HR Glossary

PT (Professional Tax)

Professional Tax is levied by the state government on the individuals who earn a living through any means. However, this cannot be confused with professionals like lawyers, doctors etc. This tax must be paid by each and every person who is earning income.
The tax can be calculated as per the predetermined slabs and monthly salary. Basically, it is around Rs. 200/ month and Rs. 300 in February and the maximum can go to and the maximum in a year can go upto Rs. 2,500. The tax is paid and deducted by the employer.

The states that do not impose PT in India are Andhra Pradesh, Assam, Bihar, Gujarat, Karnataka, Kerala, Meghalaya, Orissa, Sikkim, Telangana, Tamil Nadu, Tripura, West Bengal, Madhya Pradesh.