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The professional tax paid by an employee is allowed as a deduction from their gross salary income under Section 16 (iii) of the Income Tax Act, 1961. While most states and UTs have professional tax, certain states and UTs in India do not have it.
In this article, we will discuss what professional tax is and the states and UTs where this type of tax is applicable along with the professional tax slabs.
Professional tax is a type of direct tax which is levied on individuals earning an income by the way of either practicing a profession, employment, trade or calling. Income tax is levied by the Central Government. However, professional tax is levied by the Government of a State or UT in India. Majority of states in India impose professional tax, but this tax is not applicable in certain states like Haryana and Uttar Pradesh.
The deduction of professional tax under Section (iii) of the Income Tax Act, 1961, is limited to Rs. 2,500 per year. If the employer pays the professional tax on the employee’s behalf, the amount will be deducted from the employee’s salary.
Here is a list of the states and union territories in India where the professional tax in levied on individuals who earn their income through trade, employment, calling or profession:
Following are the Indian states and union territories where the professional tax is not applicable on individuals:
Let’s take a look at the tax slabs for professional tax across various states and union territories in India.
The professional tax in Andhra Pradesh is deducted on a monthly basis. Here is the professional tax slab for this state:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 15,000 |
Not Applicable |
|
From Rs. 15,001 to Rs. 20,000 |
Rs. 150 |
|
Rs. 20,001 and above |
Rs. 200 |
The professional tax in Assam is deducted every month. The professional tax slab for Assam is mentioned below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 10,000 |
Not Applicable |
|
From Rs. 10,001 to Rs. 15,000 |
Rs. 150 |
|
From Rs. 15,001 to Rs. 25,000 |
Rs. 180 |
|
Above Rs. 25,000 |
Rs. 208 |
In the case of Bihar, the professional tax is deducted once every year. The professional tax slab for Bihar is mentioned herewith:
|
Annual Salary |
Professional Tax Per Year |
|
Up to Rs. 300,000 |
Not Applicable |
|
From Rs. 300,001 to Rs. 500,000 |
Rs. 1,000 |
|
From Rs. 500,001 to Rs. 1,000,000 |
Rs. 2,000 |
|
Rs. 1,000,001 and above |
Rs. 2,500 |
In the case of Chhattisgarh, the professional tax is deducted once a month. The professional tax slab for Chhattisgarh is mentioned herewith:
|
Annual Salary |
Professional Tax Per Month |
|
Up to Rs. 100,000 |
Not Applicable |
|
From Rs. 100,001 to Rs. 150,000 |
Rs. 130 |
|
From Rs. 150,001 to Rs. 200,000 |
Rs. 150 |
|
From Rs. 200,001 to Rs. 250,000 |
Rs. 200 |
|
From Rs. 250,001 and above |
Rs. 208 and Rs. 212* |
*Rs. 212 will be deducted once every year; in the last month of the deduction cycle of individuals with salaries exceeding Rs. 250,001.
The Professional Tax in Gujarat is deducted on a monthly basis. You can find the professional tax slab for Gujarat below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 12,000 |
Not Applicable |
|
From Rs. 12,000 and above |
Rs. 200 |
For the state of Jharkhand, the Professional Tax is deducted every quarter. You can check out the professional tax slab for Jharkhand below:
|
Annual Salary |
Professional Tax Per Month |
|
Up to Rs. 300,000 |
Not Applicable |
|
From Rs. 300,001 to Rs. 500,000 |
Rs. 1200 |
|
From Rs. 500,001 to Rs. 800,000 |
Rs. 1800 |
|
From Rs. 800,001 to Rs. 1,000,000 |
Rs. 2100 |
|
Rs. 1,000,001 and above |
Rs. 2500 |
Source: Department of Commercial Taxes (Jharkhand)
For the state of Karnataka, the professional tax is deducted per month. The professional tax slab Karnataka is mentioned below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 15,000 |
Not Applicable |
|
From Rs. 15,000 and above |
Rs. 200 |
The Professional Tax is deducted once in every 6 months in Kerala. The professional tax is deducted as per the professional tax slab mentioned below:
|
Half-Yearly Salary |
Professional Tax Per 6 Months |
|
Up to Rs. 11,999 |
Not Applicable |
|
From Rs. 12,000 to Rs. 17,999 |
Rs. 120 |
|
From Rs. 18,000 to Rs. 29,999 |
Rs. 180 |
|
From Rs. 30,000 to Rs. 44,999 |
Rs. 300 |
|
From Rs. 45,000 to Rs. 59,999 |
Rs. 450 |
|
From Rs. 60,000 to Rs. 74,999 |
Rs. 600 |
|
From Rs. 75,000 to Rs. 99,999 |
Rs. 750 |
|
From Rs. 100,000 to Rs. 124,999 |
Rs. 1,000 |
|
Rs. 125,000 or above |
Rs. 1,250 |
The Professional Tax is deducted on a monthly basis in the state of Madhya Pradesh. The professional tax slab for Madhya Pradesh is mentioned in the the table below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 18,750 |
Not Applicable |
|
From Rs. 18,751 to Rs. 25,000 |
Rs. 125 |
|
From Rs. 25,001 to Rs. 33,333 |
Rs. 166 & 174* |
|
From Rs. 33,334 |
Rs. 208 & 212* |
*In case of employees who earn more than Rs. 25,001 and less than Rs. 33,333 per month, Rs. 166 shall be deducted as professional tax for the first 11 months while in the last month, Rs. 174 shall be deducted.
*In case of employees who earn more Rs. 33,334 per month, Rs. 208 shall be deducted as tax for the first 11 months, for the last month Rs. 212 shall be deducted.
The Professional Tax is paid by the eligible individuals in Maharashtra on a monthly basis. Here is the professional tax slab for this state:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 7,500 |
Not Applicable |
|
From Rs. 7,501 to Rs. 10,000 |
Rs. 175 |
|
Above Rs. 10,001 |
Rs. 200 & 300* |
*The employees that earn above Rs. 10,001 in Maharashtra are liable to pay professional tax for Rs. 200 for the first 11 months and Rs. 300 for the last month.
For the state of Manipur, the professional tax is deducted on an annual basis. The professional tax is deducted for this state as per the table below:
|
Annual Salary |
Professional Tax Per Year |
|
Up to Rs. 50,000 |
Not Applicable |
|
From Rs. 50,001 to Rs. 75,000 |
Rs. 1,200 |
|
From Rs. 75,001 to Rs. 100,000 |
Rs. 2,000 |
|
From Rs. 100,001 to Rs. 125,000 |
Rs. 2,400 |
|
Above Rs. 125,001 |
Rs. 2,500 |
When it comes to Meghalaya, the professional tax is paid by the individuals every month. Find the professional tax slab for this state below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 4,166 |
Not Applicable |
|
From Rs. 4,167 to Rs. 6,250 |
Rs. 16.50 |
|
From Rs. 6,251 to Rs. 8,333 |
Rs. 25 |
|
From Rs. 8,334 to Rs. 12,500 |
Rs. 41.50 |
|
From Rs. 12,501 to Rs. 16,666 |
Rs. 62.50 |
|
From Rs. 16,667 to Rs. 20,833 |
Rs. 83.33 |
|
From Rs. 20,834 to Rs. 25,000 |
Rs. 104.16 |
|
From Rs. 25,001 to Rs. 29,166 |
Rs. 125 |
|
From Rs. 29,167 to Rs. 33,333 |
Rs. 150 |
|
From Rs. 33,334 to Rs. 37,500 |
Rs. 175 |
|
From Rs. 37,501 to Rs. 41,666 |
Rs. 200 |
|
Rs. 41,667 and above |
Rs. 208 |
The professional tax in Mizoram is deducted per month. You can check out the professional tax slab for this state in the table mentioned below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 5,000 |
Not Applicable |
|
From Rs. 5,001 to Rs. 8,000 |
Rs. 75 |
|
From Rs. 8,001 to Rs. 10,000 |
Rs. 120 |
|
From Rs. 10,001 to Rs. 12,000 |
Rs.150 |
|
From Rs. 12,001 to Rs. 15,000 |
Rs.180 |
|
From Rs. 15,001 or above |
Rs. 208 |
The professional tax in Nagaland is deducted per month. You can check out the professional tax slab for this state in the table mentioned below:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 4,000 |
Not Applicable |
|
From Rs. 4,001 to Rs. 5,000 |
Rs. 35 |
|
From Rs. 5,001 to Rs. 7,000 |
Rs. 75 |
|
From Rs. 7,001 to Rs. 9,000 |
Rs.110 |
|
From Rs. 9,001 to Rs. 12,000 |
Rs.180 |
|
From Rs. 12,001 or above |
Rs. 208 |
Like most states where the professional tax is applicable, the professional tax in Odisha is deducted on a monthly basis. You can check out the professional tax slab for Odisha below:
|
Annual Salary |
Professional Tax Per Month |
|
Up to Rs. 159,999 |
Not Applicable |
|
From Rs. 160,000 to Rs. 300,000 |
Rs. 125 |
|
Rs. 300,000 or above |
Rs. 200 & 300* |
*In case of employees who earn at least Rs. 3 lakhs or above, Rs. 200 shall be deducted as professional tax for the first 11 months, while for the last month Rs. 300 shall be deducted.
In Puducherry (Pondicherry), the Professional Tax is deducted once every 6 months. The table mentioned below states how the professional tax is deducted in this Union Territory:
|
Half-Yearly Salary |
Professional Tax Per 6 Months |
|
Up to Rs. 99,999 |
Not Applicable |
|
From Rs. 100,000 to Rs. 200,000 |
Rs. 250 |
|
From Rs. 200,001 to Rs. 300,000 |
Rs. 500 |
|
From Rs. 300,001 to Rs. 400,000 |
Rs. 750 |
|
From Rs. 400,001 to Rs. 500,000 |
Rs. 1,000 |
|
Rs. 500,001 and above |
Rs. 1,250 |
For the state of Punjab, the professional tax is deducted on a monthly basis. Here is the professional tax slab for Punjab:
|
Monthly Salary |
Professional Tax Per Month |
|
Above Rs. 20,833 |
Rs. 200 |
For Sikkim, the professional tax is deducted on a monthly basis. Here is the professional tax slab for Sikkim:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 20,000 |
Not Applicable |
|
From Rs. 20,001 to Rs. 30,000 |
Rs. 125 |
|
From Rs. 30,001 to Rs. 40,000 |
Rs. 150 |
|
From Rs. 40,001 or above |
Rs. 200 |
Professional Tax Slab for Tamil Nadu
In Tamil Nadu, the professional tax is paid by the eligible individuals every 6 months. Let’s take the look at the table below to understand how the professional tax is deducted in this state:
|
Half-Yearly Salary |
Professional Tax Per 6 Months |
|
Up to Rs. 21,000 |
Not Applicable |
|
From Rs. 21,001 to Rs. 30,000 |
Rs. 100 |
|
From Rs. 30,001 to Rs. 45,000 |
Rs. 235 |
|
From Rs. 45,001 to Rs. 60,000 |
Rs. 510 |
|
From Rs. 60,001 to Rs. 75,000 |
Rs. 760 |
|
Above Rs. 75,000 |
Rs. 1,095 |
For the state of Telangana, the professional tax is deducted every month. The table below shows how the professional tax is deducted in this state:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 15,000 |
Not Applicable |
|
From Rs. 15,001 to Rs. 20,000 |
Rs. 150 |
|
Above Rs. 20,000 |
Rs. 200 |
In the case of Tripura, the professional tax has to be paid by eligible individuals once a month. Here is the professional tax slab for the state of Tripura:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 7,500 |
Not Applicable |
|
From Rs. 7,5001 to 15,000 |
Rs. 150 |
|
Above Rs. 15,001 |
Rs. 208 |
The professional tax is deducted every month in the state of West Bengal. Here is the professional tax slab for this state:
|
Monthly Salary |
Professional Tax Per Month |
|
Up to Rs. 10,000 |
Not Applicable |
|
From Rs. 10,001 to Rs. 15,000 |
Rs. 110 |
|
From Rs. 15,001 to Rs. 25,000 |
Rs. 130 |
|
From Rs. 25,001 to Rs. 40,000 |
Rs. 150 |
|
Above Rs. 40,001 |
Rs. 200 |
Most states and UTs in India make it mandatory for the individuals to pay professional tax on the salary earned by them. While in most states and UTs, the professional tax is deducted on a monthly basis, in certain states and UTs, the professional tax is deducted once a year or once in 6 months. For any tax preparation services, feel free to connect with Registrationwala - Your Tax Specialist!
Disclaimer: The Professional Tax Slabs mentioned in this blog post are subject to change, and we recommend you to check the latest professional tax slabs by checking the official Tax Department websites of such States/UTs. Since this blog is for educational purposes only, it is advised to consult with a tax specialist for any advice or assistance regarding professional tax.
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