Professional Tax

Professional tax is a tax levied by the commercial tax department of each state on all individuals who earn a wage/Salary in any capacity. Employers are required to deduct the tax before processing their employees’ salaries.

Since this is a state-specific statutory, each state has its own regulations, slab rates, and deadlines. Employees in different salary brackets will have to pay different amounts for professional tax.

APPLICABILITY PROFESSIONAL TAX

In India Out of the 28 states and 9 union territories in India, professional tax is applicable in 21 states and 1 union territory.

The states and union territories in which professional tax is applicable are listed below: (Click on the state name for more details)

Applicable States

Professional tax: state-wise slab and due dates

Not Applicable States

WHO IS RESPONSIBLE FOR DEDUCTING & SUBMITTING OF PROFESSIONAL TAX?

The employer is responsible for deducting professional tax from the salaries of his employees and paying the amount so collected to the appropriate state government. An employer has to furnish a return to the tax department in the prescribed form within the specified time along with proof of tax payment.

CONSEQUENCES

Fails to Get Professional Tax Registration
He/Employer will be liable to a penalty for the period during which he remains unregistered.

Fails to Deposit to the Government and Late Deposition
He/Employer will be liable to a penalty for the period during which he remains unregistered.

Non-Deposition of Amount.
The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter.

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