What is Professional Tax?

Professional tax can be defined as a tax that is levied by a state government on all individuals who earn a living through any medium. This must not be confused with the definition of other professionals such as doctors or lawyers. This is a type of tax that needs to be paid by each and every individual earning income. The calculation of this tax and the amount collected differs from one state to another. However, the limit has been set to Rs. 2500 per year.

Types of Professional Tax

There Are Two Types Professional Tax Certificates:-

PTEC (Professional Tax Enrollment Certificate):

This is paid by the business entity, owner or a professional i.e. Private/ Public Limited Company, Sole Proprietor, Director Etc.

PTRC: (Professional Tax Registration Certificate):

Government or Non- Government employer deducts the tax from the employee’s wages and deposit the same to the government.

Professional Tax slabs in different states

Each state tends to have its own slab for professional taxes. Here is a list of the slabs for various states and union territories in India.

Monthly Salary (Rs)	Odisha	Gujarat	Maharashtra	West Bengal	Karnataka	Andhra Pradesh	Tamil Nadu
Up to 5,000	Nil	Nil	Nil	Nil	Nil	Nil	Nil
5,001 to 6,000	30	Nil	Nil	Nil	Nil	Nil	Nil
6,001 to 7,000	50	80	Nil	Nil	Nil	Nil	Nil
7,001 to 7,500	50	80	Nil	Nil	Nil	Nil	Nil
7,501 to 8000	50	80	175	Nil	Nil	Nil	Nil
8,001 to 8,500	75	80	175	Nil	Nil	Nil	Nil
8,501 to 9,000	75	80	175	90	Nil	Nil	Nil
9,001 to 10,000	75	150	175	90	Nil	Nil	Nil
10,001 to 12,000	100	150	200	110	Nil	Nil	Nil
12,001 to 15000	100	200	200	110	Nil	Nil	Nil
15,001 to 20,000	150	200	200	130	200	150	Nil
20,001 to 21,000	200	200	200	130	200	200	Nil
21,001 to 25,000	200	200	200	130	200	200	100
25,001 to 30,000	200	200	200	150	200	200	100
30,001 to 40,000	200	200	200	150	200	200	235
40,001 to 45,000	200	200	200	200	200	200	235
45,001 to 60,000	200	200	200	200	200	200	510
60,001 to 75,000	200	200	200	200	200	200	760
75,001 and above	200	200	200	200	200	200	1095