in-professional-tax

India Professional Tax -- State-Level Skill v1.0

Verified rates & thresholds (accountant-reviewed)

Reviewed against the cited tax authorities by Mayur Deokar on 2026-06-06. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified skill_facts — edit the facts, not the prose.

Professional Tax

• Maximum per annum — ₹2,500 INR (Article 276(2)) (Constitution Art. 276)
• Up to ₹7,500/month — any female employee drawing a monthly gross salary of up to ₹25,000 is completely exempt from paying Profession Tax. If Gross salary exceeds 25000 then Rs 200/month PT Aapplicable(Reference: Maharashtra State Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2023) (Maharashtra PT Act 1975)
• ₹7,501 – ₹10,000 — ₹175/month (Maharashtra PT Act)
• Above ₹10,000 — ₹200/month (₹300 in Feb) = ₹2,500/year (Maharashtra PT Act)
• Karnataka – Up to ₹24,999/month — Nil (Karnataka PT Act 1976)
• ₹25,000+ — Rs 200 /month and Rs 300 for feb month. In total Rs 2500 year. (Karnataka PT Act) (Karnataka PT Act)
• Up to ₹10,000 — Nil (West Bengal PT Act 1979)
• ₹10,001 – ₹15,000 — ₹110/month (WB PT Act)
• ₹15,001 – ₹25,000 — ₹130/month (WB PT Act)
• ₹25,001 – ₹40,000 — ₹150/month (WB PT Act)
• Above ₹40,000 — ₹200/month (WB PT Act)
• Up to ₹5,999 — Upto 12000- Nil above 12000 - Rs 200/month (Reference: Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976) (Gujarat PT Act)
• ₹6,000 – ₹8,999 — Upto 12000- Nil above 12000 - Rs 200/month (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976) (Gujarat PT Act)
• ₹9,000 – ₹11,999 — Upto 12000- Nil above 12000 - Rs 200/month (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976) (Gujarat PT Act)
• ₹12,000+ — Upto 12000- Nil above 12000 - Rs 200/month (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976) (Gujarat PT Act)
• No PT — Delhi, Rajasthan, Uttar Pradesh, Haryana, Punjab (N/A)
• Maximum per annum (Constitutional Limit) — ₹2,500 (Article 276(2)) (Constitution of India, Art. 276)
• Deductibility — Fully deductible under s 16(iii) ITA (old regime) (Income Tax Act, s 16(iii))
• Maharashtra – Up to ₹7,500/month — Any female employee drawing monthly gross salary up to ₹25,000 is completely exempt from PT. If gross salary exceeds ₹25,000, ₹200/month PT applicable. The slab structure in the skill needs to reflect the 2023 amendment. (Maharashtra State Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2023)
• ₹7,501 – ₹10,000 — ₹175/month (Maharashtra PT Act)
• Above ₹10,000 — ₹200/month (₹300 in Feb) = ₹2,500/year (Maharashtra PT Act)
• Karnataka – Up to ₹24,999/month — Nil (Karnataka PT Act 1976)
• Karnataka – ₹25,000+/month — ₹200/month and ₹300 for February = ₹2,500/year (Karnataka PT Act)
• West Bengal – Up to ₹10,000/month — Nil (West Bengal PT Act 1979)
• ₹10,001 – ₹15,000 — ₹110/month (WB PT Act)
• ₹15,001 – ₹25,000 — ₹130/month (WB PT Act)
• ₹25,001 – ₹40,000 — ₹150/month (WB PT Act)
• Above ₹40,000 — ₹200/month (WB PT Act)
• Gujarat – Up to ₹5,999/month — Nil up to ₹12,000/month (slab consolidated: up to ₹12,000 → Nil; above ₹12,000 → ₹200/month) (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976)
• Gujarat – ₹6,000 – ₹8,999/month — Nil (falls within revised ₹12,000 Nil threshold) (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976)
• Gujarat – ₹9,000 – ₹11,999/month — Nil (falls within revised ₹12,000 Nil threshold) (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976)
• Gujarat – ₹12,000+/month — Above ₹12,000 → ₹200/month (slab start corrected; old slab start was ₹12,000+ which is correct rate but old lower slabs need removal) (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976)
• States that do NOT levy PT — Delhi, Rajasthan, Uttar Pradesh, Haryana, Punjab, Odisha, Goa, Himachal Pradesh, Uttarakhand, Arunachal Pradesh (N/A)

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	India (Republic of India)
Tax	Professional Tax (Profession Tax / PT)
Currency	INR only
Tax year	1 April 2025 -- 31 March 2026 (FY 2025-26 / AY 2026-27)
Constitutional basis	Article 276 of the Constitution of India
Maximum permissible	₹2,500 per annum (Constitutional cap per Article 276(2))
Deductibility	Fully deductible under Section 16(iii) of Income Tax Act, 1961
Skill version	1.0

Core Principle

Professional Tax is a state-level tax levied by state governments and union territories on individuals earning income through employment, trade, profession, or calling. Each state has its own rates, slabs, and administrative rules. The maximum amount any state can levy is ₹2,500 per annum (Constitutional limit).

States That Levy Professional Tax

States That Levy Professional Tax

State / UT	Levies PT?	Administering Authority
Maharashtra	Yes	Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
Karnataka	Yes	Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976
West Bengal	Yes	West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979
Andhra Pradesh	Yes	AP Tax on Professions, Trades, Callings and Employments Act, 1987
Telangana	Yes	Telangana Tax on Professions, Trades, Callings and Employments Act
Tamil Nadu	Yes	Tamil Nadu Tax on Professions, Trades, Callings and Employments Act
Gujarat	Yes	Gujarat State Tax on Professions, Trades, Callings and Employments Act
Madhya Pradesh	Yes	MP Vritti Kar Adhiniyam, 1995
Odisha	Yes	Orissa State Tax on Professions, Trades, Callings and Employments Act
Assam	Yes	Assam Professions, Trades, Callings and Employments Taxation Act
Kerala	Yes	Kerala Municipality Act (local bodies levy)
Bihar	Yes	Bihar Tax on Professions, Trades, Callings and Employments Act
Jharkhand	Yes	Jharkhand Tax on Professions Act
Meghalaya	Yes	Meghalaya Professions Tax Act
Tripura	Yes	Tripura Professions Tax Act
Sikkim	Yes	Sikkim Tax on Professions Act
Delhi	No	--
Rajasthan	No	--
Uttar Pradesh	No	--
Haryana	No	--
Punjab	No	--

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown state of employment	Do not compute -- confirm state
Unknown gross salary / income slab	Do not compute -- obtain salary details
Unknown whether employer deducts PT	Assume employer deduction (most common for salaried)

Section 2 -- State-Wise Rates and Slabs

2.1 Maharashtra

Maharashtra Slabs

Monthly Gross Salary/Wages (INR)	Monthly PT	Annual PT
Up to ₹7,500	Nil	Nil
₹7,501 -- ₹10,000	₹175	₹2,100
Above ₹10,000	₹200 (₹300 for Feb)	₹2,500

• February payment note — The February payment is ₹300 to make the annual total ₹2,500 (11 × ₹200 + 1 × ₹300).
• Who pays — Salaried employees (employer deducts), self-employed professionals and traders (self-assess).
• Enrollment (employer) — Form I (Registration Certificate) -- every employer with PT liability.
• Enrollment (self-employed) — Form II.
• Filing — Monthly payment by employers by the last day of following month.

2.2 Karnataka

Karnataka Slabs

Monthly Gross Salary (INR)	Monthly PT
Up to ₹24,999	Nil
₹25,000 and above	₹200

• Annual maximum — ₹2,400 (₹200 × 12 months).
• Note — Karnataka charges ₹200/month flat for those earning ₹25,000+ per month. This results in ₹2,400/year (below the ₹2,500 Constitutional cap).
• Filing — Employer must deposit by the 20th of the following month. Annual return by 30 April.

2.3 West Bengal

West Bengal Slabs

Monthly Gross Salary (INR)	Monthly PT
Up to ₹10,000	Nil
₹10,001 -- ₹15,000	₹110
₹15,001 -- ₹25,000	₹130
₹25,001 -- ₹40,000	₹150
Above ₹40,000	₹200

• Annual maximum — ₹2,500.
• Filing — Monthly by the 21st of following month. Annual return by 31 May.

2.4 Andhra Pradesh

Andhra Pradesh Slabs

Half-Yearly Gross Salary (INR)	Half-Yearly PT
Up to ₹15,000/month	Nil
₹15,001 -- ₹20,000/month	₹150/month
Above ₹20,000/month	₹200/month (₹200 × 6 = ₹1,250 per half-year)

• Annual maximum — ₹2,500.
• Filing — Monthly by 10th of following month.

2.5 Telangana

Telangana Slabs

Monthly Gross Salary (INR)	Monthly PT
Up to ₹15,000	Nil
₹15,001 -- ₹20,000	₹150
Above ₹20,000	₹200

• Annual maximum — ₹2,500.

2.6 Tamil Nadu

Tamil Nadu Slabs

Half-Yearly Gross Salary (INR)	Half-Yearly PT
Up to ₹21,000/month	Nil
₹21,001 -- ₹30,000/month	₹135/month
₹30,001 -- ₹45,000/month	₹315/month
₹45,001 -- ₹60,000/month	₹690/month
₹60,001 -- ₹75,000/month	₹1,025/month
Above ₹75,000/month	₹1,250/half-year (₹2,500/year cap)

• Annual maximum — ₹2,500.

2.7 Gujarat

Gujarat Slabs

Monthly Gross Salary (INR)	Monthly PT
Up to ₹5,999	Nil
₹6,000 -- ₹8,999	₹80
₹9,000 -- ₹11,999	₹150
₹12,000+	₹200

• Annual maximum — ₹2,500 (adjustment in March).

2.8 Madhya Pradesh

Madhya Pradesh Slabs

Monthly Gross Salary (INR)	Monthly PT
Up to ₹18,750	Nil
₹18,751 -- ₹25,000	₹125
₹25,001 -- ₹33,333	₹167 (₹2,000/year)
Above ₹33,333	₹208 (₹2,500/year)

• Annual maximum — ₹2,500.

Section 3 -- Deductibility Under Income Tax Act

Section 16(iii) -- Deduction from Salary Income

Section 16(iii) Rules

Rule	Detail
Section	16(iii) of the Income Tax Act, 1961
Deduction basis	Allowed in the year of PAYMENT (not accrual)
Cap	No cap on deduction (but PT itself is capped at ₹2,500/year)
For self-employed	Deductible under Section 37(1) as business expenditure
ITR reporting	Shown as deduction from gross salary in Part B of Form 16 / ITR-1

Impact on Tax Computation

Impact on Tax Computation

Step	Computation
Gross Salary	As per employer records
Less: Standard Deduction	₹75,000 (FY 2025-26 under new regime; ₹50,000 under old regime)
Less: Professional Tax paid	Up to ₹2,500 (under old regime; included in standard deduction under new regime)
= Income from Salary	Taxable amount

• New Tax Regime (Section 115BAC) — Under the new regime (default from FY 2023-24), the standard deduction of ₹75,000 covers both the standard deduction and profession tax deduction. Separate Section 16(iii) claim may not be additionally available under new regime. (Section 115BAC)
• Old Tax Regime — Professional tax is separately deductible under Section 16(iii) in addition to the ₹50,000 standard deduction.

Section 4 -- Registration and Compliance

4.1 Employer Obligations

Employer Obligations

Obligation	Detail
Registration	Obtain Profession Tax Registration Certificate (RC) from state authority
Deduction	Deduct PT from employee salary monthly as per slab
Deposit	Remit to state government by prescribed due date
Return filing	File periodic return (monthly/quarterly/annually per state)
Penalty for non-deduction	Varies by state (typically interest at 1-2% per month + penalty)

4.2 Self-Employed / Professional Obligations

Self-Employed / Professional Obligations

Obligation	Detail
Enrollment	Obtain Profession Tax Enrollment Certificate (EC) from state authority
Self-assessment	Calculate PT based on gross income/turnover slab
Payment	Pay annually or as prescribed by state
Due date (Maharashtra)	30 June of each year
Penalty	Interest on late payment + penalty per state rules

4.3 Due Dates by State

Due Dates by State

State	Employer Deposit Due	Return Due
Maharashtra	Last day of following month	Annual: 31 March
Karnataka	20th of following month	Annual: 30 April
West Bengal	21st of following month	Annual: 31 May
Andhra Pradesh	10th of following month	Annual: varies
Gujarat	15th of following month	Annual: 30 September

Section 5 -- Edge Cases

5.1 Multiple Employments

• Multiple Employments — If an individual has multiple employers in the same state, each employer must deduct PT independently. The maximum combined deduction may exceed ₹2,500/year in practice -- the employee can claim refund of excess from the state authority.

5.2 Multi-State Employment

• Multi-State Employment — If an individual works in multiple states (e.g., transferred mid-year), PT is payable in each state for the period of employment in that state. Deduction under Section 16(iii) covers total PT paid across all states.

5.3 Directors

• Directors — Company directors receiving sitting fees or remuneration are liable for PT in the state where the company is registered or where they attend meetings (varies by state).

5.4 Freelancers / Gig Workers

• Freelancers / Gig Workers — Self-employed professionals (doctors, lawyers, CAs, engineers, consultants) must self-enroll and pay PT in the state where they practice. Threshold varies by state.

5.5 Exemptions

Common exemptions across states:

• Parents/guardians of children with permanent disability (some states)
• Members of armed forces (some states)
• Persons above 65 years (some states, e.g., Maharashtra)
• Badli workers in textile industry (Maharashtra)

Section 6 -- Filing Requirements Summary

Filing Requirements Summary

Item	Detail
Employer registration	Mandatory if employees earn above state threshold
Form 16 reporting	PT deducted shown in Part B under Section 16(iii)
ITR disclosure	Professional tax appears as deduction from gross salary
Proof required	Salary slip showing deduction; or PT challan (self-employed)
Records retention	7 years (Income Tax Act record retention period)

Section 7 -- Prohibitions

• NEVER compute without state — NEVER compute professional tax without knowing the STATE of employment/practice
• NEVER exceed cap — NEVER exceed ₹2,500/year for any state (Constitutional maximum)
• NEVER deduct without proof — NEVER deduct PT under Section 16(iii) without evidence of actual payment
• NEVER apply wrong slabs — NEVER apply one state's slabs to another state's employees
• NEVER assume PT in non-levying states — NEVER assume PT applies in states that do not levy it (Delhi, UP, Rajasthan, Haryana, Punjab)
• NEVER double-claim — NEVER double-claim PT deduction under both Section 16(iii) and Section 37(1) for the same amount
• NEVER present as definitive — NEVER present tax calculations as definitive -- always label as estimated

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CA, CMA, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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