Professional Tax - Tax Slab for Karnataka, MP, TN

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. Some states and union territories 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 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 Applicability

Professional Tax is applicable for the below-mentioned individuals and entities:

  • Companies
  • Firms
  • LLPs
  • Corporation
  • Societies
  • HUF
  • Associations
  • Clubs
  • Legal practitioners such as solicitors
  • Contractors
  • Architects
  • Engineers
  • Insurance agents
  • Chartered Accountants
  • CS
  • Surveyors
  • Tax consultants
  • Management consultants
  • Medical representatives such as doctors, medical consultants, and dentists

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 Rs.7,500 for men Nil
Up to Rs.10,000 for women Nil
Rs.7,501 to Rs.10,000 Rs.175
Rs.10,000 and above Rs.200 for 12 months and Rs.300 for the last month

Professional Tax in Karnataka

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to Rs.14,999 Nil
More than 15,000 Rs.200

Professional Tax in West Bengal

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

Professional Tax in Madhya Pradesh

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to Rs.18,750 Nil
Rs.18,751 to Rs.25,000 Rs.125
Rs.25,001 to Rs.33,333 Rs.167
Rs.33,334 and above Rs.208 for 11 months and Rs.212 for the last month

Professional Tax in Tamil Nadu

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to Rs.3,500 Nil
Rs.3,5001 to Rs.5,000 Rs.22.5
Rs.5,001 to Rs.7,500 Rs.52.5
Rs.7,501 to Rs.10,000 Rs.115
Rs.10,001 to Rs.12,500 Rs.171
Above Rs.12,500 Rs.208

Professional Tax in Andhra Pradesh

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

Professional Tax in Gujarat

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

Professional Tax in Odisha

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to Rs.13,304 Nil
Rs.13,305 to Rs.25,000 Rs.125
Rs.25,001 and above Rs.200 for 12 months and Rs.300 for the last month

Exemption in Professional Tax

The below-mentioned individuals need not pay Professional Tax:

  • Individuals who run educational institutions that teach classes up to twelfth standard.
  • Individuals in the Central Para Military Force (CPMF).
  • An individual who has one child and has undergone a sterilization operation. However, the relevant documents must be submitted.
  • Any ex-serviceman who comes under SI No.1 (Schedule)
  • Any handicapped individual who has at least a 40% disability. However, the relevant certificate must be submitted.
  • Individuals who have a permit for a single three-wheeler or a single taxi to carry goods.
  • Deaf, dumb, and blind individuals who are earning a salary.
  • Civilian non-combatant and combatant members who are part of the Armed Forces. However, the Army Act must govern the Armed Forces.
  • Foreign technicians who have been employed by the state.
  • All philanthropic and charitable hospitals that are present in places that come under below taluk level.

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

FAQs on Professional Tax

  1. I have some queries related to my professional tax. What should I do?

    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.

  2. Why are professional tax different for different states and union territories in Inda?

    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.

  3. Why is professional tax not applicable for Union Territories?

    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.

  4. How to fill the Professional Tax Application form?

    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.

  5. Is it mandatory to pay professional tax?

    If you are a salaried individual, then it is compulsory for you to pay the professional tax.

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