Professional Tax (PT)
What is Professional Tax (PT)?
Professional Tax (PT) is a state-level tax levied on income earned by way of profession, trade, or employment. It is applicable to salaried employees, professionals, freelancers, and businesses, depending on the state laws.
Key Points:
✅ Levied by: State Governments
✅ Paid by: Employees (deducted by employer) and professionals
✅ Employer’s Role: Deduct PT from employees’ salary and deposit it to the state government
✅ Applicability: Varies by state (e.g., Maharashtra, Karnataka, West Bengal, Tamil Nadu, etc.)
✅ Monthly Deduction: Based on salary slabs defined by the respective state
✅ Maximum PT: Usually capped at ₹2,500 per annum