What is PT or Professional Tax?

Created by Product Content Team, Modified on Thu, 14 Mar at 3:24 PM by Product Content Team


Professional tax is a tax imposed by state governments in India on individuals who earn a salary or income through a profession, trade, calling, or employment. It is governed by the respective state's 


Professional Tax Act or Rules.

It is deducted at the source by the employer. It is a nominal tax and never exceeds a few hundred rupees a month. The maximum amount of Professional Tax that any state can impose in India is ₹2500. 


Further, the total amount of Professional Tax paid during the year is allowed as a deduction under the Income Tax Act.


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Related Links:

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FAQs - To read more FAQs about Professional Tax, click here.

Documentation:

  •  To read more about the Professional Tax Location page, click here.
  • To read more about the View/Update professional tax slabs page, click here.

Product Update - To read about the product update, click here.


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