Professional Tax

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What is Professional Tax?

The tax on pay required by the state government on people is called Professional tax. Regardless of whether you are a professional, worker or dealer, all are needed to pay professional tax according to the predefined edge by the state government. In India, not all states demand professional tax and the tax section or cutoff points likewise fluctuates with each state.

professional tax

Despite the fact that according to Article 246 of the Indian Constitution, the taxes on pay can be exacted or make laws in its regard comes just inside the force of Parliament. Notwithstanding, professional tax is one such tax on pay that is gathered by the state government. The State Government can likewise make laws with respect to professional tax. The most extreme cutoff for professional tax has been set at ₹ 2,500 every year for a person. While computing annual tax, the professional tax will be deducted from the all-out taxable pay.

Professional Tax Slab Rates

The professional tax chunk in each express that demands this tax is extraordinary. A few states and association regions don’t charge this tax. In states where professional tax is charged, it is expected for instalment in 12 equivalent regularly scheduled payments. Article 276 of the Indian Constitution which gives State Governments the ability to charge professional tax has additionally put the greatest roof of ₹ 2,500 for any person.

Each state has its own section for charging professional tax. Following is the piece in a portion of the states, where P tax is material:

Professional Tax Slab for Karnataka

Monthly Income (₹) Tax Per Month (₹)
Up to ₹ 15,000 NIL
More than ₹ 15,000 ₹ 200

Professional Tax Slab for Andhra Pradesh

Monthly Income (₹) Tax Per Month (₹)
Up to ₹ 15,000 NIL
From ₹ 15,001 to ₹ 20,000 ₹ 150
Above ₹ 20,000 ₹ 200

Professional Tax Slab for Madhya Pradesh

Monthly Income (₹) Tax Per Month (₹)
Up to ₹ 1.50 Lakh NIL
From ₹ 1.50 Lakh to ₹ 1.80 Lakh ₹ 125
Above ₹ 1.80 Lakh ₹ 212

Professional Tax Slab for Gujarat

Monthly Income (₹) Tax Per Month (₹)
Up to ₹ 5,999 NIL
From ₹ 6,000 to ₹ 8,999 ₹ 80
From ₹ 9,000 to ₹ 11,999 ₹ 150
₹ 12,000 and above ₹ 200

Professional Tax Slab for Maharashtra

Monthly Income (₹) Tax Per Month (₹)
For Men Upto ₹ 7,500 NIL
For Women Upto ₹ 10,000 NIL
For Men From ₹ 7,501 to ₹ 10,000 ₹ 175
Above ₹ 10,000 ₹ 200 (In February – ₹ 300)

Professional Tax Slab for West Bengal

Monthly Income (₹) Tax Per Month (₹)
Up to ₹ 8,500 NIL
From ₹ 8,501 to ₹ 10,000 ₹ 90
From ₹ 10,001 to ₹ 15,000 ₹ 110
From ₹ 15,001 to ₹ 25,000 ₹ 130
From ₹ 25,001 to ₹ 40,000 ₹ 150
Above ₹ 40,000 ₹ 200

Professional Tax Slab for Odisha

Monthly Income (₹) Tax Per Month (₹)
Up to ₹ 5,000 NIL
From ₹ 5,001 to ₹ 6,000 ₹ 30
From ₹ 6,001 to ₹ 8,000 ₹ 50
From ₹ 8,001 to ₹ 10,000 ₹ 75
From ₹ 10,001 to ₹ 15,000 ₹ 100
From ₹ 15,001 to ₹ 20,000 ₹ 150
Above ₹ 20,000 ₹ 200

How to pay Professional Tax?

Professional tax can be paid online on the professional tax site of the separate state. Professional tax should be paid by the most recent day of the month. E-documenting is obligatory on the off chance that you are paying tax month to month. The important strides to make the instalment for professional tax for each state is pretty much comparable.

Who is responsible for collecting and paying professional tax?

The assortment of Professional tax is finished by the corpora Tax Department of a state. The tax gathered is moved to the assets of the civil organization.

With regards to the instalment of professional tax, at that point for representatives, the tax is deducted and paid by the business. In any case, businesses, regardless of whether being an organization, association firm or sole owner, is additionally carrying on a calling/exchange. In this manner, they are likewise needed to pay professional tax according to the limit indicated by the state government. Since businesses deduct and make good on tax, they are likewise needed to get both a professional tax enlistment authentication just as professional tax enrolment testament.

Consultants are likewise needed to get themselves enlisted according to the financial limit determined by the state government. Nonetheless, different state governments have additionally characterized situations in which case the professional tax is excluded. For instance, professional tax is absolved for watchmen or guardians of visually impaired individuals.

Consequences of violation of professional tax regulation

The punishment or late charge or interest for the late instalment of professional tax fluctuates with each State. In addition, punishments can likewise be imposed for non-enlistment. Alongside a punishment for late instalment, there is likewise a punishment for the late recording of return.

How to File a P Tax Return?

The technique to document P tax returns for each state is pretty much comparable. Since the instalment is being made each month, the return likewise should be presented every month. Alongside return, you additionally need to outfit the instalment confirmation that the tax was submitted before the due date. For people, professional tax must be paid every year.


What is a professional tax and how is it calculated?

Professional tax is the tax on income levied by the State Government on professionals, employees and traders. It is calculated based on the predetermined slab as specified by the respective state or union territory.

How do I get a professional tax certificate?

You can get the professional tax certificate by registering for it on the professional tax website of your respective state.

What is the rule of professional tax?

The maximum amount of professional tax that can be levied on a person in a financial year is limited to ₹ 2,500.

Why is professional tax deducted?

Employers deduct professional tax from the salary or wages of their employees and submit it to the required state authorities.

Who is liable for professional tax?

Any person earning income within the state in which professional tax is applicable needs to pay it to the state authorities and also get itself registered under the Professional Tax.