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Professional Tax in India - Calculate Professional Tax Rates & Compliances

  • Highlights

  • Professional tax is issued by state government

  • Its rate is subject to your state’s regulation

  • Professional tax has exemptions

  • Professional tax calculation must be checked by a C.A.

As a working professional, you are sure to be well-versed with having to pay tax on your income. While you may have noticed that your employer deducts professional tax, do you know what it is? Professional tax is not the same as income tax, but it an important component of your tax obligation. So, understanding it will help you file your taxes more easily and understand the deductions too.

What is professional tax?

Professional tax is a tax that is levied by the state government and applies to 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.

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Which states impose professional tax and what are the tax slabs?

Take a look at the list of states that impose professional taxes and their tax slabs per month.

State Income per Month Tax Rate/Tax Amount (per month)
Andhra Pradesh Less than Rs. 15,000 Nil
Rs. 15,000 to less than Rs. 20,000 Rs. 150
Rs. 20,000 and above Rs. 200
Gujarat Up to Rs. 5999 Nil
Rs. 6000 to Rs. 8999 Rs. 80
Rs. 9000 to Rs. 11999 Rs. 150
Rs 12000 and above Rs. 200
Karnataka Up to Rs. 15,000 Nil
Rs. 15,001 onwards Rs. 200
Kerala (Half yearly income slabs and half yearly tax payment) Up to Rs.11,999 Nil
Rs.12,000 to Rs.17,999 Rs.120
Rs.18,000 to Rs. 29,999 Rs.180
Rs.30,000 to Rs. 44,999 Rs.300
Rs.45,000 to Rs. 59,999 Rs.450
Rs.60,000 to Rs. 74,999 Rs.600
Rs.75,000 to Rs. 99,999 Rs.750
Rs.1,00,000 to Rs. 1,24,999 Rs.1000
Rs.1,25,000 onwards Rs.1250
Maharashtra Up to Rs. 7,500 Nil (for male)
Up to Rs. 10,000 Nil (for female)
From Rs. 7,500 to Rs. 10,000 Rs. 175 (for male)
Rs. 10,000 onwards Rs. 200 for 11 months + Rs. 300 for 12th month
Telangana Up to Rs. 15,000 Nil
Rs.15,001 to Rs.20,000 Rs. 150
Rs.20,001 onwards Rs.200
Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.) Nil
Over 5 years (For professionals such as legal practitioners, CA, architects, etc.) Rs. 2,500 (per annum)
West Bengal Up to 10,000 Nil
10,001 to 15,000 Rs. 110
15,001 to 25,000 Rs. 130
25,001 to 40,000 Rs. 150
40,001 and above Rs. 200

Who is exempted from professional tax?

  • Parents/guardians of mentally or permanently disabled children

  • Members of forces mentioned in 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

Additional read: Tax savings tips for small business owners

What is the procedure to pay professional tax?

You can pay your professional tax online or offline. Depending on your state’s requirement, professional tax return also need to be filed at specified intervals.

How to calculate professional tax?

In order to calculate professional tax, you will need to first consider if professional tax is applicable in your state. You can then look at your state’s professional tax slab and determine your tax amount. This must be done keeping your salary amount in mind. Accordingly, you will be able to see how much professional tax is deductible per month or annually. You can also choose to use a professional tax calculator by clicking here.

Calculate your taxes and prepare in advance to avoid hasty mistakes or missing the due date. Remember that your calculation and payment will need to be certified by a registered chartered accountant.

Additional read:What every business owner needs to know about professional tax


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