs.30,001 to Rs.45,000

Rs.315

Rs.45,001 to Rs.60,000

Rs.690

Rs.60,001 to Rs.75,000

Rs.1025

Rs.75,001 and above

Rs.1250

To access Professional Tax portal of Tamil Nadu, visit https://chennaicorporation.gov.in/ or http://www.salemcorporation.gov.in

  • Professional Tax in Tripura

Monthly Salary

Monthly Tax Rate

Up to Rs.7500

Nil

Rs.7501 to Rs. 15,000

Rs.1800

(Rs.150 per month)

Rs.15001 and above

Rs.2496

(Rs. 208 per month)

To access Professional Tax portal of Tripura, visit https://ptax.tripura.gov.in/

  • Professional Tax in West Bengal

Monthly Salary

Monthly Tax Rate

Up to Rs.10,000

Nil

Rs.10,001 to Rs.15,000

Rs.110

Rs.15,001 to Rs.25,000

Rs.130

Rs.25,001 to Rs.40,000

Rs.150

Rs.40,000 & above

Rs.200

To access Professional Tax portal of West Bengal, visithttp://wbprofessiontax.gov.in/

Taxation of Professional Tax

The total amount of professional tax paid during the year is allowed as a deduction under the Income Tax Act, 1961. In the case of salaried employees, if the Employer meets the expense on behalf of the employee, it is first added as an income in the employee's hands, and Deduction is then allowed u/s 16.

Related topics

Salary Structure (India)

Cost to Company (CTC)