Professional Tax (PT) is a tax levied on the income earned by salaried employees and self-employed professionals who earn income working in government and private organizations and any other modes of employment, to the state government. Different states have varying methods of calculating professional tax. The professional tax, in Maharashtra, is regulated by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. The revenue collected is used towards the Employment Guarantee Scheme and the Employment Guarantee Fund.

Professional tax is to be paid by both salaried and self-employed individuals, who work in government or private organizations or any other modes of employment. It is subject to a minimum limit of earning and levied as per the state’s applicable slab rates.

Categories of individuals that can claim exemption from paying professional tax:

In case of salaried professionals, professional tax is deducted by employers. They deduct it and deposit the total amount with the municipal corporation. Non-salaried individuals can pay it directly to the government via local officials appointed to collect tax or they can pay it online.

The Government of Maharashtra of also revised its professional tax slab rates for the financial year 2015-16 which has since been the slab rate applicable to deduct professional tax by employers and continue to the financial year 2019-2020. It offers special privileges for women professional tax payers. A woman whose monthly income is Rs.1000 of less than Rs.1000, she is exempted from paying professional tax in Maharashtra. The professional tax to be remitted to the Maharashtra Government is subject to the minimum income level of an individual. An individual earning less than 7,500 or up to 7,500 does not have to pay any professional tax in Maharashtra.