Quick Answer: Professional tax is a state-level tax on salaried employees and professionals. Maximum professional tax is ₹2,500 per year per person (constitutional cap). Key state slabs: Maharashtra — ₹200/month for salary ₹10,000–24,999, ₹300 in February; Karnataka — ₹200/month for salary >₹15,000; West Bengal — ₹110/month for salary >₹15,000. Professional tax paid is deductible under Section 16(iii) of Income Tax Act.
Professional Tax — State-by-State Guide
Professional Tax is a state tax, and not all states in India levy it. States that do have their own slabs and rates. The Constitution caps Professional Tax at ₹2,500 per year. Employers must register for Professional Tax in the states where they have employees, and deduct PT from salary and deposit it with the state authority.
PT Rates for Major States
| State | Monthly Salary | Monthly PT |
|---|---|---|
| Maharashtra | ₹7,500–₹10,000 | ₹175 |
| Maharashtra | Above ₹10,000 | ₹200 (₹300 in Feb) |
| Karnataka | ₹15,000–₹24,999 | ₹150 |
| Karnataka | Above ₹25,000 | ₹200 |
| West Bengal | ₹8,501–₹10,000 | ₹90 |
| West Bengal | Above ₹40,000 | ₹200 |
| Andhra Pradesh | Above ₹20,000 | ₹200 |
Frequently Asked Questions
The following states do NOT levy Professional Tax: Delhi, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana (repealed in 1993), Himachal Pradesh, Bihar, Jharkhand, Goa, and many North-Eastern states. Employees working in these states have no PT deduction.
Yes. In states where PT applies, self-employed individuals, professionals (doctors, CAs, lawyers), and traders also pay Professional Tax. Self-employed individuals enroll and pay directly to the state authority, unlike employees where the employer deducts and deposits.