What is professional tax? −
Professional tax (PT) is a state-level tax levied on salaried employees and professionals in India. It is deducted by the employer from the employee's salary and paid to the state government. The maximum PT allowed is ₹2,500 per year as per Article 276 of the Constitution.
Which states charge professional tax? −
Professional tax is levied by several Indian states including Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Gujarat, Madhya Pradesh, Odisha, Assam, Meghalaya, Tripura, Jharkhand, Bihar, and Sikkim. States like Delhi, Haryana, Rajasthan, and UP do not levy PT.
Is professional tax deductible from income tax? −
Yes. Professional tax paid is allowed as a deduction under Section 16(iii) of the Income Tax Act. It is deducted from your gross salary to arrive at the taxable salary income.
What is the maximum professional tax in India? +
The maximum professional tax that any state can levy is ₹2,500 per year. This limit is set by Article 276 of the Constitution of India. Most states charge ₹200/month (₹2,400/year) with an adjustment in February.
Who is responsible for paying professional tax? +
For salaried employees, the employer is responsible for deducting PT from salary and depositing it with the state government. Self-employed professionals and business owners must register and pay PT themselves.
Is professional tax the same across all states? +
No. Each state has its own PT slabs and rates. For example, Maharashtra charges ₹200/month for salaries above ₹10,000, while Karnataka charges ₹200/month for salaries above ₹15,000. Some states do not levy PT at all.
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