Professional Tax According to Various States and UTs across India

  • May 15, 2024
  • Dushyant Sharma
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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. 

What is the Professional Tax?

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. 

Which States and Union Territories levy Professional Tax?

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:

  1. Karnataka
  2. Maharashtra
  3. Tamil Nadu
  4. Assam
  5. Kerala
  6. Meghalaya
  7. Tripura
  8. Bihar
  9. Jharkhand
  10. Madhya Pradesh
  11. West Bengal
  12. Manipur
  13. Mizoram
  14. Odisha
  15. Puducherry
  16. Sikkim
  17. Telangana
  18. Nagaland
  19. Chhattisgarh
  20. Gujarat
  21. Punjab

Which States and Union Territories do not levy Professional Tax?

Following are the Indian states and union territories where the professional tax is not applicable on individuals:

  1. Arunachal Pradesh
  2. Himachal Pradesh
  3. Delhi
  4. Haryana
  5. Uttar Pradesh
  6. Uttarakhand
  7. Andaman and Nicobar Islands
  8. Daman & Diu
  9. Dadra and Nagar Haveli
  10. Lakshadweep
  11. Jammu & Kashmir
  12. Rajasthan
  13. Chandigarh
  14. Goa

Professional Tax Slabs for Various States and Union Territories

Let’s take a look at the tax slabs for professional tax across various states and union territories in India.

Professional Tax Slab for Andhra Pradesh

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

Professional Tax Slab for Assam

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

Professional Tax Slab for Bihar

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

Professional Tax Slab for Chhattisgarh

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.

Professional Tax Slab for Gujarat

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

Professional Tax Slab for Jharkhand

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)

Professional Tax Slab for Karnataka

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

Source: Economic Times

Professional Tax Slab for Kerala

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

Professional Tax Slab for Madhya Pradesh

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.

Professional Tax Slab for Maharashtra

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.

Professional Tax Slab for Manipur

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

Source: Department of Taxes, Manipur

Professional Tax Slab for Meghalaya

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

Professional Tax Slab for Mizoram

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

Professional Tax Slab for Naaland

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

Professional Tax Slab for Odisha

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.

Professional Tax Slab for Puducherry

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

Professional Tax Slab for Punjab

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

Professional Tax Slab for Sikkim

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

Professional Tax Slab for Telangana

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

Professional Tax Slab for Tripura

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

Professional Tax Slab for West Bengal

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

Conclusion

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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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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