Resources · Professional Tax
Professional Tax in India — How It Works
Professional Tax (PT) is a state-level tax on salaried and professional income. Whether it applies, how much, and when it's due are all decided independently by each state.
Slab amounts and due dates aren't listed because several states don't levy PT at all, and among those that do, slabs and deadlines are set independently and revised without a common schedule. Check your state's commercial tax department for current figures, and confirm before filing.
How it generally works
Where PT applies, the employer deducts a small amount from each employee's monthly salary based on which income slab they fall into, and deposits it with the state government by a set deadline — typically monthly.
Why it's not the same everywhere
- Not every state levies Professional Tax — several states don't have it at all.
- Where it exists, the income slabs and the tax amount per slab are set independently by each state.
- The maximum PT deductible per person per year is capped at ₹2,500 across India, but how that cap is split into monthly slabs differs by state.
- Filing frequency and due dates are also state-specific.
What this means for payroll
A business registered in one state but employing people in another needs to track PT rules for each state separately — a common gap when a company expands beyond its home state.
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