{"id":3123,"date":"2021-09-13T12:20:42","date_gmt":"2021-09-13T06:50:42","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3123"},"modified":"2022-08-16T00:14:53","modified_gmt":"2022-08-15T18:44:53","slug":"learn-professional-tax","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/","title":{"rendered":"What is Professional Tax? Meaning, Rates, and Applicability"},"content":{"rendered":"<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Professional Tax (PT) is one of the statutory compliance requirements for businesses. Unlike <a href=\"https:\/\/razorpay.com\/blog\/payroll-compliance-pf-esi-pt-tds-opfin\/\">TDS, EPF and ESI, PT<\/a> is levied by the respective state governments.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">But there\u2019s a catch!\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Not all Indian states impose a professional tax. Also, the tax applicable to different income slabs may vary from one state to another, but it has a maximum limit of Rs 2,500 per year.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Let\u2019s dig further to know the applicability of professional tax, the states where such tax is applicable, and how <strong>RazorpayX Payroll<\/strong><\/span><span style=\"font-weight: 400;\">\u00a0simplifies it for businesses.\u00a0\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d6b0f27510c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d6b0f27510c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#What-is-Professional-Tax\" >What is Professional Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#Who-is-responsible-to-collect-and-pay-professional-tax\" >Who is responsible to collect and pay professional tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#Professional-tax-registration-and-process\" >Professional tax registration and process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#Professional-Tax-slabs-in-various-states\" >Professional Tax slabs in various states<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#What-is-the-procedure-to-pay-professional-tax-Is-any-return-to-be-filed\" >What is the procedure to pay professional tax? Is any return to be filed?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#Consequences-of-violation-of-professional-tax-regulation\" >Consequences of violation of professional tax regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#Exemptions-in-Professional-Tax\" >Exemptions in Professional Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/learn-professional-tax\/#The-bottom-line\" >The bottom line\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"What-is-Professional-Tax\"><\/span><span style=\"font-weight: 400;\">What is Professional Tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Professional tax is a direct tax that applies to individuals earning an income by way of employment, practising their profession, or trading. A practicing professional includes a lawyer, teacher, doctor, chartered accountant, etc.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tax is deducted from the individual\u2019s monthly salary by their employer and is deposited to the state governments. Professionals apart from salaried employees pay it directly to the government.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Such professionals can claim a tax deduction for the professional tax paid during the financial year as per the Income Tax Act 1961.\u00a0\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who-is-responsible-to-collect-and-pay-professional-tax\"><\/span><span style=\"font-weight: 400;\">Who is responsible to collect and pay professional tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the case of a salaried employee, the employer must deduct professional tax from their salary every month and deposit it to the government. The employer needs to get a Registration Certificate from the concerned authorities to deposit the deducted tax.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whereas, the self-employed individuals who carry out their profession or trade and fall into eligibility criteria are required to pay the professional tax themselves to the state government. They need to obtain a Certificate of Enrolment from the concerned state\u2019s prescribed authority.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every state\/UT has a commercial tax department that collects professional tax based on predetermined income slabs.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\" data-speechify-sentence=\"\"><strong>[Also Read:<\/strong> <em><a href=\"https:\/\/razorpay.com\/blog\/e-book-the-complete-guide-to-closing-the-financial-year-for-startups\/\" target=\"_blank\" rel=\"noopener noreferrer\">A 7-step checklist to help you wrap up Financial year]<\/a><\/em><\/p>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Professional-tax-registration-and-process\"><\/span><span style=\"font-weight: 400;\">Professional tax registration and process<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">All employers must obtain professional tax registration within 30 days of employing individuals. In the case of other professionals, the registration must be obtained within 30 days from the start of their practice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the employer has more than one office, then the registration must be obtained for each office depending on the respective state rules.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It might be challenging for employers to catch hold of the registration process of all the states wherever professional tax is applicable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To ease the complexities of registration processes across states, we built <\/span><b>RazorpayX Payroll<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">RazorpayX Payroll is an automated payroll software that takes care of everything payroll related right from salary disbursement to getting statutory compliance requirements right. The product also handles professional tax state-wise registrations for employers and saves a lot of valuable time.\u00a0\u00a0<\/span><\/p>\n<div style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup\" target=\"_blank\" rel=\"noopener noreferrer\">Try RazorpayX Payroll Now<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Professional-Tax-slabs-in-various-states\"><\/span><span style=\"font-weight: 400;\">Professional Tax slabs in various states<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Here\u2019s the list of states where PT is applicable along with the tax amount:\u00a0<\/span><\/p>\n<table data-speechify-sentence=\"\">\n<tbody>\n<tr>\n<td><b>State<\/b><\/td>\n<td><b>Period of deduction<\/b><\/td>\n<td><b>Income slabs<\/b><\/td>\n<td><b>Tax amount<\/b><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Andhra Pradesh<\/span><\/td>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 15,001 to INR 20,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">More than INR 20,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Assam<\/span><\/td>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 10,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 10,001 to INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 15,001 to INR 25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 180<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">More than INR 25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 208<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Bihar<\/span><\/td>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 3 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 3 lakh to INR 5 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 5 lakh to INR 10 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 10 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,500<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"5\"><span style=\"font-weight: 400;\">Jharkhand<\/span><\/td>\n<td rowspan=\"5\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 3 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 3 lakh to INR 5 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,200<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 5 lakh to INR 8 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 8 lakh to INR 10 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,100<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 10 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,500<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Gujarat<\/span><\/td>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 5999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 6000 to INR 8999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 80<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 9000 to INR 11999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">More than INR 12000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\"><span style=\"font-weight: 400;\">Karnataka<\/span><\/td>\n<td rowspan=\"2\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"9\"><span style=\"font-weight: 400;\">Kerala<\/span><\/td>\n<td rowspan=\"9\"><span style=\"font-weight: 400;\">Half-yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 11,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 12,000 to INR 17,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 120<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 18,000 to INR 29,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 180<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 30,000 to INR 44,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 300<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 45,000 to INR 59,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 450<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 60,000 to INR 74,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 600<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 75,000 to INR 99,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 750<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 1,00,000 to INR 1,24,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 1,25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,250<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Madhya Pradesh<\/span><\/td>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 2,25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 2,25,001 to INR 3,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,500 (INR 125 Per Month)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 3,00,000 to INR 4,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,000 (INR 166 Per Month For 11 Months And INR 174 For 12th Month)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 4,00,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,500 (INR 208 Per Month For 11 Months And INR 212 For 12th Month)<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Maharashtra<\/span><\/td>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 7,500<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between Rs 7,501 to Rs 10,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 175 (Nil for women)<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\"><span style=\"font-weight: 400;\">Above INR 10,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 300 (Employer has to deduct in the February month only)<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"5\"><span style=\"font-weight: 400;\">Manipur<\/span><\/td>\n<td rowspan=\"5\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 50,000 onwards to Rs 75,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,200<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 75,000 onwards to INR 1,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">INR 1,00,000 onwards to INR 1,25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,400<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 1,25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,500<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"12\"><span style=\"font-weight: 400;\">Meghalaya<\/span><\/td>\n<td rowspan=\"12\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 50,001 to INR 75,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 75,001 to INR 1,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 300<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 1,00,001 to INR 1,50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 500<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 1,50,001 to INR 2,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 750<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 2,00,001 to INR 2,50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 2,50,001 to INR 3,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,250<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 3,00,001 to INR 3,50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,500<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 3,50,001 to INR 4,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 4,00,001 to INR 4,50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,100<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 4,50,001 to INR 5,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,400<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 5,00,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,500<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Mizoram<\/span><\/td>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 5,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 5,001 to INR 8,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 75 (Assessee may pay in lump sum INR 900 per annum)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 8,001 to INR 10,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 120 (Assessee may pay in lump sum INR 1440 per annum)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 10,001 to INR 12,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150 (Assessee may pay in lump sum INR 1800 per annum)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 12,001 to INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 180 (Assessee may pay in lump sum INR 2160 per annum)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 15,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 208 (Assessee may pay in lump sum Rs 2500 per annum)<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Nagaland<\/span><\/td>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 4,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 4,001 to INR 5,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 35<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 5,001 to INR 7,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 75<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 7,001 to INR 9,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 110<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 9,001 to INR 12,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 180<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 12,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 208<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Odisha<\/span><\/td>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 1,60,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 1,60,001 to INR 3,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,500<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 3,00,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,500<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Puducherry<\/span><\/td>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 99,999<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 1,00,000 to INR 2,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 250<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 2,00,001 to INR 3,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 500<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 3,00,001 to INR 4,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 750<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 4,00,001 to INR 5,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,000<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 5,00,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,250<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Punjab<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Above INR 2,50,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Sikkim<\/span><\/td>\n<td rowspan=\"4\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 20,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 20,001 to INR 30,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 125<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 30,001 to INR 40,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 40,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Tamil Nadu<\/span><\/td>\n<td rowspan=\"6\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 21,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 21,001 to INR 30,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 135<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 30,000 to INR 45,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 315<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 45,001 to INR 60,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 690<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 60,001 to INR 75,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 75,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,250<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Telangana<\/span><\/td>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 15,001 to INR 20,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 20,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Tripura<\/span><\/td>\n<td rowspan=\"3\"><span style=\"font-weight: 400;\">Yearly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 7,500<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 7,501 to Rs 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 1,800<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 15,001<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 2,496<\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"5\"><span style=\"font-weight: 400;\">West Bengal<\/span><\/td>\n<td rowspan=\"5\"><span style=\"font-weight: 400;\">Monthly<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to INR 10,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Nil<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 10,001 to INR 15,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 110<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 15,001 to INR 25,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 130<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Between INR 25,001 to Rs 40,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 150<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Above INR 40,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">INR 200<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">With <\/span><strong>RazorpayX Payroll<\/strong><span style=\"font-weight: 400;\">, <a href=\"https:\/\/razorpay.com\/payroll\/payroll-compliance\/\">professional tax payments are also taken care of along with registrations<\/a>. The product uses a direct deposit model similar to any payment wallet where the user maintains a balance. The payroll expenses are automatically deducted from such balance as on the respective due dates.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">It takes care of all the statutory payments such as PF, ESI, PT, and TDS automatically and also their periodical returns.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\" data-speechify-sentence=\"\"><strong><span style=\"font-family: ff-more-web-pro, 'PT Serif', Georgia, serif; font-size: 19px;\">Suggested Read:\u00a0<\/span><a href=\"https:\/\/razorpay.com\/learn\/employee-state-insurance-esi\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-family: ff-more-web-pro, 'PT Serif', Georgia, serif; font-size: 19px;\">Why Your Employees Need ESI<\/span><\/a><\/strong><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">There is no need to spend time and manual efforts on maintaining employee records, their PT contribution, and payment to concerned authorities once a RazorpayX Payroll account has been set up.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup\" target=\"_blank\" rel=\"noopener noreferrer\"><b>Set your RazorpayX Payroll account now<\/b><\/a><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Here&#8217;s the list of states where professional tax is not applicable.\u00a0<\/span><\/p>\n<table data-speechify-sentence=\"\">\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Andaman and Nicobar Islands<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Himachal Pradesh<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Arunachal Pradesh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jammu and Kashmir<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Chandigarh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Ladakh<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Chhattisgarh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lakshadweep<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dadra and Nagar Haveli<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rajasthan<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Daman and Diu<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Uttar Pradesh<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Delhi<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Uttarakhand<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Goa<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Haryana<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"What-is-the-procedure-to-pay-professional-tax-Is-any-return-to-be-filed\"><\/span><span style=\"font-weight: 400;\">What is the procedure to pay professional tax? Is any return to be filed?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Professional tax is a state subject. There is no fixed procedure to pay professional tax. It can be paid either online or offline modes depending on the state from where the business is operating.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Also, the intervals and procedure for <strong>filing professional tax returns<\/strong> depend on the State.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consequences-of-violation-of-professional-tax-regulation\"><\/span><span style=\"font-weight: 400;\">Consequences of violation of professional tax regulation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The actual penalty depends on the respective State professional tax laws. Businesses might have to pay penalty, late fee or interest for non-registration, delay in tax payments and non-filing of returns within the specified due date.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">For instance, the Karnataka state government charges an interest of 1.25% per month for any late tax payments. Whereas, West Bengal charges 12% per annum.\u00a0<\/span><\/p>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Exemptions-in-Professional-Tax\"><\/span><span style=\"font-weight: 400;\">Exemptions in Professional Tax<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The following individuals are exempt from paying professional tax:\u00a0<\/span><\/p>\n<ol data-read-aloud-multi-block=\"true\">\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Parents or guardians of children with a mental disability or permanent disability<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">An individual suffering from a permanent physical disability including blindness<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Any individual of above 65 years<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Members of the forces as defined in the Air Force Act, 1950, the Army Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Temporary workers employed in the textile industry<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana<\/span><\/li>\n<\/ol>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"The-bottom-line\"><\/span><span style=\"font-weight: 400;\">The bottom line\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Any failure to obtain professional tax registration or depositing dues to the concerned authorities might land employers and professionals in trouble. Penalty\/late fee or interest rates on late registrations or late payments are different for each state.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">With RazorpayX Payroll, you, as an employer, can avoid all such consequences. The product will take care of all your professional tax dues payment and their return filing <\/span><b>on time<\/b><span style=\"font-weight: 400;\">; leaving no scope for <\/span><b>default <\/b><span style=\"font-weight: 400;\">with statutory compliance requirements.\u00a0<\/span><\/p>\n<div style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/?r=PT\" target=\"_blank\" rel=\"noopener noreferrer\">Automate PT payments now!<\/a><\/div>\n<div data-speechify-sentence=\"\"><\/div>\n<h3>Frequently Asked Questions<\/h3>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n<p data-speechify-sentence=\"\">\n","protected":false},"excerpt":{"rendered":"<p>Professional tax is a direct tax that applies to individuals earning by way of employment or practising their profession. Explore more through this article. <\/p>\n","protected":false},"author":151156469,"featured_media":6594,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3476,3404],"tags":[1948],"class_list":{"0":"post-3123","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll-glossary","8":"category-payroll","9":"tag-tax"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156469"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=3123"}],"version-history":[{"count":26,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3123\/revisions"}],"predecessor-version":[{"id":6595,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3123\/revisions\/6595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/6594"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=3123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=3123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=3123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}