Professional Tax

Professional Tax

• Professional tax is a tax on everyone who earns money, no matter what they do. It is paid to the state government, and the amount of tax you pay depends on how much money you make.

• Professional tax is not just for professionals like doctors and lawyers. It applies to everyone, including salaried employees, freelancers, and business owners, subject to income exceeding the monetary threshold if any (depends upon state to state).

Who levies Professional Tax?

• State governments have the right to levy and collect professional tax under Article 276(2) of the Indian Constitution. In simpler terms, only state governments can impose and collect professional tax.

• Employers deduct professional tax from their employees’ salaries and pay it to the state government. Self-employed people must pay their own professional tax.

Registration

• Employers must register for a professional tax certificate within 30 days of hiring staff.

• Employers must register for professional tax in each state where they have employees.

Employer’s liability

• Employers are responsible for deducting and paying professional tax to the state government on behalf of their employees, subject to any monetary threshold set by the state.

• Employers (companies, partnerships, sole proprietorships, etc.) must also pay professional tax on their own businesses, subject to any monetary threshold set by the state. [PT Enrolment]

• Employers with multiple offices may need to register for professional tax in each state separately, depending on the state’s laws.

• Freelancers must also register for professional tax, subject to any monetary threshold set by the state.

Deposit of Amount Deducted

• Professional tax is collected by the state’s commercial tax department and goes to the municipal corporation.

• Employers must pay professional tax to the state treasury through a bank challan, unless the designated authority has declared another place of payment.

Professional Tax in Various States

Following table shows Professional Tax Applicability in various Indian States. Deduction amount, Due Date, Penalty, etc will be different from state to state. Refer to details of your state to understand important features of Professional Tax.

Professional tax in Andhra Pradesh

• Professional tax in Andhra Pradesh is governed by the Andhra Pradesh Tax on Professions, Trades, Callings, and Employment Act, 1987.

• Website: https://myprofessiontax.apct.gov.in/ptax/

• Due date for monthly professional tax remittance and filing of return: 10th of every month

• Professional tax slab rates in Andhra Pradesh for salary/wage earners:

• Tax deduction period: Monthly

Professional Tax Rates in Andhra Pradesh
Monthly Salary (INR)	PT Amount (per month)
Up to Rs. 15,000	₹ 0.00
Between Rs. 15,001 To Rs. 20,000	₹ 150.00
Above Rs. 20,001	₹ 200.00

Professional tax in Assam

• Professional tax in Assam is governed by the Assam Professions, Trades, Callings, and Employment Taxation Act, 1947.

• Website: https://comtax.assam.gov.in/frontimpotentdata/assam-professional-tax

• Due date for monthly professional tax remittance and filing of return: 28th of every month

• Professional tax slab rates in Assam for salary/wage earners:

• Tax deduction period: Monthly

Professional tax in Bihar

• Professional tax in Bihar is governed by the Bihar State Tax on Professions, Trades, Callings, and Employment Act, 2011.

• Website: https://www.biharcommercialtax.gov.in/bweb/

• Due date for monthly professional tax remittance is 15th of the following month and annual returns is 15th of November every year.

• Professional tax slab rates in Bihar for salary/wage earners:

• Tax deduction period: Yearly

Professional tax in Chhattisgarh

• Professional tax in Chhattisgarh is levied under “The Chhattisgarh Vritti Kar Adhiniyam, 1995”

• Website: https://comtax.cg.nic.in/index.htm

• The due date for professional tax in Chhattisgarh is September 30th for individuals registered before September 30th, and August 31st for individuals registered after August 31st.

• Professional tax slab rates in Chhattisgarh for salary/wage earners:

• Tax deduction period: Monthly

Class of Taxpayers (Salary and Wage Earners Per Annum)	Payable Tax Rate (Per Annum)
Earning a salary up to ₹ 40,000	Nil
Earning a salary between ₹ 40,000 to ₹ 50,000	₹ 360
Earning a salary between ₹ 50,000 to ₹ 60,000	₹ 720
Earning a salary between ₹ 60,000 to ₹ 80,000	₹ 1,080
Earning a salary between ₹ 80,000 to ₹ 1,00,000	₹ 1,200
Earning a salary between ₹ 1,00,000 to ₹ 1,50,000	₹ 1,440
Earning a salary between ₹ 1,50,000 to ₹ 2,00,000	₹ 1,800
Earning a salary between ₹ 2,00,000 to ₹ 2,50,000	₹ 2,160
Earning a salary between ₹ 2,50,000 to ₹ 3,00,000	₹ 2,280
Earning a salary above ₹ 3,00,000	₹ 2,400

Professional tax in Gujarat

• Professional tax in Gujarat is levied under “The Gujarat Panchayats, Municipal Corporations And State Tax On Professions, Traders, Callings And Employments Act, 1976.”

• Website: https://commercialtax.gujarat.gov.in/

• Employers with more than 20 employees: The professional tax must be paid within 15 days of the end of the month.

• Employers with less than 20 employees: The professional tax can be paid on a monthly or quarterly basis. If the employer chooses to pay every quarter, the payment must be made within 15 days of the end of the quarter.

• The quarterly due dates for professional tax in Gujarat are:

1. July 15th (for the quarter April to July)
2. October 15th (for the quarter July to September)
3. January 15th (for the quarter October to December)
4. April 15th (for the quarter January to March)

• Tax deduction period: Monthly

Professional tax in Jharkhand

• Professional tax in Jharkhand is levied under “The Jharkhand State Tax on Professions, Trades, Callings and Employment Act 2011.”

• Website: https://esevactax.jharkhand.gov.in/Portal🔗/🔗

• The professional tax payment due date in Jharkhand depends on the registration date of the assessee.

1. If professional tax registration is done before May 31 of a year, then the PT payment for each quarter by June 30.
2. If professional tax registration is done after May 31 of a year, then the PT payment must be made within one month.
3. In other all cases, the PT payment must be made within 15 days of a month after a quarter ends.

• The professional tax annual returns due date in Jharkhand is January 31st of the following year.

• Professional tax slab rates in Jharkhand for salary/wage earners:

• Tax deduction period: Quarterly

Professional tax in Karnataka

• Professional tax in Karnataka is levied under “The Karnataka Tax on Professions, Trades, Callings and Employment Act 1976.”

• Website: https://pt.kar.nic.in.

• The monthly professional tax payment due date in Karnataka is the 20th of the month for employees and 30th of the month for employers.

• The annual professional tax returns due date in Karnataka is May 31st of the following year.

• Professional tax slab rates in Karnataka for salary/wage earners:

• Tax deduction period: Monthly

Professional tax in Kerala

• Professional tax in Kerala is levied under “Kerala Municipality Act, 1994” under the Kerala Government.

• Website: https://professiontax.lsgkerala.gov.in/

• The due date for payment of professional tax in Kerala is August 31st for the first half of the year i.e. April to September and February 28th for the second half of the year i.e. October to March.

• Professional tax slab rates in Kerala for salary/wage earners:

• Tax deduction period: Every six months

Professional tax in Madhya Pradesh

• Professional tax in Madhya Pradesh is levied under “Madhya Pradesh Vritti Kar Adhiniyam, 1995”.

• Website: https://mptax.mp.gov.in/mpvatweb/

• For entities that enroll before or on May 31st, the due date is June 30th of that year.
• For entities that enroll after May 31st, the professional tax payment is due within one month of the date of enrollment.

• Professional tax slab rates in Madhya Pradesh for salary/wage earners:

• Tax deduction period: Monthly

Professional tax in Maharashtra

Professional tax in Maharashtra is levied under “The Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975.”

• Website: https://www.mahagst.gov.in/en

• Monthly payment cum returns must be filed by the end of the following month in which the liability arises.

• Professional tax annual returns must be filed by March 31st in Maharashtra.

• PTRC stands for Professional Tax Registration Certificate. This allows the employer to deduct and deposit professional tax from the salary of its employees and deposit it to government.

• PTEC stands for Professional Tax Enrolment Certificate. PTEC allows companies, directors, professionals, and sole proprietors to pay professional tax.

• PTEC liability for the current financial year must be discharged by June 30th of each year.

• Professional tax slab rates in Maharashtra for salary/wage earners:

• Tax deduction period: Monthly

Professional tax in Manipur

• Professional tax in Manipur is levied under “Manipur Professions, Trades, Callings and Employments Taxation (Eighth Amendment ) Act, 2012”

• Website: https://professionaltax.mn.gov.in🔗/🔗

• Professional tax is collected on a yearly basis in Manipur. Employers should pay their dues before the 30th of March every year.

• Entities that enroll after May 31st of a given year must file their annual professional tax return within one month of the enrollment date.

• Manipur levies the professional tax at Rs. 208 for 11 months and Rs. 212 for the last month

• Professional tax slab rates in Manipur for salary/wage earners:

• Tax deduction period: Yearly

Professional tax in Meghalaya

Professional tax in Meghalaya is levied under “The Meghalaya Professions, Trades, Callings And Employments Taxation Act, 1947”

• Website: http://megvat.gov.in/🔗

• Professional tax remittance and monthly returns must be filed by the 28th of each month.

• Professional tax slab rates in Meghalaya for salary/wage earners:

• Tax deduction period: Monthly

Professional tax in Mizoram

• Professional tax in Mizoram is levied under “The Mizoram Professions, Trades, Callings and Employments Taxation Act, 1995”

• Website: http://zotax.nic.in🔗/🔗

• Professional tax in Mizoram is collected on a yearly basis by the state’s tax department. Payment should be made before the 30th of June every year.

• Professional tax slab rates in Mizoram for salary/wage earners:

• Tax deduction period: Monthly

Professional tax in Odisha

• Professional tax in Odisha is levied under “The Orissa State Tax On Professions, Trades, Callings And Employments Act, 2000”

• Website: https://odishatax.gov.in🔗/#🔗

• Employers who deduct professional tax from their employees’ salaries must file a monthly return on or before the last day of the next month.

• Employers in Odisha must file a consolidated professional tax return for all of their employees by March 30th of each year.

• Professional tax slab rates in Odisha for salary/wage earners:

• Tax deduction period: Monthly

Professional Rates
Annual Salary (INR)	PT Amount (per annum)
Upto 1,60,000	₹ 0.00
Between 1,60,001 to 3,00,000	₹ 1500.00
Above 3,00,001	₹ 2500.00

Professional tax in Puducherry

• Professional tax in Puducherry is levied under “The Puducherry Village And Commune Panchayats Act, 1973, The Puducherry Municipalities Act, 1973″

• Website: http://🔗law.puducherry.gov.in/code3.pdf🔗

• Professional tax is payable on a half-yearly basis, and the due dates for payment are as follows:

1. Half-year ending 30th June: 31st July
2. Half-year ending 31st December: 31st January

• Professional tax slab rates in Puducheery for salary/wage earners:

• Tax deduction period: Every six months

Professional Rates
Half-yearly Salary (INR)	PT Amount (Half-yearly)
Upto 99,999	₹ 0.00
Between 1,00,000 To 2,00,000	₹ 250.00
Between 2,00,001 To 3,00,000	₹ 500.00
Between 3,00,001 To 4,00,000	₹ 750.00
Between 4,00,001 To 5,00,000	₹ 1000.00
Above 5,00,001	₹ 1250.00

Professional tax in Sikkim

• Professional tax in Sikkim is levied under “The Sikkim Tax On Professions, Trades, Callings And Employments Act, 2006”

• Website: http://www.sikkimtax.gov.in🔗/🔗

• Employers registered under the Act should remit tax every quarter.
• Professional tax deducted during the first quarter of the year should be paid before the 31st of July.
• For the second, third, and fourth quarters, the deadlines to pay the tax are the 31st of October, the 31st of January, and the 30th of April respectively.

• Professional tax slab rates in Sikkim for salary/wage earners:

• Tax deduction period: Monthly

Professional Rates
Monthly Salary (INR)	PT Amount (per month)
Upto 20,000	₹ 0.00
Between 20,001 To 30,000	₹ 125.00
Between 30,001 To 40,000	₹ 150.00
Above 40,001	₹ 200.00

Professional tax in Tamil Nadu

• Professional tax in Tamil Nadu is levied under “The Tamil Nadu Municipal Laws (Second Amendment) Act, 1998”

• Website: https://🔗erp.chennaicorporation.gov.in/e-portal/login.do🔗

• For salaries paid between April and September, the last date to remit professional tax is the 30th of September.
• For salaries paid from October to March, the deadline to remit is the 31st of March.

• Professional tax slab rates in Tamil Nadu for salary/wage earners:

• Tax deduction period: Every six months

Professional Rates
Half-yearly Salary (INR)	PT Amount (half-yearly)
Upto 21,000	₹ 0
Between 21,001 To 30,000	₹ 100.00
Between 30,001 To 45,000	₹ 235.00
Between 45,001 To 60,000	₹ 510.00
Between 60,001 To 75,000	₹ 760.00
Above 75,001	₹ 1095.00

Professional tax in Telangana

• Professional tax in Telangana is levied under “The Telangana Tax On Professions, Trades, Callings And Employments Act, 1987”

• Website: http://www.tgct.gov.in🔗

• The due date for remitting PT is the 10th of the month following the month for which the PT is being remitted.
• The due date for filing a return of PT is the 20th of the month following the month for which the return is being filed.

• Professional tax slab rates in Telangana for salary/wage earners:

• Tax deduction period: Monthly

Professional Rates
Monthly Salary (INR)	PT Amount (per month)
Up to Rs. 15,000	₹ 0.00
Between Rs. 15,001 To Rs. 20,000	₹ 150.00
Above Rs. 20,001	₹ 200.00

Professional tax in Tripura

• Professional tax in Tripura is levied under “The Tripura Professions, Trades, Callings And Employments Taxation Act, 1997”

• Website: https://ptax.tripura.gov.in🔗/🔗

• For an enrolled person, Professions Tax should be paid on or before 30th September of the same year for which tax is due.

• In case if you have enrolled after 31st day of August of a year, you will pay the tax within one month of the date of enrolment of that year.

• Professional tax slab rates in Tripura for salary/wage earners:

• Tax deduction period: Monthly

Professional Rates
Salary (INR)	PT Amount	Remarks
Upto 7,500	₹ 0.00	Nil
Between 7,501 To 15,000	₹ 1800.00	INR 150 Per Month
Above 15,001	₹ 2496.00	INR 208 Per Month

Professional tax in West Bengal

• Professional tax in West Bengal is levied under “The West Bengal State Tax On Professions, Trades, Callings And Employments Act, 1979”

• Website: http://wbprofessiontax.gov.in/

• Employers in the state of West Bengal should pay professional tax once every financial year. The due date for the payment is on or before the 31st of July within the same year.

• Professional tax slab rates in West Bengal for salary/wage earners:

• Tax deduction period: Monthly

Professional Rates
Monthly Salary (INR)	PT Amount (per month)
Upto 8,500	₹ 0.00
Between 8,501 To 10,000	₹ 0.00
Between 10,001 To 15,000	₹ 110.00
Between 15,001 To 25,000	₹ 130.00
Between 25,001 To 40,000	₹ 150.00
Above 40,001	₹ 200.00

Important points on Professional Tax in India

• Professional Tax (PT) is a tax levied by state governments in India on individuals employed in various professions. It is a direct tax that is imposed on the income earned from professional activities.

• The right to levy Professional Tax is granted to state governments under Article 276(2) of the Constitution of India. Each state has its own Professional Tax Act or rules that define the scope of the tax, the rates applicable, and the procedures for collection and payment.

• Individuals who are liable to pay Professional Tax should register with the relevant state tax authority and obtain a Professional Tax Registration Number (PTRN).

• Professional Tax returns must be filed regularly, typically on a quarterly or annual basis, depending on the state’s requirements.

• Employers are responsible for deducting Professional Tax from their employees’ salaries and submitting the collected tax to the state tax authority.

• Non-compliance with Professional Tax regulations can lead to penalties, interest charges, and legal action.