Professional Tax in India — State-Wise Rates, Registration, Filing (2026)
Professional tax in India — Maharashtra, Karnataka, West Bengal, Tamil Nadu, AP, Telangana, Gujarat. State-wise rates, registration, monthly filing.
Professional Tax is a state-level tax on income earned by professionals, traders, and employees. Not all states have it. In this guide, we cover state-wise rates, registration, and monthly filing.
What is Professional Tax?
Professional Tax is a direct tax levied by the state government on individuals earning income from salary, profession, trade, or calling. It is governed by the respective state's Professional Tax Act. Maximum cap: ₹2,500/year (as per the Constitution of India).
States That Have Professional Tax
- Maharashtra
- Karnataka
- West Bengal
- Tamil Nadu
- Andhra Pradesh
- Telangana
- Gujarat
- Kerala
- Madhya Pradesh
- Odisha
- Punjab
- Assam
- Chhattisgarh
- Jharkhand
- Bihar
- Meghalaya
- Manipur
- Mizoram
- Nagaland
- Tripura
- Sikkim
- Goa
- Puducherry
States That Do NOT Have Professional Tax
- Delhi (no PT, but employer deducts 0 for record)
- Haryana
- Rajasthan
- Uttar Pradesh
- Uttarakhand
- Himachal Pradesh
- Jammu & Kashmir
State-Wise Professional Tax Rates (Salary)
| State | Monthly Salary | PT / Month |
|---|---|---|
| Maharashtra | > ₹7,500 (men) | ₹200 (₹300 in Feb) |
| Maharashtra | > ₹10,000 (women) | ₹200 (₹300 in Feb) |
| Karnataka | > ₹15,000 | ₹200 |
| Karnataka | All others | ₹0 |
| West Bengal | > ₹10,000 | ₹200 |
| Tamil Nadu | > ₹3,500 | ₹180-₹208 (slab) |
| Andhra Pradesh | > ₹15,000 | ₹200 |
| Telangana | > ₹15,000 | ₹200 |
| Gujarat | > ₹5,999 | ₹150-₹200 (slab) |
Professional Tax Registration Process (Maharashtra)
Step 1: Get PTEC (Enrollment Certificate)
Apply for Professional Tax Enrollment Certificate (PTEC) on the Maharashtra PT portal. Required: PAN of employer, business address proof, salary register.
Step 2: Get PTRC (Registration Certificate)
Apply for Professional Tax Registration Certificate (PTRC) — authorises you to deduct PT from employees. Required: PAN, address, salary register, authorised signatory details.
Step 3: File Monthly Return + Pay
File monthly return + pay via challan on the PT portal. Due: last day of the next month. Late penalty: 10% of the PT due.
Professional Tax for Self-Employed / Professionals
Self-employed professionals (doctors, lawyers, CAs, consultants) must pay professional tax on their own income. The amount varies by state. Most states cap it at ₹2,500/year. Payment: half-yearly or annual depending on the state.
Deduction under Section 16(iii)
Professional Tax paid (by employee or self-employed) is deductible from gross total income under Section 16(iii) of the Income Tax Act. Maximum: ₹2,500/year.
Frequently Asked Questions
Q: Is professional tax refundable if you work in 2 states?
A: If you work in 2 states, you may have to pay professional tax in both. Some states have a reciprocal arrangement. Most states: pay in the state where you are employed on the date of deduction.
Q: What is the difference between professional tax and TDS?
A: TDS: Tax deducted at source on specific payments (salary, rent, interest, professional fees). PT: State-level tax on income. Both are deducted from salary. PT is typically ₹200/month in most states.
Q: What is the penalty for non-payment of PT?
A: Penalty varies by state. Maharashtra: 10% of the PT due + prosecution. Karnataka: ₹100/day for late filing. West Bengal: ₹100/day for late filing.