Quick answer: Professional tax in Gujarat has a single slab since 1 April 2022: nil up to ₹12,000 a month and ₹200 a month above ₹12,000, so ₹2,400 a year. Employers pay it to the local collecting authority (in cities, the municipal corporation), usually by the 15th of the next month; small employers on annual returns pay quarterly. Interest on late payment is up to 1.5% a month.
Gujarat levies professional tax under the Gujarat Panchayats, Municipalities, Municipal Corporations and State Tax on Professions, Trades, Callings and Employments Act, 1976. As the long name suggests, collection is local: municipal corporations, municipalities and panchayats are the designated authorities in their areas, with the State Commercial Tax Department covering the rest. This guide covers the current slab, who collects, the due dates (which depend on the size of the employer), how to pay online and the penalties. For how professional tax works in other States, see our professional tax guide.
Professional tax slab in Gujarat
| Monthly salary or wages | PT a month | PT a year |
|---|---|---|
| Up to ₹12,000 | Nil | Nil |
| More than ₹12,000 | ₹200 | ₹2,400 |
The Finance Department notified this single slab on 8 April 2022 with effect from 1 April 2022, replacing the earlier graded rates (₹80 for ₹6,000–₹8,999 and ₹150 for ₹9,000–₹11,999) (text of the 8 April 2022 notification). Many older guides and payroll set-ups still show the graded slab, so check yours. There is no February top-up, so the yearly amount is ₹2,400, not ₹2,500. Where salary is paid for a period other than a month, it is converted to a monthly figure to find the slab. Check any salary with our professional tax calculator.
Example
An Ahmedabad company has 30 employees: 26 earn more than ₹12,000 a month and 4 trainees earn ₹11,500. Monthly PT is 26 × ₹200 = ₹5,200, paid to the Ahmedabad Municipal Corporation by the 15th of the next month, or ₹62,400 for the year. If a trainee's pay rises to ₹12,500, ₹200 is deducted from that month.
Who collects professional tax in Gujarat
Under the Act, the "designated authority" collects the tax in its area:
- Municipal corporations in their cities, such as Ahmedabad, Surat, Vadodara, Rajkot, Bhavnagar, Jamnagar, Junagadh and Gandhinagar (Gujarat has 17 municipal corporations since January 2025);
- municipalities and panchayats in their areas;
- the State Tax (formerly Commercial Tax) Department where the State Government is the designated authority.
So an employer registers with, and pays to, the authority for each place where it has employees. A company with offices in Ahmedabad and Surat deals with both corporations separately.
Registration and who pays
- Employers: obtain a certificate of registration within 60 days of becoming liable (usually when the first employee earns more than ₹12,000), deduct ₹200 a month and deposit it.
- Enrolled persons: companies, firms, professionals, traders and others in the Schedule obtain a certificate of enrolment and pay a fixed annual amount, up to ₹2,500.
- Place of work: employees working in Gujarat are covered by the Gujarat Act even if payroll is processed elsewhere.
PT due dates in Gujarat
| Who | Return | Payment due |
|---|---|---|
| Employers filing monthly returns | Form 5 (monthly) | Within 15 days after the month, i.e. by the 15th of the next month |
| Employers with 20 or fewer employees (preceding year) | Form 5-AA (annual) | Quarterly: 15 July, 15 October, 15 January, 15 April |
| Enrolled persons enrolled before 31 August | None | 30 September |
| Enrolled later in the year | None | Within one month of enrolment |
Rule 11 of the Gujarat Rules sets the monthly return. Under rule 11A, an employer with 20 or fewer employees in the preceding year files one annual return (Form 5-AA) by 15 April but pays tax quarterly, within 15 days after each quarter. Once headcount exceeds 20, monthly returns apply from the next year. Add your dates to the payroll compliance calendar.
How to pay professional tax online in Gujarat
- Identify the authority: the municipal corporation, municipality or panchayat where your employees work, or the Commercial Tax Department.
- Open its PT payment page: for example, the "pay professional tax" option in the Ahmedabad Municipal Corporation's quick-pay links, or the Surat and Vadodara corporations' professional tax pages.
- Enter details: the registration or enrolment number and the period (month, quarter or year).
- Pay and file: pay online through the payment gateway and file the return for the period.
- Keep records: save the challan and return with the payroll; employers must keep a register of salary paid and tax deducted for each employee.
Interest and penalty
- Interest (section 9): an employer who fails to deduct PT, or deducts it and fails to pay, is liable to simple interest of up to 1.5% of the tax for each month or part of a month; the same applies to enrolled persons. The rate was reduced from 2% in 2006; 1.5% is the maximum rate under section 9 as amended in 2023, so check the rate currently notified.
- Penalty (section 10): if tax is still unpaid after the time allowed in a demand notice, without reasonable cause, the authority may impose a penalty of up to 50% of the tax due, after giving an opportunity to be heard (text of the Gujarat Act).
- Late registration: delays in obtaining registration or enrolment can attract a daily penalty of up to ₹20 a day for employers and ₹10 a day for others (section 5).
How these compare with PF, ESI and TDS penalties is covered in our payroll penalties guide.
Gujarat vs other States
Gujarat's ₹12,000 exemption limit is lower than Karnataka (₹25,000) or Telangana (₹15,000), so almost every full-time employee pays. Like Tamil Nadu, collection is local rather than through one State portal, but unlike Tamil Nadu the deduction is monthly. Under the old income-tax regime PT paid is deductible from salary; the new regime, the default under the Income-tax Act, 2025, does not allow it.
Get PT, PF, ESI and TDS right every month. The Indian Salary & Payroll Management e-Book explains every statutory deduction with worked examples, due dates and checklists.
Frequently asked questions
What is the professional tax slab in Gujarat?
Since 1 April 2022, salaried employees in Gujarat whose monthly salary or wages are up to 12,000 rupees pay no professional tax, and those earning more than 12,000 rupees pay 200 rupees a month, which is 2,400 rupees a year. The older graded rates of 80 and 150 rupees no longer apply.
What is the PT due date in Gujarat?
Employers that file monthly returns pay the tax deducted and file Form 5 within 15 days after the end of the month, that is, by the 15th of the next month. Employers with 20 or fewer employees, who file an annual return, still pay quarterly, by 15 July, 15 October, 15 January and 15 April. Enrolled persons pay by 30 September each year.
Who collects professional tax in Gujarat?
Gujarat's law makes municipal corporations, municipalities and panchayats the collecting authorities in their areas, and the State Commercial Tax Department in other cases. Employers in Ahmedabad, Surat or Vadodara, for example, register with and pay their municipal corporation.
How do I pay professional tax online in Gujarat?
Pay on the website of the authority you are registered with: the municipal corporation's portal (for example the Ahmedabad, Surat or Vadodara corporation's professional tax payment page) or the Gujarat Commercial Tax portal where the State is the authority. Enter the registration number, select the period and pay online.
What is the penalty for late payment of professional tax in Gujarat?
Late payment attracts simple interest of up to 1.5% a month or part of a month under section 9 of the Act, at the rate currently notified. If tax remains unpaid after the time allowed in a demand notice, without reasonable cause, the authority may impose a penalty of up to 50% of the tax due after giving an opportunity to be heard.
Position as of 15 November 2026. Based on the Gujarat Panchayats, Municipalities, Municipal Corporations and State Tax on Professions, Trades, Callings and Employments Act, 1976, the Rules, 1976, and the Finance Department notification of 8 April 2022. General information, not legal or tax advice.