Professional Tax is a state level tax levied by State Governments. It is applied to individuals, who is earning by way of salary income or practising a profession such as CA, CS, lawyer, doctor, architect, engineer etc.
Currently, this tax is applicable in Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Sikkim, Tamil Nadu, Telangana, Tripura & West Bengal. The amount of professional tax differ from one state to another but it has an upper limit of Rs. 2500 per annum per individual.
Who is Responsible to deduct/pay Professional Tax
In case of salaried Individuals, the professional tax is liable to be deducted by the employer from the salary and to deposit the same to the state government. In case of practising professionals, the tax is liable to be deposited by the person himself. Professional tax is required to be deducted and deposited to the state government on regular basis (generally monthly or quarterly) depending on the state laws.
Note: – Professional tax deducted from the salary of employee is allowed as a deduction under section 16(iii) of Income Tax Act, 1961 at the time of computing income under the head salary. The limit of deduction is Rs 2,500 per annum.
How to register for professional tax
- Apply for the Registration Certificate to your local state’s tax commercial department in the prescribed form.
- The registration certificate has to be obtained within specified days of employing staff which is generally 30 days.
- A separate application needs to be submitted if you have more than one places of business.
- Foreign employees are not liable to pay professional tax in India.
Penalties for non- compliance
A penalty may be imposed by state government: –
- if you delay in obtaining the Registration certificate
- for a delay in making the payment
- for a delay in filing return
States & Union Territories where Professional Tax is not applicable
| Andaman & Nicobar | Arunachal Pradesh |
| Chandigarh | Chhattisgarh |
| Dadra & Nagar Haveli | Daman & Diu |
| Delhi | Haryana |
| Himachal Pradesh | Jammu & Kashmir |
| Lakshadweep | Nagaland |
| Punjab | Rajasthan |
| Uttaranchal | Uttar Pradesh |
Professional Tax Slabs in the Various States
Since different states levy professional tax as per different slab rates. The professional tax slab rates for all the states in India are given below.
1) Andhra Pradesh
| Monthly salary | Tax (Per Month) |
| Upto 15000 | Nil |
| 15001 to 20000 | 150 |
| Above 20,000 | 200 |
2) Assam
| Monthly salary | Tax (Per Month) |
| Upto 10000 | Nil |
| 10000 to 15000 | 150 |
| 15001 to 24999 | 180 |
| 25000 and above | 208 |
3) Bihar
| Monthly salary | Tax (Per Month) |
| Upto 25000 | Nil |
| 25001 to 41666 | 83.33 |
| 41667 to 83333 | 166.67 |
| 83334 and above | 208.33 |
4) Goa
| Monthly salary | Tax (Per Month) |
| Upto 15000 | Nil |
| 15001 to 25000 | 150 |
| 25001 and above | 200 |
5) Gujarat
| Monthly salary | Tax (Per Month) |
| Upto 6000 | Nil |
| 6000 to 9000 | 80 |
| 9000 to 12000 | 150 |
| 12000 and above | 200 |
6) Jharkhand
| Monthly salary | Tax (Per Month) |
| Upto 25000 | Nil |
| 25001 to 41666 | 100 |
| 41667 to 66666 | 150 |
| 66667 to 83333 | 175 |
| 83334 and above | 208 (212 in February) |
7) Karnataka
| Monthly salary | Tax (Per Month) |
| Up to 15,000 | NIL |
| More than 15,000 | 200 |
8) Kerala
| Monthly salary | Tax (Half Yearly) |
| Upto 1999 | Nil |
| 2000 to 2999 | 120 |
| 3000 to 4999 | 180 |
| 5000 to 7499 | 300 |
| 7500 to 12499 | 600 |
| 12500 to 16666 | 750 |
| 16667 to 20833 | 1000 |
| 20834 and above | 1250 |
9) Madhya Pradesh
| Annual salary | Tax (Per Month) |
| Upto 1.5 Lakhs | Nil |
| 1.5 lakhs to 1.8 lakhs | 125 |
| 1.8 Lakhs and above | 208 (212 for February) |
10) Maharashtra
| Monthly salary | Tax (Per Month) |
| Upto 7500 for Men | NIL |
| Upto 10000 for Women | NIL |
| 7500 to 10000 | 175 |
| 10000 and above | 200 (February-300) |
11) Meghalaya
| Annual salary | Tax (Annual) |
| Upto 50000 | Nil |
| 50001 to 75000 | 200 |
| 75001 to 100000 | 300 |
| 100001 to 150000 | 500 |
| 150001 to 200000 | 750 |
| 200001 to 250000 | 1000 |
| 250001 to 300000 | 1250 |
| 300001 to 350000 | 1500 |
| 350001 to 400000 | 1800 |
| 400001 to 450000 | 2100 |
| 450001 to 500000 | 2400 |
| 500001 and above | 2500 |
12) Orissa
| Monthly salary | Tax (Per Month) |
| Upto 5000 | Nil |
| 5001 to 6000 | 30 |
| 6001 to 8000 | 50 |
| 8001 to 10000 | 75 |
| 10001 to 15000 | 100 |
| 15001 to 20000 | 150 |
| Above 20000 | 200 |
13) Sikkim
| Monthly salary | Tax (Per Month) |
| Upto 20000 | Nil |
| 15001 to 30000 | 125 |
| 30001 to 40000 | 150 |
| 40001 and more | 200 |
Note :- Different rates are also announced for various professional and business.
14) Tamil Nadu
| Half Yearly salary | Tax ( Per 6 Month) |
| Upto 21000 | Nil |
| 21001 to 30000 | 100 |
| 30001 to 45000 | 235 |
| 40001 to 60000 | 510 |
| 60001 to 75000 | 760 |
| 75001 and above | 1095 |
15) Telangana
| Monthly salary | Tax (Per Month) |
| Upto 15000 | Nil |
| 15001 to 20000 | 150 |
| 20001 and above | 200 |
16) Tripura
| Monthly salary | Tax (Half Yearly) |
| Upto 5000 | Nil |
| 5001 to 7000 | 420 |
| 7001 to 9000 | 720 |
| 9001 to 12000 | 840 |
| 12000 to 15000 | 1140 |
| 15001 and above | 1248 |
17) West Bengal
| Monthly salary | Tax (Per Month) |
| Upto 8500 | Nil |
| 8501 to 10000 | 90 |
| 10001 to 15000 | 110 |
| 15001 to 25000 | 130 |
| 25001 to 40000 | 150 |
| More than 40000 | 200 |
