How to Calculate Professional Tax on Salary in India

Professional tax is the tax that will be levied on salaried employees and other professionals like chartered accountants. lawyers, doctors, and other professions. If you want to know how to calculate professional tax on salary in India then you must know some important points about professional tax slab in India. PT is not applicable in entire India, it is applicable to only certain states in India. There is no formula to calculate the professional tax. Professional tax is based on monthly salaries of individuals.

How to Calculate Professional Tax on Salary in India

As I said earlier there is no formula to calculate professional tax in India, it has to be paid according to the fixed professional tax slab rates in the states of India. Here you can find a list of professional tax slab rates in various states of India and also find professional tax due dates in various states of India.

Professional Tax Applicable States in India

Professional tax in India is applicable to states like Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Pondicherry, Sikkim, Tamilnadu, Telangana, Tripura, West Bengal.

Professional Tax is Not Applicable States in India

Andaman & Nicobar Islands, Arunachal Pradesh, Chandigarh, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Delhi, Goa, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh & Uttarakhand.

Why Salaried Employees Should Pay Professional Tax

Every salaried employee in India has a responsibility to become a part of the development of the nation, for that they have to pay a part of their income towards professional tax. The professional tax will be fixed by the state governments. Not only salaried employees even self-employed professionals also need to pay professional tax. The collected professional tax will be utilized for the development activities of the states.

What is the Difference Between Professional Tax & Income Tax

There are a fixed income tax slab rates in India based on the annual income of individuals of India, in India up to 250000 Rs annual income there is no need to pay income tax. But in case of professional tax every salaried individual who are getting salaries under prescribed professional tax slab should need to pay the professional tax. Even employees paying income tax still they have to pay the professional tax.

Still, if you have any doubts on how to calculate professional tax in India then ask those queries in below comments section.

6 thoughts on “How to Calculate Professional Tax on Salary in India”

  1. Hi,
    I want to know if decided to pay salary of April to October month in November month, shall I have to deduct profession tax from April or of November only?
    Please guide.


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