Professional Tax in Maharashtra

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.

Who Pays Professional Tax in Maharashtra

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:

  • Senior citizens who have completed 65 years of age,

  • Parent of a mentally challenged child,
  • Persons or parents of children suffering from physical disability,
  • Physically handicapped persons with 40 % or more disability and,
  • Badli workers in the textile industry.

How to Pay Professional Tax in Maharashtra?

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.

Professional Tax Slab Rates in Maharashtra

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.

Monthly Salary Professional Tax Levied (P.M)
Up to Rs. 7500/- NIL
Rs. 7501 – Rs. 10000/- Rs. 175
Above Rs. 10000/- Rs. 200 & Rs. 300
  • Maharashtra Government levies Professional Tax @ Rs. 200 for 11 months and Rs. 300 in the last month.
  • Women earning Salary up to Rs. 10000/- per month are exempted from paying Professional Tax