Professional Tax - Tax Slab for Karnataka, MP, TN Last Updated : 06 Apr 2020

If you ever pay close attention to your payslips, you will notice that there is a deduction every month under the category of ‘Professional Tax’. This deduction takes place along with HRA, basic salary, and conveyance charges (if applicable).

What is Professional Tax?

Professional tax is a tax that is levied by a state government on all individuals who earn a living through any medium. This should not be confused with the definition of professionals that indicates people such as doctors. This is a tax that is to be paid by every single earning individual. The calculation and amount collected may differ from one state to another but it has a limit of Rs. 2500 per year.

Why is it different for different people?

Since it is a tax that is levied by the state government, it tends to differ from one state to another. Each state has a slab that it declares and the professional tax is deducted based on these slabs. There are some states and union territories that do not charge professional tax too. How it is paid is by dividing the annual professional tax due into 12 equal installments that are paid every month, except the one paid in February which is higher than the other months.

There may also be situations where sources of income falling under different sectors will be also be liable for a separate tax. For example, in some states, a person running a business in the transport sector may be required to pay a professional tax of about Rs. 50 per annum for each of the vehicles owned and it may be subject to a cap of Rs. 1,000 per annum.

Who Collects Professional Tax?

Professional tax is collected by the employers from the monthly salaries. It is then paid by them to the government failing which they can have penalties imposed on them for not collecting or failing to pay the professional tax. If you are not working for anyone then you are liable to pay the professional tax yourself.

For professionals not working with an employer they can register for it by applying through a form. Once the form is received, a registration number will be issue to the individual. Payment of the professional tax can be made under these registration numbers at banks. It is also worth noting that, in some states, the government also provides rebates on the taxes if it is paid in a lump sum for a few years together so it is worth enquiring about the rules of professional tax in your state.

Professional Tax Slabs in Various States

Since each state tends to have its own slab for professional taxes, here are the tax slabs for various states and union territories in India.

Professional Tax in Maharashtra:

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to 7,500 for men Nil
Up to 10,000 for women Nil
7,500 to 10,000 175
10,000 and above 200 (except February when its 300)

Professional Tax in Karnataka:

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to 15,000 Nil
More than 15,000 200

Professional Tax in West Bengal:

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to 8,500 Nil
8,501 to 10,000 90
10,001 to 15,000 110
15,001 to 25,000 130
25,001 to 40,000 150
More than 40,000 200

Professional Tax in Madhya Pradesh:

Annual salary (in Rs.) Tax (in Rs. Per month)
Up to 1.5 lakhs Nil
1.5 lakhs to 1.8 lakhs 125
1.8 lakhs and above 212

Professional Tax in Tamil Nadu:

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

Professional Tax in Andhra Pradesh:

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to 15,000 Nil
15,001 to 20,000 150
Above 20,000 200

Professional Tax in Gujarat:

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to 5,999 Nil
6,000 to 8,999 80
9,000 to 11,999 150
12,000 and above 200

Professional Tax in Odisha:

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

Professional Tax in different states across India

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


  1. I have some queries related to my professional tax. What should I do?
  2. In case of any query related to your professional tax, you can get in touch with the control room which operates 24x7 by calling on any one of the numbers 080-22208401/080-22342689/080-22252258. An official from the office will help you with your query.

  3. Why are professional tax different for different states and union territories in Inda?
  4. The professional tax is levied by the state government and differs since every state has its own slabs that it declares. Hence, the professional tax differs from one state to another.

  5. Why is professional tax not applicable for Union Territories?
  6. Union Territories are generally small regions and is governed by the central government. Since these regions are small, they tend to generate lower revenue and hence they are exempted from paying the professional tax.

  7. How to fill the Professional Tax Application form?
  8. Visit the official website of Professional Tax i.e. and on the left-hand side of the page, click on ‘Enrolment Application’. You will be directed to a new page, where you will have to select ‘new’ if you are paying the professional tax for the first time, or on ‘enrolled’ if you have previously filed the tax. Enter the financial year, the professional tax office, the type of return, business status, and class of person. Click on ‘Next’.

    You will then have to enter other necessary details as asked for. The final step will require you to make the payment which can be done via credit/debit card or by net banking. Once the payment is done, you will receive a receipt which you must download and keep for future reference.

  9. Is it mandatory to pay professional tax?
  10. If you are a salaried individual, then it is compulsory for you to pay the professional tax.

News About Professional Tax

  • Professional tax to be levied for individuals who earn Rs.50,000 a month

    On Friday, the South Delhi Municipal Corporation (SDMC) made a decision to levy professional tax on individuals earning a gross monthly income of Rs.50,000. This move has been made after four years of rejecting the commissioner’s proposal.

    According to this new measure, everyone with an income up to Rs.50,000 will have to pay an annual professional tax of Rs.1,800. Those earning over Rs.50,000 will be charged Rs.2,400 annually. It was also added that even if the person does not live in the SDMC areas, he/she will still be charged. However, traders are exempt from this tax.

    3 Mar 2020

  • Bengal Finance Minister Proposes No New Taxes For 2016-17 Budget

    Finance Minister of West Bengal, Amit Mitra, proposed on Friday that no new taxes would be levied while hiking the Plan Expenditure to Rs 57,905 crore. The proposal was mooted following the actual Plan Expenditure had surpassed the expected figure last year. He stated that the aim of the Plan Expenditure hike for 2016-17 was to continue to work for the financial and social development of the people of Bengal, especially for those in financially and socially backward sectors. The Finance Minister also proposed that the exemption limit for professional tax be raised from Rs. 8.500 per month to Rs. 10,000 per month in order to give some sort of relief to employees and wage earners.

    4 July 2016

  • Diamond Units threaten to shut down due to Professional Tax Campaign

    In a response to the campaign started by the Surat Municipal Corporation (SMC) to collect professional tax, small diamond producers and manufacturers in Varachha, Katargam and Mahidharpura have warned that their units will shut shop in direct opposition to the move. With twenty four units already shut down in Varachha over the last few days after receiving notices, the diamond manufacturers have held talks with the Surat Diamond Association (SDA) and the Gems and Jewellery Export Promotion Council (GJEPC) to come to a resolution regarding the professional tax issue. According to sources, the SMC has targeted a collection of Rs 75 crore in professional taxes solely from the diamond industry.

    29 March 2016

  • Possible Revision of Professional Tax in Karnataka

    In purview of the tax rules that have been active, the Chief Minister of Karnataka, Siddaramaiah proposed an increase in the professional tax ceiling to the finance minister Mr. Arun Jaitley.

    As per Siddaramaiah, professional tax ceiling of INR 2500 annually is too less, and has remained unchanged since 28 years. The current proposal, if accepted might hike the professional tax to INR 12000 annually.

    17 March 2016

  • New Professional Taxes by South Delhi Municipal Corporation to cover deficit

    Since its inception three years ago, the South Delhi Municipal Corporation (SDMC) has declared its first ever budget deficit. The SDMC aims to cover this deficit by proposing more taxes to be levied on the people, instead of discovering why there was suddenly a deficit in a civic body that was running profitably for a long time. The SDMC commissioner Punit Kumar Goyal also plans to cut old-age pensions in FY 2016-2017.

    Even despite the proposed 1 to 2 percent hike in property taxes, and the imposition of professional tax, the proposed budget estimates for FY 2016-2017 show a Rs.200 crore deficit.

    15 December 2015

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