Professional Tax (PT) Rate Schedule (Effective from April 1, 2023)

What is Professional Tax?

• It is a small tax charged by the state government on people earning through jobs, businesses, or self-employment.

• It is deducted from salaries for employees or paid directly by business owners and professionals.

What is Salary?

• Salary means the monthly payment a person gets from their employer for their work.

• It includes basic salary, allowances, and bonuses but not things like travel reimbursements or medical expenses.

Who Needs to Pay Professional Tax?

1. Salaried Employees & Wage Earners

👉 (People who receive a salary from an employer)

✅ Example: If your monthly salary is ₹12,000, you will pay ₹200 per month, except in February, when you pay ₹300.

2. Self-Employed Professionals & Business Owners

👉 (People who work for themselves, like doctors, shop owners, contractors, etc.)

• ₹2,500 per year

3. Business Entities (Companies, Firms, etc.)

👉 (Private Limited Companies, LLPs, Co-operative Societies, etc.)

• ₹2,500 per year

When to Pay Professional Tax?

• Salaried Employees → Employer deducts it monthly and pays it to the government.

• Self-Employed & Businesses → Must pay once a year before 31st March.

Who is Exempted from Paying PT?

• Senior citizens (above 65 years)

• Handicapped individuals (40% disability or more)

• Parents of children with mental disabilities

• Members of the armed forces