What is Professional Tax (India)?
Professional Tax (India) stands for State-Level Profession Tax.
Professional Tax (PT) in India is a state-level direct tax levied on salaried individuals and professionals under Article 276 of the Constitution of India.
Professional Tax (India) explained
Under Article 276(2) of the Indian Constitution, the maximum Professional Tax that any state government can levy on an individual is capped at ₹2,500 per financial year. Employers are statutory collecting agents responsible for deducting PT from monthly salaries and remitting it to state tax authorities.
PT rules, income slabs, and payment schedules vary significantly by state: Karnataka levies ₹200/month for gross salaries ₹15,000 and above; Maharashtra charges ₹200/month for 11 months and ₹300 in February (totaling ₹2,500/year); Telangana and Andhra Pradesh levy up to ₹200/month; Tamil Nadu levies bi-annual PT; whereas states like Delhi, Haryana, and Rajasthan levy no professional tax.
Multi-state employers in India must maintain separate PT registrations (PTRC - Professional Tax Registration Certificate) in each operating state and ensure automated slab calculation per employee work location.
Official source: Commercial Taxes Department
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