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 state government. Omnivoo calculates PT, deducts it on your payslip, and files the required returns.
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
- State-specific: Not all states levy PT, and the slabs differ by state
Maharashtra PT Slabs
Omnivoo employees work remotely and are treated as Maharashtra-based for statutory purposes, so Maharashtra PT applies:
| Monthly Gross Salary | PT Per Month |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 - ₹10,000 | ₹175 |
| Above ₹10,000 | ₹200 (₹300 in February) |
The February figure is higher so the year totals the ₹2,500 cap: 11 months x ₹200 + ₹300 in February = ₹2,500. The February bump applies only to employees in the ₹200 slab.
How Omnivoo Handles PT
- Automatic calculation: Omnivoo applies the correct slab based on your monthly gross salary.
- Monthly deduction: PT is deducted from your gross salary each month and shown as a separate line on your payslip.
- February cap: Omnivoo applies the February adjustment automatically so your annual PT never exceeds ₹2,500.
- Filing and deposit: Omnivoo deposits PT with the state government and files the required returns. You do not need to do anything.
PT on Payslip
Professional Tax appears as a separate deduction line on your payslip:
- Monthly deduction: ₹175 or ₹200, depending on your gross salary (₹300 in February for the top slab)
- Annual total: Maximum ₹2,500
- Tax benefit: The amount is deductible from your taxable income
Related: Labour Welfare Fund
Maharashtra also levies a small Labour Welfare Fund (LWF) contribution, which is a separate deduction collected twice a year. See Labour Welfare Fund (LWF) for details.