What is the Full Form of PT?
The full form of PT is Professional Tax and is collected by the state governments of India.
What is Professional Tax?
It is a direct tax levied on salaries and self-employed professionals like doctors, consultants, lawyers, CAs, etc.
The amount collected as PT can vary state-wise, but the maximum amount allowed to be collected in a financial year is Rs. 2500. For employees, their companies will take the responsibility of collecting professional tax and submitting it to the government. The self-employed professionals pay PT directly from their end.
Who is Required to Pay Professional Tax?
1. Salaried Individuals
Employees whose monthly earnings exceed the state-prescribed threshold are required to pay professional tax.
2. Self-employed professionals
Self-employed individuals such as doctors, chartered accountants, consultants, lawyers, etc, who earn income directly from their practice, must pay.
3. Business Owners/Traders
Individuals engaged in business and trade, like proprietors, partners, companies, etc., with turnover above state limits must pay the professional tax.
4. Employers (Corporate Bodies)
Companies, firms, & establishments must register and pay tax both on their business and for their employees.
5. Hindu Undivided Families (HUFs)
HUFs engaging in a profession or trade, exceeding the specific turnover threshold of the state, are liable to pay professional tax.
How is Professional Tax Calculated and Deducted?
- Professional Tax is calculated based on income slabs defined by each state government.
- Employers deduct the applicable amount monthly from employees’ salaries.
- The maximum annual limit is Rs. 2,500 under Article 276 of the Indian Constitution.
- Employers must deposit collected tax with the respective state authorities on time.
What is the Maximum Professional Tax Levied in Every State?
| State / UT | Max Professional Tax |
| Andhra Pradesh | ₹200 / month |
| Assam | ₹208 / month |
| Bihar | ₹2,500 / year |
| Chhattisgarh | ₹2,400 / year |
| Gujarat | ₹200 / month |
| Jharkhand | ₹2,500 / year |
| Karnataka | ₹200 / month |
| Kerala | ₹1,250 / half-year |
| Madhya Pradesh | ₹2,500 / year |
| Maharashtra | ₹200 / month (₹300 in Feb) |
| Manipur | ₹2,500 / year |
| Meghalaya | ₹2,500 / year |
| Mizoram | ₹208 / month |
| Nagaland | ₹208 / month |
| Odisha | ₹2,500 / year |
| Puducherry | ₹1,250 / half-year |
| Punjab | ₹200 / month |
| Sikkim | ₹200 / month |
| Tamil Nadu | ₹1,250 / half-year |
| Telangana | ₹200 / month |
| Tripura | ₹208 / month |
| West Bengal | ₹200 / month |
| Andaman & Nicobar Islands | Not Applicable |
| Arunachal Pradesh | Not Applicable |
| Chandigarh | Not Applicable |
| Dadra & Nagar Haveli & Daman & Diu | Not Applicable |
| Delhi | Not Applicable |
| Goa | Not Applicable |
| Haryana | Not Applicable |
| Himachal Pradesh | Not Applicable |
| Ladakh | Not Applicable |
| Lakshadweep | Not Applicable |
| Rajasthan | Not Applicable |
| Uttarakhand | Not Applicable |
| Uttar Pradesh | Not Applicable |
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