C. Deduction Components | 3. Professional Tax
Professional Tax (PT) is a state-level tax levied on income earned by salaried individuals, professionals, and traders. It is administered and collected by the respective State Governments.
🏛️ Key Features:
- Not applicable in all states – only in those that have enacted PT laws (e.g., Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, etc.)
- Mandatory where applicable
- Employers are responsible for monthly deduction and remittance
📊 Calculation Basis:
- Professional Tax is slab-based – deduction depends on gross monthly salary
- Each state defines its own salary slabs and deduction rates
- Maximum annual PT: ₹2,500 (as per Article 276 of the Constitution)
📌 Example: Maharashtra PT Slab
| Monthly Gross Salary | PT Deduction |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 – ₹10,000 | ₹175 per month |
| Above ₹10,000 | ₹200 per month (₹300 in February) |
Note: Slabs vary across states. Always refer to the respective State Government's notification.
✅ Summary:
- Levied by State Governments
- Applicable only in select states
- Slab-based, fixed deduction depending on gross salary
- Mandatory wherever applicable
- Employer must deduct & deposit PT monthly
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