Professional Tax — Registration, Rates & Payment
Updated June 2026 · VerifiedWhat Is Professional Tax in India?
Professional tax (PT) is a direct tax levied by state governments on individuals earning income through employment, profession, trade or calling. It is governed by the respective state’s Professional Tax Act. Despite its name, it applies to all salaried employees, not just professionals. The Constitution caps PT at ₹2,500 per person per financial year.
- Employer’s obligation — Employers must deduct PT from employee salaries and remit it to the state government.
- Self-employed — Freelancers, doctors, lawyers, CAs and traders must obtain PT registration and pay directly.
- Deduction under Income Tax — PT paid is fully deductible under Section 16(iii) of the Income-tax Act.
Which States Levy Professional Tax?
| State / UT | Monthly Salary Slab | PT Per Month | Maximum / Year |
|---|---|---|---|
| Maharashtra | Up to ₹7,500: Nil; ₹7,501–₹10,000 | ₹175 | ₹2,500 |
| Maharashtra | Above ₹10,000 | ₹200 (₹300 in Feb) | ₹2,500 |
| Karnataka | Up to ₹15,000: Nil; ₹15,001–₹25,000 | ₹150 | ₹2,400 |
| Karnataka | Above ₹25,000 | ₹200 | ₹2,400 |
| West Bengal | Up to ₹10,000: Nil; ₹10,001–₹15,000 | ₹110 | ₹2,500 |
| West Bengal | ₹15,001–₹25,000 | ₹130 | ₹2,500 |
| West Bengal | Above ₹25,000 | ₹200 | ₹2,500 |
| Gujarat | Up to ₹5,999: Nil; ₹6,000–₹8,999 | ₹80 | ₹2,500 |
| Gujarat | ₹9,000–₹11,999 | ₹150 | ₹2,500 |
| Gujarat | Above ₹12,000 | ₹200 | ₹2,500 |
| Andhra Pradesh | Up to ₹15,000: Nil; ₹15,001–₹20,000 | ₹150 | ₹2,500 |
| Andhra Pradesh | Above ₹20,000 | ₹200 | ₹2,500 |
| Telangana | Up to ₹15,000: Nil; ₹15,001–₹20,000 | ₹150 | ₹2,500 |
| Telangana | Above ₹20,000 | ₹200 | ₹2,500 |
| Tamil Nadu | Up to ₹21,000: Nil; ₹21,001–₹30,000 | ₹100 | ₹2,500 |
| Tamil Nadu | ₹30,001–₹45,000 | ₹235 | ₹2,500 |
| Tamil Nadu | Above ₹45,000 | ₹275 (half-yearly) | ₹2,500 |
| Madhya Pradesh | Up to ₹18,750: Nil; Above ₹18,750 | ₹208 | ₹2,500 |
| Kerala | Up to ₹11,999: Nil; Above ₹12,000 | ₹120–₹250 | ₹2,500 |
| Assam | Up to ₹10,000: Nil; Above ₹10,000 | ₹150–₹208 | ₹2,500 |
| Odisha | Up to ₹13,304: Nil; Above ₹13,304 | ₹125–₹200 | ₹2,500 |
Which States Do NOT Levy Professional Tax?
The following major states and union territories do not levy professional tax:
- Delhi
- Uttar Pradesh
- Rajasthan
- Haryana
- Punjab
- Uttarakhand
- Himachal Pradesh
- Jammu & Kashmir
- All North-Eastern states except Assam, Meghalaya, Tripura and Manipur
How to Register for Professional Tax?
Registration requirements depend on the state. Generally two types of registration exist:
- PTEC (Professional Tax Enrolment Certificate) — For employers who deduct PT from employees. Must be obtained within 30 days of employing staff.
- PTRC (Professional Tax Registration Certificate) — For self-employed individuals, freelancers and professionals.
- Visit the state tax portal — e.g., mahagst.gov.in for Maharashtra, gstkarnataka.gov.in for Karnataka.
- Fill the application form — Provide PAN, Aadhaar, business address, employee count and salary details.
- Upload documents — PAN card, address proof, incorporation certificate (if company), salary register.
- Pay registration fee — Nominal fee of ₹500–₹2,500 depending on the state.
- Receive certificate — PTEC/PTRC number is issued, usually within 7–15 days.
How to Pay Professional Tax Monthly?
Employers must remit the deducted PT to the state government on or before the prescribed due date (usually the last day of the following month). Steps:
- Login to the state’s professional tax portal.
- Select the return period (monthly or half-yearly depending on state rules).
- Enter employee count, salary details and tax deducted.
- Pay via net banking, debit card or challan.
- Download the payment receipt and maintain records.
What Is the Penalty for Non-Payment of Professional Tax?
Penalties for professional tax non-compliance vary by state but generally include:
- Late payment interest — 1% to 2% per month on the outstanding amount.
- Penalty for non-registration — Up to 2–5 times the tax amount in some states.
- Penalty for non-deduction — Employers who fail to deduct PT from salaries can be penalised and held personally liable.
- Prosecution — Persistent non-compliance may result in prosecution under state PT laws.
Frequently Asked Questions
Is professional tax deductible under income tax?
Yes. Professional tax paid during the financial year is fully deductible under Section 16(iii) of the Income-tax Act as a deduction from salary income. Self-employed individuals can claim it as a business expense under Section 37.
Who is exempt from professional tax?
Exemptions vary by state. Common exemptions include members of the armed forces, persons with disabilities (above 40%), parents of children with disabilities, and senior citizens above 65 years in some states. Women are exempt in some states like Madhya Pradesh.
Can professional tax exceed ₹2,500 per year?
No. Article 276(2) of the Constitution of India caps professional tax at ₹2,500 per person per financial year. No state can levy more than this amount.
Is professional tax applicable to freelancers and consultants?
Yes. Self-employed professionals including freelancers, consultants, doctors, lawyers and chartered accountants must register and pay professional tax in states where it is levied, based on their income slab.
What happens if my employer does not deduct professional tax?
The employer is liable to pay the tax amount along with interest and penalty. The employee is not personally penalised, but the amount becomes the employer’s responsibility. Employees should check their pay slips to ensure PT is being deducted and remitted.