Professional Tax
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The next time you receive your payslip, take a minute to study the break-up of the deductions; you may come across the head "professional tax". Don't confuse it with income tax. Get enrolled/registered under Professional tax and become tax compliant with GST Suvidha Centers Now.

Professional Tax

Professional tax is a tax that is levied by the state government and applies to the income you earn through employment. You can often find the deduction for the same on your salary slip each month. Professional tax one source of revenue for the government and is used towards bettering the services for professionals in that state. Thus, it is essential for every employer to deduct professional tax on salary, although there are a few exemptions related to this.


Professional tax in India varies from state to state. The maximum amount of professional tax cannot exceed Rs.2,500 annually.

Who is exempted from professional tax?

 Parents/guardians of mentally or permanently disabled children

 Members of forces mentioned in the Army Act, 1950, serving the state

 Disabled persons

 Senior citizens above 65 years of age

 Female agents of Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings

Professional Tax Registration and Returns

 Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. Professional tax needs to be deducted from the salary or wages paid amount. Application for the Registration Certificate should be made to the assesses state tax department within 30 days of employing staff for his business. If the assesses has more than one place of work, then an application should be made separately to each authority concerning the place of work under the jurisdiction of that authority.

 If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).

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