Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
A state-specific tax
Professional tax (PT) is levied by individual states on income from employment, profession or trade — so the rate, slabs and due dates differ by state, and some states (and Union Territories) don’t levy it at all. Where it applies, both employers (deducting from staff) and the self-employed must register and pay.
Monthly versus annual
For employers, PT deducted from salaries is usually paid monthly (by a state-specified date of the next month) with periodic returns. For self-employed professionals and businesses, it is often a lump-sum annual payment. Late payment attracts interest and penalty under the state Act. Confirm your state’s due dates and slabs.
A worked example
Example: a Maharashtra employer deducts PT (capped at ₹2,500 a year per employee) from salaries and deposits it monthly, while a Maharashtra-based consultant pays her own PT annually. A business in a non-PT state has nothing to do. Mapping PT to each state you employ in is part of payroll compliance. Our team can manage PT registration and payments.