Professional Tax
Professional Tax (PT) is a state-level tax on salaried individuals in India. It is deducted from your salary by the employer and deposited with the respective state government. Omnivoo handles PT calculation and filing based on your work location.
What Is Professional Tax?
Professional Tax is levied by state governments on individuals earning income from employment, profession, or trade. Despite its name, it applies to all salaried employees, not just professionals.
Key facts:
- Maximum annual limit: ₹2,500 (as per Article 276 of the Constitution of India)
- Deductible from income tax: PT paid is deductible under Section 16(iii) of the Income Tax Act 1961
- Not all states levy PT: Some states do not have Professional Tax
State-Wise PT Slabs
Professional Tax rates vary by state. Here are common slabs for the states where most employees are based:
Karnataka
| Monthly Gross Salary | PT Per Month |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 - ₹25,000 | ₹200 |
| Above ₹25,000 | ₹200 (₹300 in February) |
Annual total: ₹2,400 (₹200 x 11 months + ₹300 in February = ₹2,500)
Maharashtra
| Monthly Gross Salary | PT Per Month |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 - ₹10,000 | ₹175 |
| Above ₹10,000 | ₹200 (₹300 in February) |
Annual total: ₹2,500
Telangana
| Monthly Gross Salary | PT Per Month |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 - ₹20,000 | ₹150 |
| Above ₹20,000 | ₹200 |
Annual total: ₹2,400
Tamil Nadu
| Half-Yearly Gross Salary | PT Per Half-Year |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 - ₹30,000 | ₹135 |
| ₹30,001 - ₹45,000 | ₹315 |
| ₹45,001 - ₹60,000 | ₹690 |
| ₹60,001 - ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
Tamil Nadu calculates PT on a half-yearly basis rather than monthly. Omnivoo handles the conversion to monthly payroll deductions.
States With No Professional Tax
The following states and UTs do not levy Professional Tax: Delhi, Haryana, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Rajasthan (abolished), and several others.
If your work location is in one of these states, no PT is deducted from your salary.
How Omnivoo Handles PT
- Work location determination: PT is based on where the employee works, not where the company is registered.
- Automatic calculation: Omnivoo applies the correct state's PT slab based on your registered work location.
- Monthly deduction: PT is deducted from your gross salary each month (shown on your payslip).
- Filing and deposit: Omnivoo deposits PT with the state government and files the required returns.
Changing Work Location
If you relocate to a different state:
- Update your work location in your Omnivoo profile.
- Omnivoo recalculates PT based on the new state's slabs.
- The change takes effect from the next payroll cycle.
Always update your work location promptly when you move. Incorrect PT deductions can lead to compliance issues. If you are a remote worker, your PT is based on your registered work address.
PT on Payslip
Professional Tax appears as a separate deduction line on your payslip:
- Monthly deduction: Varies by state (typically ₹200/month)
- Annual total: Maximum ₹2,500
- Tax benefit: The amount is deductible from your taxable income
Labour Welfare Fund (LWF)
Some states also levy a Labour Welfare Fund contribution, which is a small additional deduction (typically ₹6-₹50 per half-year). Omnivoo includes LWF where applicable. It appears as a separate line item on your payslip.