Professional Tax in India — State-wise Slabs
Professional Tax (PT) is a state-level tax on salaried employees. It is deducted by employers monthly and remitted to the state government. The constitutional maximum is ₹2,500/year.
Which States Levy PT?
Maharashtra: ₹200/month (₹300 in February = ₹2,500/year) for salary above ₹10,000. Karnataka: ₹200/month for salary above ₹15,000. West Bengal, Andhra, Telangana: ₹150–200/month depending on slab. States with NO PT: Delhi, UP, Rajasthan, Haryana, Himachal Pradesh, Uttarakhand, most of North India.
Is PT Deductible for Income Tax?
Yes — PT paid is fully deductible from gross salary under Section 16(iii) of the Income Tax Act. This applies under both Old and New Tax Regimes. Your employer should reflect this in Form 16.
Worked Example
Rohan in Mumbai earns ₹80,000/month. His employer deducts ₹200/month PT (₹300 in February = ₹2,500/year). At 20% income tax bracket, the PT deduction saves Rohan approximately ₹500 in income tax per year.
Common Mistakes
- Assuming PT applies everywhere: Delhi, UP, Rajasthan, Haryana — major states with no PT. Always check your specific state.
- Not claiming as deduction: PT is deductible under Section 16(iii). Verify your employer is accounting for this in TDS and Form 16.