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What is Professional Tax?

Professional Tax is a tax on employment, which is levied by a state. The amount of professional tax that can be levied by a state is maximum up to Rs 2,500. Professional tax is usually deducted by the employer and deposited with the state government. Professional tax is allowed as a deduction from your salary income while filing your Income Tax Return. No Professional Tax can be charged in Union Territories that is why there is no professional tax in Delhi.

Who collects Professional Tax?

The employers collect professional tax from the monthly salaries of employees. It is then paid to the government. Employers will be penalised for not collecting or not paying the professional tax.

Slabs of Professional Tax :

Here are the slabs for different states and union territories in India.

Monthly salary Tax Payable
Up to Rs.7,500 for men Nil
Up to Rs.10,000 for women Nil
Rs.7,500 to Rs.10,000 Rs.175 per month
Rs.10,000 and above Rs.200 (except February, Rs.300 in the month of February)
Professional Tax in New Delhi: No Professional Tax can be charged in Union Territories that is why there is no professional tax in Delhi. The proposal of professional tax in New Delhi was rejected by the Standing Committee of the MCD and therefore professional tax is not levied in New Delhi.

Professional Tax in Karnataka:

Monthly salary Tax Payable
Up to Rs.15,000 Nil
More than Rs.15,000 Rs.200 per month

Professional Tax in Madhya Pradesh:

Monthly salary Tax Payable
Up to Rs.1.5 lakhs Nil
Rs.1.5 lakhs to Rs.1.8 lakhs Rs.125 per month
Rs.1.8 lakhs and above Rs.212 per month

Professional Tax in Tamil Nadu:

Half yearly salary Tax Payable (Per 6months)
Up to Rs.21,000 Nil
Rs.21,001 to Rs.30,000 Rs.100
Rs.30,001 to Rs.45,000 Rs.235
Rs.40,001 to Rs.60,000 Rs.510
Rs.60,001 to Rs.75,000 Rs.760
Rs.75,001 and above Rs.1095

Professional Tax in Andhra Pradesh:

Monthly salary Tax Payable
Up to Rs.15,000 Nil
Rs.15,001 to Rs.20,000 Rs.150 per month
Above Rs.20,000 Rs.200 per month

Professional Tax in Gujarat:

Monthly salary Tax Payable
Up to 5,999 Nil
6,000 to 8,999 Rs.80 per month
9,000 to 11,999 Rs.150 per month
12,000 and above Rs.200 per month

Professional Tax in Odisha:

Monthly salary Tax Payable
Up to Rs.5,000 Nil
Rs.5,001 to Rs.6,000 Rs.30 per month
Rs.6,001 to Rs.8,000 Rs.50 per month
Rs.8,001 to Rs.10,000 Rs.75 per month
Rs.10,001 to Rs.15,000 Rs.100 per month
Rs.15,001 to Rs.20,000 Rs.150 per month
Above Rs.20,000 Rs.200 per month

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