Professional Tax in India: Rates, Deductions, Due Dates & Compliance (2025-26)

Your salary slip may contain a small monthly deduction based on your income, alongside other deductions. It is a professional tax that your employer pays to the state government. Each state’s professional tax laws vary, and some states, like Arunachal Pradesh, do not impose this tax altogether.

 

Understanding this type of tax is crucial for both an employee and employer to comply with local laws and avoid penalties. As an employer, you are responsible for deducting and remitting the tax. As an employee, you need to know your legal obligations.

It is a state-imposed tax on income earned from various professions, trades, or employment. Despite its name, it applies to everyone, not just professionals. You may be liable to pay this tax if you earn money – whether as an employee, freelancer, or business owner.

 

Liability for professional tax depends on your income. If your earnings exceed a certain state-specified threshold, you will need to pay it. The amount varies by state, but the maximum annual limit is approximately ₹2,500. This tax is typically shown as a deduction on your payslip.

Before diving into the details of professional tax, it is essential to distinguish it from income tax. Understanding this difference will help clarify your financial obligations. Here are some of the major differences:

Aspect	Professional Tax	Income Tax
Governing Body	State Government	Central Government
Legal Framework	Article 276 of the Indian Constitution	Entry number 82 of the Union list of the Indian Constitution mentions it as mandatory for all eligible citizens
Exemption Limit	Maximum of ₹2,500 (per the Income Tax Act)	Maximum exemption for individuals, HUFs, under 60 years: INR 2,50,000
Payment Frequency	Paid in 12 monthly instalments, quarterly, half-yearly, or annually based on the state	To be paid once a year, but advance tax may be paid in instalments
Filing Due Date	Varies by state	31st July for individuals and HUFs whose accounts are not audited
Eligibility	Individuals engaged in professional services or business whose income crosses a specific threshold	Tax is due if income exceeds the exemption limit; all individuals must pay, regardless of service provision

Many states in India impose a professional tax on individuals and businesses. This tax is typically levied by state governments and applies to salaried employees, self-employed professionals, traders, and companies, depending on the specific rules in each state. While the maximum amount of professional tax that can be charged in India is capped at ₹2,500 per year as per the Constitution, the actual rates and slabs vary across states. 

 

Here’s a list of some of the states that levy this tax, the tax slabs, and the range of tax:

Name of State	Professional Tax Slabs (₹)	Range of professional tax (per month) (₹)
Andhra Pradesh	Above ₹15,001	₹150 to ₹200
Karnataka	Above ₹15,000	₹200
Maharashtra	₹7,501 to above ₹10,000	₹175 to ₹200
Maharashtra	₹7,501 to above ₹10,000	₹175 to ₹200
Tamil Nadu	₹21,001 to above ₹75,000	₹20 to ₹208
Assam	₹10,001 to above ₹25,000	₹150 to ₹208
Kerala	₹2,000 to above ₹20,833	₹20 to ₹208
Meghalaya	₹4,167 to above ₹41,667	₹16.5 to 208
Bihar	₹25,001 to above ₹83,333	₹100 to ₹208
Jharkhand	₹25,001 to above ₹83,333	₹100 to ₹208
Gujarat	Above ₹12,000	₹200
Madhya Pradesh	₹18,751 to above ₹33,334	₹125 to ₹208
Madhya Pradesh	₹18,751 to above ₹33,334	₹125 to ₹208
West Bengal	₹10,001 to above ₹40,001	₹110 to ₹200
West Bengal	₹10,001 to above ₹40,001	₹110 to ₹200
Manipur	₹50,001 to above ₹75,000	₹100 to ₹208
Mizoram	₹5,001 to above ₹15,001	₹75 to ₹208
Mizoram	₹5,001 to above ₹15,001	₹75 to ₹208
Odisha	₹13,333 to above ₹25,000	₹125 to ₹200
Puducherry	₹8,333 to above ₹41,667	₹125 to ₹208
Sikkim	₹20,001 to above ₹40,001	₹125 to ₹200
Telangana	₹15,001 to above ₹20,000	₹125 to ₹200
Nagaland	₹4,001 to above ₹12,001	₹35 to ₹208
Chhattisgarh	₹8,333 to above ₹20,833	₹130 to ₹208
Meghalaya	above ₹12,000	₹200

Disclaimer: The Professional Tax rates and slabs mentioned for different states are indicative and subject to change as per the respective state government notifications and amendments.

Your professional tax as a salaried individual is calculated on your gross monthly income according to the slab rate of the state where you are employed. For example, if you work in Telangana and earn ₹25,000, your monthly tax will be ₹200.

Staying informed about these deadlines is essential to ensure timely payment and avoid penalties. Each state government sets specific due dates for the payment of professional tax, which may vary based on the type of taxpayer—such as salaried individuals, self-employed professionals, or registered businesses. Missing these deadlines can result in financial penalties, interest charges, or even legal notices, depending on the state’s regulations. And hence regular tracking of the applicable due dates, especially after registration or when expanding operations to a new state, can help maintain compliance and avoid disruptions in business or employment.

Below is a table summarising the due dates for professional tax across different states:

State	Periodicity	Professional Tax Payment Due Date
Andhra Pradesh	Monthly	10th of every month
Assam	Monthly	28th of every month
Bihar	Annually	30th November of every month
Gujarat	Monthly	15th of every month
Jharkhand	Annually	31st October of every month
Karnataka	Monthly	20th of every month
Kerala	Half-yearly	31st August & 28th February
Madhya Pradesh	Monthly	10th of every month
Manipur	Annually	30th March
Meghalaya	Monthly	28th of every month
Mizoram	Annually	30th June
Pondicherry	Half-yearly	Last date of every month
Odisha	Monthly	30th June and 31st December
Sikkim	Quarterly	The 31st of July, the 31st of October, the 31st of January, and the 30th of April
Tamil Nadu	Monthly	30th September and 31st March
Telangana	Monthly	10th of every month
West Bengal	Half-yearly	21st of every month

Disclaimer: The information provided in the table below is based on publicly available data from respective state government sources as of the latest update. Due dates and periodicity of professional tax payments may vary depending on the type of taxpayer (employer, employee, or self-employed) and any updates in state regulations.

Failing to pay professional tax by the due date can lead to significant consequences, including penalties and fines. Check out what you need to pay when you miss the due date for professional tax payments:

Nature of default	Penalty
Late filing of professional tax return	₹1,000
Late payment of professional tax dues	Interest @1.25% - 2% per month Penalty @10% on total tax amount

Disclaimer: The penalty details provided in the table above are indicative and based on standard provisions outlined by various state professional tax laws. Actual penalty amounts and interest rates may differ depending on the specific state regulations, duration of delay, and taxpayer category. 

Employers and the Commercial Tax Department are responsible for deducting the professional tax from employees and submitting it to the respective state government. If you are a salaried individual, your employer will collect and remit the professional tax on your behalf within the specified timeframe.

Since professional tax is payable to the state, the online payment process varies by state. However, the general requirements and steps are similar. Below is a simplified example of how to paying professional tax online in the state of Karnataka:

1. Locate the Official State Tax Portal

Search for the official Professional Tax or Commercial Taxes Department website of your state by using keywords like “Professional Tax e-payment” along with your state or city name.

 

2. Register or Log In 

• If you are a new taxpayer or employer, complete the registration/enrollment process using your PAN, GSTIN, or Professional Tax Registration Number (PTR No.).
• If already registered, log in using your credentials (username, password, OTP, etc.).

3. Access the Payment Section

Navigate to the section for Professional Tax payments or e-payment. This may be labeled as “Employer Login,” “Taxpayer Login,” or “Make Payment.”

4. Select Payment Type

Choose the appropriate payment type, such as “Registered Employer,” “Self-Employed,” or “Professional Tax Payment.”

5. Enter Identification Details

Provide your Professional Tax Registration Number, company/firm name, or other required identification details to retrieve your account.

6. Specify Payment Period

Select the month, quarter, or financial year for which you are making the payment.

7. Enter Tax Amount and Penalties (if any)

Input the applicable Professional Tax amount based on your state’s slab rates. Include any late fees or penalties if applicable.

8. Verify and Confirm Details

Review all entered information carefully to ensure accuracy before proceeding.

9. Proceed to the Payment Gateway

You will be redirected to a secure payment gateway or bank portal. Enter your bank or card details as required and authenticate the transaction.

10. Complete the Payment

Finalise the payment using net banking, debit/credit card, UPI, or other available modes.

11. Download and Save Payment Receipt/Challan

After successful payment, download, print, or save the payment receipt or challan for your records and future reference.

12. Check Payment Status and Compliance

Verify that the payment is reflected in your account on the tax portal. File any required returns or declarations as per state guidelines.

Disclaimer: The steps outlined above are provided as a general example to illustrate the typical process of paying Professional Tax online in various Indian states. The exact procedures, portal interfaces, payment methods, deadlines, and required details may vary depending on the specific state government and its official website. Readers are advised to consult the official Commercial Taxes or Professional Tax Department website of their respective state for the most accurate, up-to-date, and detailed instructions.

 

Use Case: How Professional Tax Affects Take-Home Salary for a Bengaluru IT Professional

Ravi, a software engineer working in Bengaluru, earns a monthly salary of ₹90,000. His employer deducts Professional Tax of ₹200 every month as per Karnataka’s slab rates. Although ₹200 may seem small compared to his gross salary, this deduction reduces his take-home pay slightly each month.

When Ravi files his Income Tax return, he claims this Professional Tax amount as a deduction under Section 16(iii), reducing his taxable income and overall tax liability.

Key Takeaways:

• Professional Tax is a mandatory deduction by the employer and varies by state; in Karnataka, it is ₹200 for salaries above ₹20,000.

• Even small monthly deductions add up annually and affect take-home pay.

• Professional Tax paid is deductible from taxable income under Income Tax laws, providing some relief.

• Understanding state-specific slabs helps employees anticipate deductions and plan finances better.

Certain individuals do not need to pay professional tax based on specific criteria. Here is a list of those eligible for these benefits:

• Women working as agents under the Mahila Pradhan Kshetriya Bachat Yojana
• Individuals over 65 years of age
• Members of the armed forces (Army, Air Force, Navy)
• Parents of children with disabilities
• Individuals with mental or physical disabilities, such as blindness or deafness
• Temporary workers (Badli workers) in factories
• Foreign individuals employed by the state
• Those running educational institutes for classes up to 12th standard or pre-university level
• Charitable hospitals located below the taluk level