How to calculate professional tax on salary in india

If you’re a salaried employee, you’ve probably come across the term ‘professional tax’ on your payslips or Form 16.

Professional tax slab

But do you really know what it is and why it’s deducted from your salary? Let’s shed some light on the subject and explore whether it only affects the salaried class.

What Is Professional Tax?

Professional tax is a tax imposed on various professions, trades, and employment based on their income levels.

It applies to employees, freelancers, professionals, and business owners whose income exceeds a specific threshold set by each state.

This tax is directly deducted from your gross salary by your employer, as it is levied and collected by the state government.

The maximum amount charged is Rs 2,500, but the specific rates and slabs can vary from state to state.

How to Calculate Professional Tax on Salary?

The calculation of Professional Tax (PT) on salary varies by state in India.

Here’s a general overview and steps:

1. Check State-Specific Appl
   how to calculate professional tax on salary in maharashtra
   how to calculate professional tax on salary in karnataka