Professional Tax
Professional Tax is a state-level direct tax imposed in India on individuals, professionals, businesses, and entities engaged in various trades, professions, or employment within a specific state.
Categories under Professional Tax Two types of categories under PT:
PTRC
- Salaried Employees
PTCE
- Professional (Lawyer, Doctor, CA, Consultant, Engineers, Contractors etc.)
- Company, LLP, Firms
- Corporations & Clubs
- Societies & Associations
Registration Guidelines
- 30 Days Limit: Registration for Professional Tax must be completed within 30 days of employing staff in a company.
- Multiple Branches: In case of multiple branches, registration has to be done separately for each branch under the jurisdiction of the respective sales tax office.
- PTRC (For Employers): Employers are responsible for registering employees under PTRC and deducting Professional Tax from the salaries or wages of their employees.
- PTEC (For Professionals): Professionals are required to register themselves under PTEC within 30 days from commencing their practice and pay up to ₹2500 directly to the state's tax authorities.
Tax Exemption (PTRC)
According to Section 16 (iii) of the Income Tax Act 1961, the Profession Tax paid by an employee brings a direct benefit.
100% Tax Deductible
It is allowed as a deduction from your gross salary income.
Applicability & Exemptions
Applicability
Professional Tax is applicable to individuals and entities involved in professions, trades, callings, or employments, including salaried employees, self-employed professionals (doctors, lawyers, chartered accountants), traders, and businesses operating within a specific state. For salaried employees' applicability criteria differ from state to state according to salary slab as per Professional Tax.
Non-Applicability (Exemptions)
Exemptions under Professional Tax (PT) vary from state to state in India, as each state has its own Professional Tax Act and rules.
Senior Citizens
Some states offer exemptions or reduced rates to senior citizens, typically defined as individuals above 60 or 65 years.
Persons with Disabilities
Exemptions or concessions may be available to individuals with physical disabilities, visual impairments, etc.
Parents or Guardians
Parents or guardians responsible for minors or individuals with disabilities may be exempt from paying on their behalf.
Public Servants
Certain categories like government employees or members of the armed forces may be exempt.
Low Income Threshold
Some states provide exemptions for salaried employees whose income falls below a specified threshold.
Women Professionals
Women professionals may be eligible for exemptions (e.g. agent under Mahila Pradhan Kshetriya Bachat Yojana).
Agricultural Income
Income derived solely from agricultural activities, subject to specific conditions, may be exempt.
Certain Professions
Specific professions or trades like Badli workers in the Textile Industry may be exempt.
Crucial Note: Compliance with Professional Tax regulations is crucial, as non-compliance can result in penalties and legal consequences. So, it's essential to follow the guidelines set by the respective state's tax authorities.
Applicable & Non-Applicable States
Applicable States
21 States & UTsNon-Applicable States
17 States & UTsRate & Slabs 2026
This tax is typically calculated based on income slabs, and higher-income individuals are subject to higher tax rates. Employers are responsible for deducting Professional Tax from the salaries or wages of their employees and remitting it to the respective state government. The revenue generated serves as an essential source of income for state governments to finance welfare and development programs
Select your state from the dropdown below to check the latest Professional Tax rates, registration process, and return filing deadlines for 2026.State Name
Professional Tax Rates
Consequences of Non-Compliance
Failure to submit Professional Tax (PT) returns and make timely payments can result in severe legal and financial repercussions. Here are the common consequences for not submitting PT:
Penalties and Interest
Most states impose penalties (% of unpaid tax) and interest for late or non-payment. Moreover, they can attach your bank account as well.
Legal Action
Tax authorities may take legal action against individuals or entities that fail to comply, including issuing notices and conducting audits.
Fines and Prosecution
In serious cases, prosecution can be filed. Severe non-compliance may lead to hefty fines and individuals/entities may face prosecution.
Non-Deductibility of PT
If an employer fails to deduct and remit PT, the PT amount may not be allowed as a deduction for tax purposes.
Liability of Directors/Partners
In some cases, the directors or partners of a business entity may become personally liable for unpaid PT dues.
Seizure of Assets
Tax authorities may have the power to seize assets or properties to recover unpaid Professional Tax dues.
Damage to Reputation
Non-compliance can harm the reputation of individuals or businesses and affect their ability to practice their professions.
To avoid these consequences, it is essential for employers, professionals, and businesses to understand the PT regulations applicable in their state, maintain accurate records, file returns on time, and make timely payments. Staying informed about changes and due dates is crucial to ensure compliance.
Professional Tax Rate 2026
| SR No | State | Registration Process | Filling of Return | Last Date of Filling Return | PT Rate |
|---|---|---|---|---|---|
| 1 | Andhra Pradesh | Online | Montly | Every Month on Day 10 | Upto 15000 - ₹ 0.00 Between 15001-20000 - ₹ 150 Above 20001 - ₹ 200 |
| 2 | Assam | Offline | Montly | Every Month on Day 28 | Upto 15000 - ₹ 0.00 Between 15001 To 25000 - ₹ 180.00 Above 25001 - ₹ 208.00 |
| 3 | Bihar | Offline | Anually | Every year(s) on day 30 of November | Upto 300000 - ₹ 0.00 Between 300001 To 500000 - ₹ 1000.00 Between 500001 To 1000000 - ₹ 2000.00 Above 1000001 - ₹ 2500.00 |
| 4 | Gujarat | Online | Annual and Monthly | Annual Return - Every year(s) on day 20 of December | Upto 12000 - ₹ 0.00 Above 12000 - ₹ 200.00 |
| 5 | Jharkhand | Offline | Annual | Every year(s) on day 31 of October | Upto 300000 - ₹ 0.00 Between 300001 To 500000 - ₹ 1200.00 Between 500001 To 800000 - ₹ 1800.00 Between 800001 To 1000000 - ₹ 2100.00 Above 1000001 - ₹ 2500.00 |
| 6 | Karnataka | Online | Annual | Every year(s) on day 30 of May | Upto 24999 - ₹ 0.00 Above 24999 - ₹ 200.00 |
| 7 | Kerala | Offline | Half yearly | Half Yearly Return : 31st of August & 28 Febuary | Upto 11999 - ₹ 0.00 Between 12000 To 17999 - ₹ 320.00 Between 18000 To 29999 - ₹ 450.00 Between 30000 To 44999 - ₹ 600.00 Between 45000 To 99999 - ₹ 750.00 Between 100000 To 124999 - ₹ 1000.00 Above 125000 - ₹ 1250.00 |
| 8 | Madhya Pradesh | Online | Monthly & Quarterly | Monthly PT Remittance - Every month on day 10 & Quarterly Returns - Every 3 month(s) starting on day 15 of January | Upto 225000 - ₹ 0.00 - Nil Between 225001 To 300000 - ₹ 1500.00 - INR 125 Per Month Between 300001 To 400000 - ₹ 2000.00 - INR 166 Per Month For 11 Months And INR 174 For 12th Month Above 400001 - ₹ 2500.00 - INR 208 Per Month For 11 Months And INR 212 For 12th Month |
| 9 | Maharashtra | Online | Annual & Monthly | Annual Return Every year(s) on day 31 of March & Monthly Return Every month on last day | Upto 7500 ₹ 0.00 Nil for Male Employees Between 7501 To 10000 ₹ 175.00 For Male Employees Above 10000 ₹ 200.00 For Male Employees Above 10000 ₹ 300.00 Employer has to deduct on February month only for Male Employees Upto 25000 ₹ 0.00 Nil for Female Employees Above 25000 ₹ 200.00 For Female Employees Above 25000 ₹ 300.00 Employer has to deduct on February month only for Female Employees |
| 10 | Manipur | Offline | Annual | Every year(s) on day 30 of March | Upto 50000 - ₹ 0.00 Between 50001 To 75000 - ₹ 1200.00 Between 75001 To 100000 - ₹ 2000.00 Between 100001 To 125000 - ₹ 2400.00 Above 125001 - ₹ 2500.00 |
| 11 | Meghalaya | Offline | Monthly | Every month on day 28 | Upto 50000 - ₹ 0.00 Between 50001 To 75000 - ₹ 200.00 Between 75001 To 100000 - ₹ 300.00 Between 100001 To 150000 - ₹ 500.00 Between 150001 To 200000 - ₹ 750.00 Between 200001 To 250000 - ₹ 1000.00 Between 250001 To 300000 - ₹ 1250.00 Between 300001 To 350000 - ₹ 1500.00 Between 350001 To 400000 - ₹ 1800.00 Between 400001 To 450000 - ₹ 2100.00 Between 450001 To 500000 - ₹ 2400.00 Above 500001 - ₹ 2500.00 |
| 12 | Mizoram | Offline | Anual | Every year(s) on day 30 of June | Upto 5000 - ₹ 0.00 Nil Between 5001 To 8000 - ₹ 75.00 Assesee may pay in lump sum INR 900 per annum Between 8001 To 10000 - ₹ 120.00 Assesee may pay in lump sum INR 1440 per annum Between 10001 To 12000 - ₹ 150.00 Assesee may pay in lump sum INR 1800 per annum Between 12001 To 15000 - ₹ 180.00 Assesee may pay in lump sum INR 2160 per annum Between 15001 To 20000 - ₹ 195.00 Assesee may pay in lump sum INR 2340 per annum Above 20001 - ₹ 208.00 Assesee may pay in lump sum INR 2500 per annum |
| 13 | Nagaland | Offline | Annual | Every year(s) on day 30 of April | Upto 4000 - ₹ 0.00 Between 4001 To 5000 - ₹ 35.00 Between 5001 To 7000 - ₹ 75.00 Between 7001 To 9000 - ₹ 110.00 Between 9001 To 12000 - ₹ 180.00 Above 12001 - ₹ 208.00 |
| 14 | Odisha | Online | Annual | Every year(s) on day 30 of March | Upto 160000 - ₹ 0.00 Nil Between 160001 To 300000 - ₹ 1500.00 and ₹ 125.00 per month Above 300001 - ₹2400.00 and 200.00 per month Above 300001 ₹ 300.00 Employer has to deduct on March month only |
| 15 | Puducherry | Offline | Annual | Every 6 month(s) starting on last day of June | Upto 99999 - ₹ 0.00 Between 100000 To 200000 - ₹ 250.00 Between 200001 To 300000 - ₹ 500.00 Between 300001 To 400000 - ₹ 750.00 Between 400001 To 500000 - ₹ 1000.00 Above 500001 - ₹ 1250.00 |
| 16 | Punjab | Online | Monthly | 20th day of the following month | Above 250000 - ₹ 200.00 - All such persons who are assessable under the Head Income from Salaries and/ or Wages as per the Income Tax Act, 1961 |
| 17 | Sikkim | Offline | Quaterly | Every 3 month(s) starting on day 30 of April | Upto 20000 - ₹ 0.00 Between 20001 To 30000 - ₹ 125.00 Between 30001 To 40000 - ₹ 150.00 Above 40001 - ₹ 200.00 |
| 18 | Tamil Nadu | Online | Half yearly | Every 6 month(s) starting on last day of September | Upto 21000 - ₹ 0.00 Between 21001 To 30000 - ₹ 180.00 Between 30001 To 45000 - ₹ 425.00 Between 45001 To 60000 - ₹ 930.00 Between 60001 To 75000 - ₹ 1025.00 Above 75001 - ₹ 1250.00 |
| 19 | Telangana | Online | Monthly | Every month on day 10 | Upto 15000 - ₹ 0.00 Between 15001 To 20000 - ₹ 150.00 Above 20001 - ₹ 200.00 |
| 20 | Tripura | Offline | Monthly | 20th day of the following month | Salary (INR) PT Amount Remarks Upto 7500 - ₹ 0.00 - Nil Between 7501 To 15000 - ₹ 1800.00 - INR 150 Per Month Above 15001 - ₹ 2496.00 - INR 208 Per Month |
| 21 | West Bengal | Online | Annual | Every year(s) on day 31 of May | Upto 10000 ₹ 0.00 Nil Between 10001 To 15000 - ₹ 110.00 Between 15001 To 25000 - ₹ 130.00 Between 25001 To 40000 - ₹ 150.00 Above 40001 - ₹ 200.00 |
