Professional tax (PT) for employers
Professional tax (PT) for employers
Professional tax basics: which states levy it, the ₹2,500 yearly cap, employer registration and monthly deduction from salary.
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₹2,500Most a person can pay in a year
StateSlabs and due dates set by each state
MonthlyUsually deducted from salary
What it is
Professional tax is a state tax on employment. The Constitution caps it at ₹2,500 a person a year. Not every state levies it; Karnataka, Maharashtra, Tamil Nadu, West Bengal, Telangana and Gujarat are among the states that do.
What employers do
- Register in each state where you have employees, as the state requires.
- Deduct PT from salary using that state's slabs, which depend on monthly pay.
- Pay and file returns on the state's schedule, monthly or yearly.
- The company itself may also pay PT for its own registration in some states.
Tip
Slabs change from time to time. Check the current slab table on your state's commercial taxes or PT website before each financial year.
Free tools for this
Do it in USR One. USR HRMS runs leave and attendance, and USR Payroll (add-on, India, by invitation) handles PF, ESI, PT, LWF and TDS on salary on the same employee record. Payroll software · USR HRMS