Use this skill whenever asked about Indian professional tax (profession tax). Trigger on phrases like "professional tax India", "profession tax", "state professional tax", "Maharashtra professional tax", "Karnataka professional tax", "West Bengal professional tax", "PT registration", "PT return", "Section 16(iii)", "profession tax deduction", or any question about professional tax obligations, rates, registration, or payment in India. This skill covers state-level professional tax rates and slabs for major states, deductibility under Income Tax Act, registration and filing requirements, and employer obligations. ALWAYS read this skill before touching any Indian professional tax work.
Accountant-reviewed general reference. Reviewed by Mayur Deokaras reference material, not for your specific facts. Don't file, pay, or take a position on it without a professional reviewing your situation.
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Confirm the state and whether it levies PT
Identify the state where each employee works, or where the professional or entity practises. PT is a state-level levy, so fix the state first and never compute without it. Check whether that state levies PT at all; several states and union territories (for example Delhi, Rajasthan, Uttar Pradesh, Haryana, Punjab) do not.
Watch for: Never assume PT in a non-levying state, and never apply one state's slabs to another state's people.
Constitution of India, Art. 276; the relevant state Professional Tax Act
Register: obtain PTEC and PTRC
Register with the state PT authority. Obtain a PTRC (Profession Tax Registration Certificate) to deduct and remit PT for employees, and a PTEC (Profession Tax Enrollment Certificate) for the entity's or proprietor's own PT liability. In Maharashtra the registration is Form I and enrollment is Form II. Employer registration is mandatory where employees earn above the state threshold.
Watch for: Employers deduct via PTRC; the entity or self-employed person pays its own PT via PTEC.
The relevant state Professional Tax Act (for example Maharashtra 1975, Karnataka 1976, West Bengal 1979)
Every figure is drawn from this Tax Guide and cited to its source.
Maximum per annum
₹2,500Constitution 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/monthMaharashtra PT Act
Above ₹10,000
₹200/month (₹300 in Feb) = ₹2,500/yearMaharashtra PT Act
Karnataka – Up to ₹24,999/month
NilKarnataka 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
NilWest Bengal PT Act 1979
₹10,001 – ₹15,000
₹110/monthWB PT Act
₹15,001 – ₹25,000
₹130/month
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.
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 |
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
| 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
| 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) |
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 |
Karnataka Slabs
| Monthly Gross Salary (INR) | Monthly PT |
|---|---|
| Up to ₹24,999 | Nil |
| ₹25,000 and above | ₹200 |
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 |
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) |
Telangana Slabs
| Monthly Gross Salary (INR) | Monthly PT |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 -- ₹20,000 | ₹150 |
| Above ₹20,000 | ₹200 |
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) |
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 |
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) |
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
| 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 |
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) |
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 |
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 |
Common exemptions across states:
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) |
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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Review status
Accountant-reviewed
Reviewed by a named licensed practitioner against the stated sources, as general reference material.
Accountant-reviewed
Reviewed by Mayur Deokar · 6 June 2026
A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.
View review record →Other India computations in the OpenAccountants Tax Library.
Map each employee's gross salary to the state slab
For each employee, take gross monthly salary and read the PT off that state's slab table. Apply only the slab table for the employee's own state. If the state or salary is unknown, do not compute; obtain the details first.
Watch for: Use only the state-specific slab; slabs change by amendment, so confirm the current-year slab with the state authority.
The relevant state Professional Tax Act
Deduct PT from salary each month
Deduct the slab amount from the employee's salary each month, applying the February top-up where the state uses a higher February figure to reach its annual total (for example Maharashtra and Karnataka bill a higher February month). Record the deduction on the payslip and in Part B of Form 16.
Watch for: Deduct at source monthly; the deduction shown must equal PT actually withheld.
Deposit and file the state PT return by the due date
Remit the collected PT to the state government and file the periodic return by that state's due date, which varies by state (for example Maharashtra last day of the following month, Karnataka 20th, West Bengal 21st). Self-employed enrollees pay on the state's schedule (Maharashtra: 30 June annually).
Watch for: Late deposit attracts interest (typically 1-2 percent per month) plus penalty under state rules; file on the state's own calendar.
The relevant state Professional Tax Act
Hold the annual total under the constitutional cap
Cap total PT at 2,500 rupees per person per state for the year, the maximum any state may levy under Article 276(2). Check that the year's slab deductions plus any February top-up do not exceed it for any state.
Watch for: Never exceed the annual cap for any state; where multiple employers over-deduct in one state, the excess is refundable by the state authority.
Constitution of India, Art. 276(2)
Claim s 16(iii), then deliver the working paper and offer review
Reflect PT actually paid as a deduction from salary income under s 16(iii) of the Income-tax Act 1961 (old regime; under the new regime the standard deduction subsumes it, so a separate claim may not be available). For the self-employed, PT is a business expense under s 37(1). Then compile the state, slab mapping, monthly deductions, annual total against the cap, and the deduction into a working paper and offer Mayur Deokar a review before filing.
Watch for: Deduct only PT actually paid, in the year of payment, with proof; never double-claim under both s 16(iii) and s 37(1); label figures as estimates, not a filed return.
Income-tax Act 1961, s 16(iii)
What Mayur checks before signing off
Ready to work through your own numbers? Add this Guide to your AI and it takes it from here, then routes the finished paper for an accountant to review.
Add to your AI₹25,001 – ₹40,000
₹150/monthWB PT Act
Above ₹40,000
₹200/monthWB 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, PunjabN/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/monthMaharashtra PT Act
Above ₹10,000
₹200/month (₹300 in Feb) = ₹2,500/yearMaharashtra PT Act
Karnataka – Up to ₹24,999/month
NilKarnataka PT Act 1976
Karnataka – ₹25,000+/month
₹200/month and ₹300 for February = ₹2,500/yearKarnataka PT Act
West Bengal – Up to ₹10,000/month
NilWest Bengal PT Act 1979
₹10,001 – ₹15,000
₹110/monthWB PT Act
₹15,001 – ₹25,000
₹130/monthWB PT Act
₹25,001 – ₹40,000
₹150/monthWB PT Act
Above ₹40,000
₹200/monthWB 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 PradeshN/A
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 |
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
| 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) |
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.
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.
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.
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.
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.
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.
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).
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 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
| 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.
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) |
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 |
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 |
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.
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.
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).
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.
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) |
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
Rendered from the canonical facts model · method attested Jun 6, 2026 (covers the method, not the currency of individual figures). General reference only — confirm with a qualified professional before acting.
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