India Professional Tax Calculator 2023
Calculate State-wise Professional Tax (FY 2022-23)
Introduction
🎯 What
India Professional Tax Calculator 2023 helps calculate monthly or yearly Professional Tax deducted from salary or paid by self-employed persons as per state-wise rules.
👥 Who
Salaried employees, self-employed professionals (doctors, lawyers, freelancers), shop owners, employers estimating payroll deductions.
💡 Why
Professional Tax is mandatory in many Indian states and varies by state. This calculator helps estimate the correct tax amount easily and accurately.
📊 Professional Tax Details
💵 PT Summary
Select state and calculate
What is Professional Tax?
Professional Tax (PT) is a tax levied by state governments in India on income earned through profession, employment, or trade. It is governed by Article 276 of the Indian Constitution.
Key Points:
- Levied by State Governments (not Central Government)
- Maximum limit: ₹2,500 per year (constitutional cap)
- Rates and slabs differ from state to state
- Deducted monthly by employers or paid directly by self-employed
- Deductible under Section 16(iii) of Income Tax Act
State-wise Professional Tax Slabs (FY 2022-23)
Maharashtra
- • Up to ₹7,500: Nil
- • ₹7,501 - ₹10,000: ₹175/month
- • Above ₹10,000: ₹200/month
- Special: February deduction is doubled (₹100 extra)
Karnataka
- • Up to ₹15,000: Nil
- • Above ₹15,000: ₹200/month
West Bengal
- • Up to ₹10,000: Nil
- • ₹10,001 - ₹15,000: ₹110/month
- • ₹15,001 - ₹25,000: ₹130/month
- • ₹25,001 - ₹40,000: ₹150/month
- • Above ₹40,000: ₹200/month
Exemptions & Allowances
- Section 16(iii) Deduction: Professional Tax paid is deductible from gross total income for Income Tax purposes
- Senior Citizens: Exemption depends on state-specific rules
- Disabled Persons: Permanently disabled individuals may be exempt in certain states
- Monthly Cap: Most states have monthly caps (e.g., ₹200/month in many states)
- Annual Cap: Constitutional limit of ₹2,500 per year applies to all states
Tax Calculation Logic
Step 1: Select State
Choose your state of employment or business
Step 2: Enter Monthly Income
Input your monthly gross salary or income
Step 3: Match Slab
Income is matched against state-specific tax slabs
Step 4: Calculate Monthly Tax
Fixed tax amount as per applicable slab
Step 5: Calculate Annual Tax
Monthly tax × 12 (subject to ₹2,500 annual cap)
Step 6: Apply Exemptions
Check for disability or other state-specific exemptions
Calculation Examples
Example 1: Maharashtra
Monthly Salary: ₹25,000
Applicable Slab: Above ₹10,000
Monthly Tax: ₹200
February Tax: ₹300 (₹200 + ₹100 extra)
Annual Tax: (₹200 × 11) + ₹300 = ₹2,500
Example 2: Karnataka
Monthly Salary: ₹18,000
Applicable Slab: Above ₹15,000
Monthly Tax: ₹200
Annual Tax: ₹200 × 12 = ₹2,400
Example 3: Income Below Threshold
Monthly Salary: ₹7,000
State: Any
Professional Tax: ₹0 (Below threshold)
Frequently Asked Questions
Q: Is Professional Tax mandatory?
A: Yes, Professional Tax is mandatory in applicable states as per state laws. However, not all states levy Professional Tax.
Q: Is it applicable in all states?
A: No, only certain states levy Professional Tax. States like Delhi, Haryana, Punjab, and others do not have Professional Tax.
Q: Can Professional Tax exceed ₹2,500 per year?
A: No, ₹2,500 is the constitutional maximum limit per year as per Article 276 of the Indian Constitution.
Q: Is Professional Tax refundable?
A: No, Professional Tax is a statutory tax and is not refundable. However, it is deductible from gross income for Income Tax purposes.
Q: Who should pay Professional Tax - employer or employee?
A: For salaried employees, the employer deducts and pays PT to the government. For self-employed individuals, they must pay it directly.
Disclaimer: This India Professional Tax Calculator 2023 is for informational and educational purposes only. Professional Tax rules vary by state and may change periodically. Actual tax liability may differ based on state-specific rules, amendments, and individual circumstances. Always verify amounts with official state government notifications or your payroll department. Etaxing is not responsible for any filing decisions or legal consequences. Consult with a qualified tax professional or refer to your state's official tax department for accurate and up-to-date information before making any tax-related decisions.