Professional Tax (PT)
Professional Tax (PT) is a state-level direct tax levied on individuals who earn income from employment, trade, profession, or calling. It is deducted monthly by employers from gross salary and deposited with the respective State Commercial Tax Department.
Constitutional Ceiling
Under Article 276(2) of the Indian Constitution, the total amount payable in respect of any one person to the State or to any one local body shall not exceed ₹2,500 per annum.
State-Wise Slabs Overview (Key Economic Hubs)
| State | Monthly Salary Slab | Deduction Amount | Annual Cap |
|---|---|---|---|
| Maharashtra | > ₹10,000 (Men) / > ₹25,000 (Women) | ₹200/mo (₹300 in Feb) | ₹2,500 |
| Karnataka | ≥ ₹15,000 | ₹200/mo | ₹2,400 |
| Telangana | > ₹20,000 | ₹200/mo | ₹2,400 |
| Gujarat | > ₹12,000 | ₹200/mo | ₹2,400 |
| Delhi / Haryana | Any salary amount | ₹0 (No Tax) | ₹0 |
Income Tax Exemption for Professional Tax
Under Section 16(iii) of the Income Tax Act 1961, any Professional Tax paid by an employee is eligible for a 100% deduction from their Gross Salary before computing taxable income under the Old Tax Regime.
Calculate State Professional Tax
Use our free calculator to test rules for Maharashtra, Karnataka, Telangana, and Gujarat.