Professional Tax (PT) – A brief Introduction
3 minutes read

Professional Tax (PT) – A brief Introduction

When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”. PT or Professional Tax, as it is called, is a tax paid to the state government.

If you are looking to find out what PT is, you are in the right place. In this post, we will be discussing about Professional Tax.

Every employee has to pay PT based on his/her earnings. The employer deducts the tax from the salary and remits to state government account every month in a specified format.

Professional tax is a state-specific tax. Each state will have separate PT rates. Also, not all states collect or impose Professional Tax. First, let us take a look at that states which impose PT.

States which impose PT or Professional Tax

States which collect or impose PT are:

  • Andhra Pradesh
  • Maharashtra
  • Gujarat
  • New Delhi
  • Karnataka
  • Tamil Nadu
  • Madhya Pradesh
  • West Bengal

Know more – Professional tax for different states 

Who deducts PT?

If you are a professional working under an employer, then you need not have to worry about anything. It is upto the employer to deduct PT and pay it to the state government.

If the employer fails to deduct and pay the Professional Tax, they will have to pay penalties.

However, if you are not working for anyone then you are liable to pay the professional tax by yourself.

In case of late payment or non-payment of Professional Tax, the penalty will be 10% of the taxable amount.

What is the Amount of Professional Tax to be paid?

The maximum amount of PT to be paid per annum is INR 2,500. PT also depends on the type of profession and the monthly income of an individual.

We hope that this post was able to answer your questions about PT.

Any more questions? Let us know in the comment section below.

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10 Comments

  • Is professional tax applicable for an employee if the company is registered in Delhi but the employee is working in Bihar ?

    • Yes.

  • I got below 14 k salary but my pt amount is 200 ,can you tell me can i got this deducted pt amount ,

  • Please let me know which job profiles comes under PT

    • All kinds of jobs do come under PT.

  • My salary is 17k. But they deducted 1152. Please let me know,why they deducted this much.

    • Please ask with your company HR.

  • I Am entrepreneur please tell what is Meaning salary for Professional Tax 01. Basic + DA > Rs 15,000/- we need to Deduct PT or 02. Basic+ DA- Employee Contribution ESI & PF > Rs 15,000/- we need to Deduct PT or 03. Basic + DA+Employer Contribution OF ESI & PF > Rs 15,000/- Please Calrify What is Meaning of salary for Purpose of PT

    • Salary for PT is the gross salary > Rs 15000/- per month i.e. the whole salary before any deduction.

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