Professional tax (PT) is a small line on the payslip that generates outsized confusion because every state does it differently. It is levied by state governments under Article 276 of the Constitution, which caps it at ₹2,500 per year. Employers deduct it from salaries and deposit it; self-employed professionals pay it directly.
States that levy PT
Maharashtra, Karnataka, West Bengal, Gujarat, Andhra Pradesh, Telangana, Tamil Nadu, Madhya Pradesh, Kerala, Odisha, Assam, Meghalaya, Tripura, Sikkim, Bihar, Jharkhand, Chhattisgarh, Manipur, Mizoram, Nagaland, Puducherry.
States with no professional tax
Delhi, Uttar Pradesh, Haryana, Rajasthan, Punjab, Uttarakhand, Himachal Pradesh, Goa, Jammu & Kashmir, Arunachal Pradesh, Chandigarh, and other UTs. If your employee works in these states, deduct nothing.
Monthly slabs (major states)
| State | Monthly salary | PT per month |
|---|---|---|
| Maharashtra (men) | ≤ ₹7,500 / ₹7,501–10,000 / > ₹10,000 | Nil / ₹175 / ₹200 (₹300 in Feb) |
| Maharashtra (women) | ≤ ₹25,000 / > ₹25,000 | Nil / ₹200 (₹300 in Feb) |
| Karnataka | ≤ ₹25,000 / > ₹25,000 | Nil / ₹200 |
| West Bengal | ≤ 10,000 / 10,001–15,000 / 15,001–25,000 / 25,001–40,000 / > 40,000 | Nil / ₹110 / ₹130 / ₹150 / ₹200 |
| Gujarat | ≤ ₹12,000 / > ₹12,000 | Nil / ₹200 |
| Andhra Pradesh & Telangana | ≤ 15,000 / 15,001–20,000 / > 20,000 | Nil / ₹150 / ₹200 |
| Madhya Pradesh | ≤ 18,750 / 18,751–25,000 / 25,001–33,333 / > 33,333 | Nil / ₹125 / ₹167 / ₹208 (₹212 in the last month) |
| Tamil Nadu (half-yearly) | ≤ 21,000 / 21,001–30,000 / 30,001–45,000 / 45,001–60,000 / 60,001–75,000 / > 75,000 | Nil / ₹135 / ₹315 / ₹690 / ₹1,025 / ₹1,250 per half-year |
| Kerala (half-yearly) | slabs from ₹12,000 half-yearly income | ₹120 – ₹1,250 per half-year |
Slabs change with state budgets; the professional tax calculator is kept current and computes annual totals including the February top-up.
Employer duties
- Register for a PTRC (Professional Tax Registration Certificate) within 30 days of hiring your first employee in a PT state; the business itself pays an annual PTEC (enrolment) amount — ₹2,500 in Maharashtra.
- Deduct monthly from salaries as per slab and show it on the wage slip — the wage slip generator has a PT line.
- Deposit and file — monthly in Maharashtra (by the last day of the month) if annual liability exceeds ₹1 lakh, else annually; monthly in Karnataka (by the 20th); quarterly/annually elsewhere.
- Multi-state employees: PT is based on where the employee works, not where the company is registered. Remote employees in a PT state require you to register there.
Employee side
- PT paid is deductible from salary income under Section 16(iii) in the old regime.
- Exemptions in several states: senior citizens above 65, persons with disabilities, parents of disabled children, members of the armed forces.
- Self-employed (doctors, CAs, lawyers, traders) pay the annual PTEC amount directly (₹2,500 in most states).
Penalties
Late registration and late payment attract interest (1.25–2% per month) and penalties (10% of tax or fixed amounts). Small, but they compound and are a common audit finding.
FAQ
Is professional tax deducted on gross or basic?
On gross monthly salary (including allowances) in most states.
Why is PT ₹300 in February in Maharashtra?
₹200 × 11 + ₹300 = ₹2,500, the constitutional annual maximum.
Do I pay PT in two states if I moved mid-year?
You pay in each state for the months you worked there, per that state's slab. Employers should handle it via payroll.
Is PT applicable to interns and contract workers?
Employees on payroll, yes. Interns on stipend are usually exempt below the threshold; contractors pay PTEC themselves if applicable.