Professional Tax – Interest on Non Payment on of Professional Tax, Article 276. Professional Tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection. In India, professional tax is imposed at the state level. However, not all states impose this tax. The states which impose professional tax are Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat,Assam, Chhattisgarh, Kerala, Meghalaya, Odisha, Tri pura, Madhya Pradesh, and Sikkim. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.

Find Complete Details related to Professional Tax like – What is Professional Tax?, Article 276 in Constitution of India 1949, Deduction U/s 16 of Income Tax Act, Professional tax Rates, Professional Tax Forms, Professional Tax In India And Professional Tax Slab Rate etc. We also try to provide Professional Tax Slab Rates for AY 2016-17 for All States. Now you can scroll down below and check everything you want to know about Professional Tax.

What is Professional Tax?

  • Professional tax is levied by state government on the income earned by the way of profession, trade, calling or employment
  • The power to levy professional tax has been given to the states by way of clause (2) of Article 276 of the constitution of India.

Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer’s salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment

Professional Tax Brief Telangana & Andhra Pradesh

Professional Tax Brief Telangana & Andhra Pradesh

Professional Tax Due Dates All States

S NoStatePeriodicityProfessional Tax Payment Due Date
1Andhra PradeshMonthly10th Of Every Month
2AssamMonthly28th Of Every Month
3BiharYearly30th November In Every year
4GujarathMonthly15th Of Every Month
5JharkhandYearly31st October In Every Year
6KarnatakaMonthly20th Of Every Month
7KeralaHalf Yearly31st August & 28th February
8Madhya PradeshMonthly10th Of Every Month
9MaharashtraMonthlyLast Date Of Every Month
10ManipurYearly30th March
11MeghalayaMonthly28th Of Every Month
12OdishaMonthlyLast Date Of Every Month
13MizoramYearly30th June
14PuducherryHalf Yearly30th June & 31st December
15SikkimQuarterly31st Jul, 31st Oct, 31st Jan, 30th Apr
16Tamil NaduHalf Yearly30th September & 31st March
17TelanganaMonthly10th Of Every Month
18West BengalMonthly21st of Every Month

Applicability of Professional Tax

Applicability of Professional Tax as per the Constitution of India:  Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act. Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time.

Article 276 in Constitution of India,1949

  • Notwithstanding anything in Article 246, no law of the Legislature of a State relating to taxes for the benefit of the State or of a municipality, district board, local board or other local authority therein in respect of professions, trades, callings or employments shall be invalid on the ground that it relates to a tax on income
  • The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State byway of taxes on professions, trades, callings and employments shall not exceed two hundred and fifty rupees per annum: Provided that if in the financial year immediately preceding the commencement of this Constitution there was in force in the case of any State or any such municipality, board or authority a tax on professions, trades, callings or employments the rate, or the maximum rate, of which exceed two hundred and fifty rupees per annum, such tax may continue to be levied until provisions to the contrary is made by Parliament by law, and any law so made by Parliament may be made either generally or in relation to any specified States, municipalities, boards or authorities
  • The power of the Legislature of a State to make laws as aforesaid with respect to taxes on professions, trades, callings and employments shall not be construed as limiting in any way the power of Parliament to make laws with respect to taxes on income accruing from or arising out of professions, trades, callings and employments

Deduction U/s 16 of Income Tax Act

  • Any amount paid to state government as professional tax is allowed as deduction under section 16(iii) of Income tax Act.
  • Section 16(iii):-
    • Deduction is available only in the year in which professional tax is paid.
    • If professional tax is paid by employer on behalf of employee, then first it is included in the salary of the employee as a “Perquisite” and then the same is allowed as deduction on account of “Professional Tax” from gross salary.
    • There is no monetary ceiling under Income tax Act(under the Article 276, State government cannot impose more than Rs 2500 Per annum as professional tax).Whatever professional tax is paid during the year is deductible.

Deducted and Paid By?

  • In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government.
  • In case of other class of individuals, this tax is liable to be paid by the employee himself.

Professional tax Rates

  • If you are salaried employee earning above Rs.12000 per month then you are liable to pay Rs.200 per month. The Annual Professional Tax is Max Rs.2500.
  • Please Note these Professional Tax Rates is Only as per Gujarat State (We Provide Professional Tax Slab Rates for All States in Next Article)
Monthly salary (in Rs.)Tax (in Rs. Per month)
Up to 7,500 for menNil
Up to 10,000 for womenNil
7,500 to 10,000175
Exceeds Rs 10,000/-2,500 per annum to be paid in following manner

(a) rupees two hundred per month except for the month of February

(b) rupees  three hundred for the month of February


Must Read – Updated Professional-Tax Rates in Maharashtra

Professional Tax in Karnataka:

Monthly salary (in Rs.)Tax (in Rs. Per month)
Up to 15,000Nil
More than 15,000200

Professional Tax in West Bengal:

Monthly salary (in Rs.)Tax (in Rs. Per month)
Up to 8,500Nil
8,501 to 10,00090
10,001 to 15,000110
15,001 to 25,000130
25,001 to 40,000150
More than 40,000200

Professional Tax in Madhya Pradesh:

Annual salary (in Rs.)Tax (in Rs. Per month)
Up to 1.5 lakhsNil
1.5 lakhs to 1.8 lakhs125
1.8 lakhs and above212

Professional Tax in Tamil Nadu:

Half yearly salary (in Rs.)Tax (in Rs. Per 6 month)
Up to 21,000Nil
21,001 to 30,000100
30,001 to 45,000235
40,001 to 60,000510
60,001 to 75,000760
75,001 and above1095

Professional Tax in Andhra Pradesh:

Monthly salary (in Rs.)Tax (in Rs. Per month)
Up to 15,000Nil
15,001 to 20,000150
Above 20,000200

Professional Tax in Gujarat:

Monthly salary (in Rs.)Tax (in Rs. Per month)
Up to 5,999Nil
6,000 to 8,99980
9,000 to 11,999150
12,000 and above200

Professional Tax in Odisha:

Monthly salary (in Rs.)Tax (in Rs. Per month)
Up to 5,000Nil
5,001 to 6,00030
6,001 to 8,00050
8,001 to 10,00075
10,001 to 15,000100
15,001 to 20,000150
Above 20,000200

Registration of Professional Tax

  • The Employer has to get registered even if he is responsible to deduct tax from the salary of one employee.
  • Form No 1 is the Application form for Registration.
  • The time limit for registration is 60 days from the date of accruing liability under the Act.
  • The Employer has to get separate registration for each of his Branch

Deposit of Amount Deducted

  • Employers covered under the jurisdiction of “State Government” as Designated authority shall pay in the treasury by Challan through the bank. Other employers shall pay at the place of payment declared by the Designated Authorities concerned.
  • If an employer has employed more than 20 employees, he is required to make payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly(i.e. by the 15th of next month from the end of the quarter).

Interest Provisions

  • Fails to get Registration – He will be liable to a penalty of Rs.20/- per day under Section 5(5) for the period during which he remains unregistered.
  • Interest on Late Payment of Professional Tax – He is liable to pay interest at the rate of 18 %  per annum for such delayed  period along with penalties prescribed
  • Non Deposition of Amount. – The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover they can attach his bank account also. In serious cases, prosecution case (police case) also can be filed.

Due Date for Payment of Professional Tax

Must Read – Professional Tax Due Dates in Maharashtra

If less than 20 or less 20 Employees , than Due date for payment of Professional Tax is 15th day from the end of quarter

Due Date For Payment Of Professional Tax
April-June15th of July
July – Sep15th of October
Oct-Dec15th of January
Jan-March15th of March

If More than 20 Employees , than Due date for payment of Professional Tax is 15th day from the end of Month

MonthDue Date For Payment of Professional Tax
April15th of May
May15th of June
June15th of July
July15th of August
August15th of September
September15th of Oactober
October15th of November
November15th of December
December15th of January
January15th of February
February15th of March
March15th of April

Return Filing

As Per Gujarat State

  • A monthly return in Form No.5 is to be filed by 15th of next month, if the number of employees is more than twenty. Where number of employee is less than 20, only an annual return in Form No.5AA is required to be filed.
  • If Any Registration holder wants to file Annual return then he can file if he has obtain special permission from the authority by applying in the FORM 5B for this purpose.

Gujarat Professional Tax Schedule

Professional Tax due dates

Professional Tax Forms (Gujarat Commercial Tax)

Form nameDescription
 Form 1 Employer’s Registration Form
 Form 3 Application For a Certificate Of Enrolment / Revision Of Certificate Of Enrolment
 Form 4-A Declaration To Be Furnished By An Employee To His Employer or Employers
 Form 5 Return Of Tax Payable By Employer
 Form 5-A Return Of Tax Payable By An Employer
 Form 5-AA Return Of Tax Payable By An Employer
 Form 5-B Application For Permission To Furnish Annual Return
 Form 5-C Application For Grant Permission To File Consolidated Return
 Form 5-CC Application For Grant Permission To File Consolidated Return

Latest Comments

  1. We are started new trading company ,if PT registration is compulsory ? and no.of employees working in our office are around 8 members ,is this any limit for registration in number of employee during the year?

  2. Sir,
    i am sixty three years old and i am doing the job in private finance company. i am staying in gujarat (vadodara) any relaxation for above 60 years working employee in payment of advise

  3. Hello,
    I am getting Post Doctoral Fellowship from Science and Eng. Research Board (SERB) under National Post Doctoral fellowship Rs. 55,000/- PM and I am working in Nagpur Maharastra in autonomous institute govern by central government. This fellowship is taxable according to rule of SERB.

    Is my fellowship is comes under professional tax or not ??

    Please give me a suggestion. And please provide me a reference if it not comes under the professional tax.

  4. Hloo professionals, I have a business of petrol pump, I haven’t paid professional tax for the period 2012-13, 2013-14,2014-15, so my question is whether I need to pay any penalty or I can pay with interest only ?
    Kindly reply to my query , it’s urgent .
    Thanking you
    Yuvaraj Ippili

  5. my company less than 20 employees in Gujarat and deposit the P.T. Qtrly. but we have not deposit in timely.

    i have to know what can be charge/rate of Interest and penalty on late deposited amount of P.T.

    Qtr Due Date Deposited DAte

    1 15.07.2016 20.07.16

    2 15.10.2016 29.10.16

    3 15.01.2017 15.02.17

    Interest can charged on total month or daywise?

  6. I have salary more than 25000 from 01/07/2016 how much i have to pay as pt in september 2015. Before 01/07/2016 my salary is less than 20000

  7. i want to register a firm in PTax but a place where office is situated on rent place owner not paid property tax then how can i get registered under prof. tax???

  8. Can employee be charged 2 times in the same month to pay PT?

    I was in a job for company A till 21.09.2015 and they have deducted Rs.200/- as PT from the salary for the period from 01.9.2015 to 21.09.2015 and is reflected in the F &F. I joined Adani Gp on 22.09.2015, they are also insisting to deduct Rs.150/- from the salary for the period from 22.09.2015 to 30.09.2015.

    Is this deduction legal and valid? I feel that the employee can not be charged TWICE FOR PT IN THE SAME MONTH. Please advise.

  9. is it mandatory to have a office in the state for deduction of professional tax. we have employee posted at chennai, but we don’t have office there, so than in that case will I eligible to deposit professional tax or not.


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