Professional Tax
Explore state-wise Professional Tax applicability, salary slabs, contribution rates, due dates, and employer compliance requirements.
State-wise Directory
Check Professional Tax Applicability
Search for a State and check whether Professional Tax is applicable.
29 States
0102
0305
06
07
0809
10
1120
2122
2327
28
29
Andhra PradeshApplicable
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Arunachal PradeshNot Applicable
›AssamApplicable
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04BiharApplicable
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ChhattisgarhNot Applicable
›DelhiNot Applicable
›GoaNot Applicable
›GujaratApplicable
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HaryanaNot Applicable
›Himachal PradeshNot Applicable
›JharkhandApplicable
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12KarnatakaApplicable
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13KeralaApplicable
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14Madhya PradeshApplicable
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15MaharashtraApplicable
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16ManipurApplicable
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17MeghalayaApplicable
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18MizoramApplicable
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19NagalandApplicable
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OdishaNot Applicable
›PunjabApplicable
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RajasthanNot Applicable
›SikkimApplicable
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24Tamil NaduApplicable
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25TelanganaApplicable
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26TripuraApplicable
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Uttar PradeshNot Applicable
›UttarakhandNot Applicable
›West BengalApplicable
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No matching state found.
Disclaimer:
The information displayed is for general reference and compliance planning. Professional Tax rates, salary slabs, exemptions, due dates and filing requirements may change through State notifications. Refer to the latest official notification before taking payroll or legal decisions.
Understanding Professional Tax
What Is Professional Tax in India?
Professional Tax is a State-level tax imposed on income earned through employment, professions, trades and certain businesses. For salaried employees, the employer generally deducts the applicable amount from monthly salary and deposits it with the respective State authority.
Professional Tax applicability, salary slabs, deduction rates, registration requirements, payment due dates and return-filing obligations vary from one State to another. It is therefore important for employers to follow the rules applicable to each work location.
State-Specific Tax
Professional Tax is governed by individual State laws, salary slabs and local compliance requirements.
Employer Deduction
Employers generally deduct Professional Tax from eligible employees and remit it to the prescribed authority.
Salary-Based Slabs
The amount payable is usually determined by the employee’s monthly salary or income slab in the applicable State.
Registration and Returns
Covered employers may need Professional Tax registration, periodic payments, employee deductions and statutory returns.
Employer Checklist
Basic Professional Tax Compliance Process
1
Check State Applicability
Confirm whether Professional Tax applies in the employee’s work location and identify the relevant State law and authority.
2
Register the Establishment
Obtain the required Professional Tax registration or enrolment certificate based on the applicable State requirements.
3
Calculate, Deduct and Pay
Apply the applicable salary slab, deduct Professional Tax from eligible employees and remit it within the prescribed due date.
4
File Returns and Document
File periodic Professional Tax returns and preserve challans, payroll records, employee details and deduction statements.
Professional Tax Frequently Asked Questions
What is Professional Tax in India?
Professional Tax is a State-level tax imposed on income earned through employment, professions, trades and certain businesses. For salaried employees, the employer generally deducts the applicable amount from salary and deposits it with the prescribed State authority.
Is Professional Tax mandatory in every State?
No. Professional Tax applies only in States where the relevant law has been enacted. Employers must check the rules applicable to each employee work location, since salary slabs, payment frequency and filing requirements differ by State.
Who is responsible for deducting Professional Tax?
Employers are generally responsible for calculating and deducting Professional Tax from eligible salaried employees and remitting it to the appropriate State authority within the prescribed due date.
How is Professional Tax calculated for employees?
Professional Tax is generally calculated according to the employee’s monthly salary or income slab under the applicable State law. The rate, threshold and deduction amount may vary across States and employee categories.
What is the maximum Professional Tax payable in India?
The Constitution permits States to levy Professional Tax up to a maximum of ₹2,500 per person per financial year. The actual deduction may be lower and depends on the salary slabs prescribed by the respective State.
Do employers need Professional Tax registration?
In applicable States, employers may be required to obtain a Professional Tax registration certificate for employee deductions and an enrolment certificate for their own liability. The exact registration requirement depends on the relevant State law.
How often must Professional Tax be paid and returns filed?
Payment and return-filing frequency may be monthly, quarterly, half-yearly or annual depending on the State, number of employees, registration category and prescribed compliance schedule.
Are any employees exempt from Professional Tax?
Some States provide exemptions for specified categories such as persons with disabilities, senior citizens, defence personnel, parents or guardians of persons with disabilities, or employees below a prescribed salary threshold. Exemptions vary by State.
What records should employers maintain for Professional Tax compliance?
Employers should maintain employee salary details, deduction statements, payroll records, registration certificates, payment challans, filed returns, exemption declarations and other supporting documents required under the applicable State law.
What happens if Professional Tax is not deducted or paid on time?
Delayed registration, deduction, payment or return filing may attract interest, penalties, recovery proceedings or other action under the applicable State law. Employers should track State-specific due dates and maintain proof of timely compliance.
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