Professional Tax in India: state-wise slabs, deadlines, and what every employer needs to register

Professional Tax (PT) is a state-level levy on employment income, deducted from employees and remitted to the state government by the employer. Unlike TDS, EPF, or ESI — centrally administered under national legislation — Professional Tax is governed independently by each state that imposes it, with its own slab rates, salary thresholds, filing deadlines, and registration requirements. For multi-state employers, PT creates a separate payroll compliance track per state with no unified filing mechanism.

Which States Levy Professional Tax

States with PT: Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, West Bengal.

Notable states without PT: Delhi, Haryana, Rajasthan, Uttar Pradesh, Punjab — meaning no PT deduction for employees resident there.

The Constitutional Maximum

Article 276 of the Indian Constitution caps Professional Tax at INR 2,500 per individual per year regardless of state. States structure their slabs to approach this maximum.

State-Wise Slab Rates

Maharashtra (highest volume for international operators)

Monthly gross salary	Monthly PT
Up to INR 7,500	Nil
INR 7,501 to 10,000	INR 175
Over INR 10,000	INR 200 (INR 300 in February)

The February exception (INR 300) ensures the annual total reaches INR 2,400. A flat INR 200 for all 12 months underpays by INR 100/employee in February.

Karnataka

Monthly gross salary	Monthly PT
Up to INR 15,000	Nil
INR 15,001 to 25,000	INR 150
Over INR 25,000	INR 200

Tamil Nadu

PT is levied semi-annually. Approximate monthly equivalent:

Monthly gross salary	Approximate monthly PT
Up to INR 21,000	Nil
INR 21,001 to 30,000	INR 135
INR 30,001 to 45,000	INR 315
Over INR 75,000	INR 1,250

Verify current Tamil Nadu slabs — updated in recent years.

West Bengal

Monthly gross salary	Monthly PT
Up to INR 8,500	Nil
INR 8,501 to 10,000	INR 90
INR 10,001 to 15,000	INR 110
INR 15,001 to 25,000	INR 130
INR 25,001 to 40,000	INR 150
Over INR 40,000	INR 200

Gujarat

Monthly gross salary	Monthly PT
Up to INR 12,000	Nil
Over INR 12,000	INR 200

Kerala

Graduated from INR 20/month to INR 208/month across 9 salary bands starting from INR 2,000. Verify the current slab via the Kerala Commercial Taxes Department — one of the most granular structures in India.

Employer Registration Requirements

Every employer deducting PT must register with the relevant state authority before any deductions begin. Registration is state-specific — Maharashtra and Karnataka registrations are separate.

Maharashtra: Register via mahagst.gov.in. Two certificates are issued: an Enrollment Certificate (EC — for the employer's own PT liability) and a Registration Certificate (RC — for deducting from employees). Both are required before processing.

Karnataka: Register via ctax.kar.nic.in under the Karnataka Tax on Professions, Trades, Callings and Employments Act 1976.

Typical registration documents across states: certificate of incorporation, company PAN, proof of business premises, director/signatory ID proofs, bank account details.

Remittance Deadlines

State	Frequency	Deadline
Maharashtra	Monthly (if annual liability >INR 50,000)	15th of following month
Karnataka	Monthly	20th of following month
Tamil Nadu	Semi-annually	15 September and 15 March
West Bengal	Monthly	21st of following month
Gujarat	Monthly	15th of following month
Kerala	Quarterly	Within 15 days of quarter-end

PT as a Tax Deduction

PT is deductible for the employee under Section 16(iii) of the Income Tax Act — it reduces taxable income before TDS is computed. Employers must deduct PT from gross salary before computing TDS. The employer's own PT enrollment payment is also deductible as a business expense.

Common Mistakes

1. Applying Maharashtra PT rates to employees in other states. Karnataka, Tamil Nadu, West Bengal, and Gujarat all have different slabs and schedules. Applying Maharashtra's slab to a Bengaluru-based employee produces incorrect deductions.

2. Missing the Maharashtra February INR 300 month. Flat INR 200 for 12 months = INR 2,400. February is INR 300 — annual total = INR 2,500. Engines without a month-specific exception underpay by INR 100/employee/year.

3. Not registering in each state before deducting. Deducting PT without a state Registration Certificate means the employer is collecting a levy they are not authorised to collect.

4. Not deducting PT before computing TDS. PT is deductible under Section 16(iii). Computing TDS on gross salary without netting off PT consistently overwitholds income tax.

5. Missing offline remittance requirements for states with limited digital infrastructure. Not all PT regimes support online filing. Some states require bank challan payments and physical or basic electronic returns — operators who assume full digital coverage miss these.

How Cadana Supports Indian Payroll Compliance

Managing state-specific PT registrations, applying the correct slab per employee's state, handling the Maharashtra February anomaly, deducting PT before TDS computation, and remitting on each state's specific deadline — Cadana's global payroll tax engine handles Professional Tax across all applicable Indian states at the API layer.

Book a demo at cadanapay.com/book-demo to see how it works in practice.

Sources and References

Maharashtra State Tax on Professions Act 1975 — Maharashtra GST portal
Karnataka Tax on Professions Act 1976 — Karnataka Commercial Tax portal
Tamil Nadu Tax on Professions Act 1992
West Bengal State Tax on Professions Act 1979
Constitution of India — Article 276 (INR 2,500 annual maximum)
Income Tax Act 1961 — Section 16(iii) (PT deductibility)

Slab rates and deadlines current as of April 2026. PT slabs are amended by state budgets — verify each state's current slab via the relevant state Commercial Tax Department before deducting.