Table of Contents

How to Calculate Professional Tax?
Professional Tax Exemption Clauses
State-wise Professional Tax Slab FY 24 - 25
States and Union Territories where Professional Tax is not Applicable
- State
- Union Territories
FAQs

Professional Tax in India - Tax Slab FY 24 - 25 & FAQs

Updated on December 23, 2024 , 283972 views

professional tax is a tax levied at the state level in India. It is collected by the State Government by every individual who earns a living through mediums like trade, employment, or professional. Individuals who practice and earn through profession, such as a Company Secretary, Lawyer, Chartered Accountant, Cost Accountant, Doctor or are a Merchant/ Businessperson are liable to pay professional tax in some states of the country. Professional tax is payable by private company employees or by people who earn a salary in general.

Clause (2) of Article 276 of the Constitution of India provides the right to the State Government for levy and collection of professional tax or tax on the profession. Professional tax is levied through predetermined tax slabs and is paid on a monthly Basis. Some of the states which currently impose a professional tax in India are Maharashtra, Gujarat, Andhra Pradesh, Kerala, Tamil Nadu, Karnataka, Bihar, Assam, Madhya Pradesh, Telangana, Meghalaya, Odisha, West Bengal, Sikkim and Tripura.

Although the tax is levied depending upon the Income of the individual, the maximum amount any State can levy as Professional Tax is restricted to INR 2,500. The deductions of Professional tax are made under Section 16 of income tax Act, 1961. And, the balance amount shall be calculated as per the slabs applicable.

How to Calculate Professional Tax?

Individuals can calculate their Professional Tax Liability on the basis of the gross salary and tax slab prescribed by the state government levying Professional Tax. The slab rates differ from state to state.

For the illustration purpose, we have taken Andhra Pradesh for the Professional Tax rates-

Gross income up to INR 15,000 there will be no tax
For INR 15,001 to INR 20,000, it is INR 150 per month
For INR 20,001 and above, it is INR 200 per month

Professional Tax Exemption Clauses

The exemptions for the Professional tax are:

Parent or guardian of a physically challenged or mentally retarded child
A person suffering 40 percent or more of permanent physical disability or blindness
An assessee has completed 65 years of age. For the state of Karnataka, it is 60 years

*Note- The above provisions can vary in different states.*

State-wise Professional Tax Slab FY 24 - 25

Here's is the list of Professional Tax Slab for different states-

Professional Tax Slab in Maharashtra

Monthly salary	Tax per month
Up to INR 7,500	Nil (for men)
Up to INR 10,000	Nil (for women)
INR 7,501– INR 10,000	INR 175
Above INR 10,000	INR 200, except for February when it is INR 300

Professional Tax Slab in Tamil Nadu

Monthly salary	Tax per month
Up to INR 21,000	Nil
INR 21,001– INR30,000	INR 135
INR 30,001– INR 45,000	INR 315
INR 45,001– INR 60,000	INR 690
Above INR 60,000	INR 1,095

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Professional Tax Slab in Karnataka

Monthly salary	Tax per month
Up to INR 24,999	NIL
Above INR 25,000	INR 200

Professional Tax Slab in Andhra Pradesh

Monthly salary	Tax per month
Up to INR 15,000	NIL
From INR 15,001 to INR 20,000	INR 150
Above INR 20,001	INR 200

Professional Tax Slab in Kerala

Monthly salary	Tax per month
Upto INR 11,999	NIL
INR 12,000 to INR 17,999	INR 120
INR 18,000 to INR 29,999	INR 180
INR 30,000 to INR 44,999	INR 300
INR 45,000 to INR 59,999	INR 450
INR 60,000 to INR 74,999	INR 600
INR 75,000 to INR 99,999	INR 750
INR 1,00,000 to INR 1,24,999	INR 1000
Above 1,25,000	INR 1250

Professional Tax Slab in Telangana

Monthly salary	Tax per month
Up to INR 15,000	NIL
From INR 15,001 to INR 20,000	INR 150
Above INR 20,000	INR 200

Professional Tax Slab in Gujarat

Monthly salary	Tax per month
Up to INR 5,999	NIL
From INR 6,000 to INR 8,999	INR 80
From INR 9,000 to INR 11,999	INR 150
INR 12,000 and Above	INR 200

Professional Tax Slab in Bihar

Monthly salary	Tax per month
Upto INR 3,00,000	NIL
INR 3,00,001 to INR 5,00,000	INR 1000
INR 5,00,001 to INR 10,00,000	INR 2000
Above INR 10,00,001	INR 2500

Professional Tax Slab in Madhya Pradesh

Monthly salary	Tax per month
Upto INR 2,25,000	NIL
INR 22,5001 to INR 3,00,000	INR 1500. INR 125 Per Month
INR 3,00,001 to INR 4,00,000	INR 2000. INR 166 Per Month For 11 Months And INR 174 For 12th Month
Above INR 4,00,001	INR 2500. INR 208 Per Month For 11 Months And INR 212 For 12th Month

Professional Tax Slab in West Bengal

Monthly salary	Tax per month
Up to INR 10,000	Nil
INR 10,001 to INR 15,000	INR 110
INR 15,001 to INR 25,000	INR 130
INR 25,001 to INR 40,000	INR 150
Above INR 40,001	INR 200

Professional Tax Slab in Sikkim

Monthly salary	Tax per month
Up to INR 20,000	NIL
From INR 20,001 to INR 30,000	INR 125
From INR 30,001 to INR 40,000	INR 150
Above INR 40,000	INR 200

Professional Tax Slab in Assam

Monthly salary	Tax per month
Up to INR 10,000	NIL
From INR 10,001 to INR 15,000	INR 150
From INR 15,001 to INR 25,000	INR 180
Above INR 25,000	INR 208

Professional Tax Slab in Meghalaya

Monthly salary	Tax per month
Upto INR 50000	NIL
INR 50,001 to INR 75,000	INR 200
INR 75,001 to INR 1,00,000	INR 300
INR 1,00,001 to INR 1,50,000	INR 500
INR 1,50,001 to INR 2,00,000	INR 750
INR 2,00,001 to INR 2,50,000	INR 1000
INR 2,50,001 to INR 3,00,000	INR 1250
INR 3,00,001 to INR 3,50,000	INR 1500
INR 3,50,001 to INR 4,00,000	INR 1800
INR 4,00,001 to INR 4,50,000	INR 2100
INR 4,50,001 to INR 5,00,000	INR 2400
Above 5,00,001	INR 2500

Professional Tax Slab in Tripura

Monthly salary	Tax per month
Upto 7500 INR 0.00	Nil
Between 7501 To 15000	INR 1800.00. INR 150 Per Month
Above 15001 INR 2496.00	INR 208 Per Month

Professional Tax Slab in Chattishgarh

Monthly salary	Tax per month
Up to INR 100,000	Nil
From INR 100,001 to INR 150,000	INR 130
From INR 150,001 to INR 200,000	INR 150
From INR 200,001 to INR 250,000	INR 200
From INR 250,001 and above	INR 208 and INR 212*

*INR 212 will be deducted yearly once; in the last month of the Deduction cycle for people with salaries above INR 250,001.

Professional Tax Slab in Odisha

Monthly salary	Tax per month
Upto 160000	Nil
Between 160001 To 300000	INR 1500.00 Monthly INR 125
Above 300001 INR 2400.00	Monthly INR 200/- (Apr to Feb which will be paid in subsequent months. For the month of March INR 300 to be paid in April)

States and Union Territories where Professional Tax is not Applicable

State

Arunachal Pradesh
Haryana
Himachal Pradesh
Jammu & Kashmir
Punjab
Rajasthan
Nagaland
Uttaranchal
Uttar Pradesh

Union Territories

Andaman & Nicobar
Chandigarh
Delhi
Puducherry
Dadra & Nagar Haveli
Lakshadweep
Daman & Diu

FAQs

1. Does professional tax differ based on which state you are filing?

A: As the state governments levy the professional tax, it differs from state to state. Each state government declares its tax slab, and you will have to check which slab you fall under.

2. How is the professional tax levied?

A: Professional tax is levied under Article 276(2) of the Indian Constitution. The employer deducts it from the salaries of the employees. It is then remitted to the respective state governments. The maximum amount of professional tax payable by an individual is Rs. 2500.

3.Does it fall under direct taxation?

A: The professional tax falls under indirect taxation. It is payable by salaried individuals or persons carrying out a particular trade or profession such as a lawyer, doctor, chartered accountant, etc., are liable to pay.

4. Do non-salaried people have to pay professional tax?

A: It is levied on all individuals who are involved in professions. In other words, they may not be salaried individuals, but carrying out a trade that produces guaranteed income. Professionals like lawyers, doctors, chartered accountants, and people carrying out other similar businesses are liable to pay PT.

5. Are there rebates available for professional tax?

A: Since the PT is paid at the end of a month, it is expected that the tax is paid after completion of a full month’s employment. In such a scenario, you cannot file for IT returns or rebate on your professional tax.

6. How is the professional tax calculated?

A: For individuals whose gross income is up to Rs. 15,000, there is no professional tax. For individuals with income ranging between Rs. 15,001 to Rs. 20,000, a professional charge of Rs. 150 per month is levied. For those earning above Rs. 20000, PT of Rs. 200 per month can be collected.

7. How do I know if I have to pay professional tax?

A: If your annual income is more than Rs.15,000, then you are liable to pay professional tax. You will have to check which tax slab you fall under and in which state you are working. Accordingly, your employer will pay the tax.

8. Does the value of the professional tax payable vary annually?

A: The professional tax amount is decided by the state government and cannot exceed Rs.2500. It tax slabs can vary year to year, but it is fixed for a given financial year.

9. Whom should I consult before paying PT?

A: If you are a salaried individual, you can discuss it with the payment department of your office. If you are an individual, you can review the tax slab and the payment of professional tax with a chartered accountant. You can also go online and check out the various websites providing insights about the same.

10. Can I pay the tax in a bank?

A: Depending on the state you are making the payment. Ideally, you can do from both online and offline mode. If you make the payment offline, then check the Bank's list where you can make the payment. You can download the form from the IT department's website, fill it up, and accordingly file the tax.

11. What PT deductions I am eligible for?

A: You will be exempt from paying the tax if you are a parent of a mentally challenged child. You will also be exempt from paying the tax, if you have a permanent physical disability or blindness. Similarly, if you are above the age of 65, you will be exempt from paying the tax. If you work in Karnataka, then the exemption is for all assesses 60 years and above.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.