Professional tax is a state levy on salary, capped at Rs 2,500 a year by Article 276 of the Constitution. Twenty states and union territories deduct it from employees, one (Chhattisgarh) has exempted everyone since 2011, one (Odisha) repealed its Act in 2026, and fourteen never charge it. The slabs below come from each state's own government site, with the date of the latest notification we could find.
Checked against state government sites on 27 August 2026. Used by 4,000+ companies across India for payslips and payroll records.
All 28 states and 8 union territories are listed below, in alphabetical order. States that do not charge the tax are listed too, so you do not have to guess. Each entry links to the state's own professional tax page and shows the date of the last official change we could find.
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
No Act or notification for a tax on professions found on any A&N Administration site or on India Code.
Last official update: None. Professional tax is not charged here.
State site:
Andaman and Nicobar VAT department
Monthly salary, tax per month
Andhra Pradesh levies professional tax under the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987. The salary slab sits in the First Schedule, which the state publishes as a PDF on its portal. We could not open that PDF, so we are not printing the figures here. Open the schedule link above and use what it shows.
Telangana runs the same 1987 Act, adapted in 2015, and its verified slab is listed below. The two states have shared the same slab since a 2013 amendment, but confirm on the Andhra Pradesh portal before you deduct.
Last official update: No date could be read. The portal did not load for us in August 2026.
State site:
AP Profession Tax portal
Official PT schedule PDF (AP portal)
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
No professions tax Act among the state's Acts on India Code. District descriptions of the Tax, Excise and Narcotics Department list GST, goods tax and excise only.
Last official update: None. Professional tax is not charged here.
State site:
Tax, Excise and Narcotics Department remit (Lohit district)
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Up to Rs 10,000 | Nil |
| Above Rs 10,000 and below Rs 15,000 | Rs 150 |
| Rs 15,000 and above, below Rs 25,000 | Rs 180 |
| Rs 25,000 and above | Rs 208 |
Assam Professions, Trades, Callings and Employments Taxation Act, 1947. Employers file Form III under the 1947 Rules. No February loading and no separate slab for women.
Last official update: Schedule PDF is headed "with effect from 15 October 2014". The portal footer read "last updated on 7 August 2026" when we checked.
State site:
Profession tax schedule, Commissionerate of Taxes, Assam
Commissionerate of Taxes portal
Annual salary, tax per year
| Salary band | Professional tax |
|---|---|
| Up to Rs 3,00,000 | Nil |
| Above Rs 3,00,000 up to Rs 5,00,000 | Rs 1,000 |
| Above Rs 5,00,000 up to Rs 10,00,000 | Rs 2,000 |
| Above Rs 10,00,000 | Rs 2,500 |
The slab is written on annual salary. Bihar collects the tax once a year rather than monthly, so most payroll systems carry the annual figure and deduct it in one go. The exact due date sits in the Bihar Professional Tax Rules, 2011, which we could not open on the official portal.
Last official update: Act published in the Bihar Gazette on 27 May 2011. We found no later amendment to the schedule on an official page.
State site:
Bihar Tax on Professions, Trades, Callings and Employments Act, 2011 (India Code)
Commercial Taxes Department, Bihar
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
No Chandigarh Administration or Municipal Corporation notification imposing the tax. The Punjab State Development Tax Act does not extend to the UT.
Last official update: None. Professional tax is not charged here.
State site:
Municipal Corporation Chandigarh, taxes page
Exempt since 1 April 2011
| Salary band | Professional tax |
|---|---|
| All persons covered by the Act | Exempt from 1 April 2011 |
The Chhattisgarh Vritti Kar Adhiniyam, 1995 is still on the statute book, but the state government used section 6 of the Act to exempt from all its provisions with effect from 1 April 2011. In practice no professional tax is deducted from salaries in Chhattisgarh. The old schedule printed in the Act should not be used.
Last official update: Notification dated 31 March 2011. We did not find a later notification withdrawing it.
State site:
Notification F-10/22/2011/CT/V(22) dated 31 March 2011
2011 notifications list, Commercial Tax Department
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
A 1976 Act was formally readapted to the merged UT in April 2022 and sits on India Code, but there are no rules, no rate notification and no registration or payment facility on any UT page. Treated as not in operation.
Last official update: None. Professional tax is not charged here.
State site:
India Code entry, adapted Act (gazette 21 April 2022)
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
No Act in force. Section 113(2) of the Delhi Municipal Corporation Act, 1957 lets the Corporation levy the tax with government approval, and it has not been used.
Last official update: None. Professional tax is not charged here.
State site:
Delhi Municipal Corporation Act, 1957, Ministry of Home Affairs
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
A 2009 Bill was introduced and gazetted but never brought into force. The Department of State Tax lists GST, VAT, CST, luxury, entry and entertainment tax and no professions tax.
Last official update: None. Professional tax is not charged here.
State site:
Department of State Tax, Goa
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Up to Rs 12,000 | Nil |
| Above Rs 12,000 | Rs 200 |
Gujarat's tax is collected by local bodies (municipal corporations, municipalities and panchayats) under the state Act. Some municipal pages still show the older slab from 2013 with Rs 80 and Rs 150 bands. The state schedule from April 2022 replaces those. If employment ends mid month the tax is reduced in proportion.
Last official update: Schedule PDF states it is effective from 1 April 2022.
State site:
Rate of profession tax, Commercial Tax Department, Gujarat
Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 (India Code)
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
Department of Excise and Taxation memo 1657/ST-1 dated 8 July 2019: "The State of Haryana does not levy Professional Tax".
Last official update: None. Professional tax is not charged here.
State site:
Invest Haryana, official memo
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
A 2005 Act was repealed the same year by the Himachal Pradesh Tax on Professions (Repeal) Act, 2005. The department's list of Acts it administers has no professions tax.
Last official update: None. Professional tax is not charged here.
State site:
Department of State Taxes and Excise, RTI disclosure
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
A 2005 Act exists on India Code, but no rate schedule, form or payment facility appears on the State Taxes Department site. Not collected in practice.
Last official update: None. Professional tax is not charged here.
State site:
India Code entry, J&K Act IX of 2005
Annual salary, tax per year
| Salary band | Professional tax |
|---|---|
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,001 to Rs 5,00,000 | Rs 1,200 |
| Rs 5,00,001 to Rs 8,00,000 | Rs 1,800 |
| Rs 8,00,001 to Rs 10,00,000 | Rs 2,100 |
| Above Rs 10,00,000 | Rs 2,500 |
Section 3(3) of the Act also says no tax is payable by a person whose monthly salary does not exceed Rs 15,000. Employers deduct monthly and file quarterly returns with treasury proof.
Last official update: Act gazetted 1 February 2012. Rules amended by S.O. 79 dated 22 September 2020 (procedure, not rates). No slab change found.
State site:
Jharkhand Tax on Professions, Trades, Callings and Employments Act, 2011 (India Code)
Department of Commercial Taxes, Jharkhand
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Below Rs 25,000 | Nil |
| Rs 25,000 and above | Rs 200, and Rs 300 for February (Rs 2,500 a year) |
Employers deposit by the 20th of the following month. Persons aged 60 and above, and persons with 40 percent or more permanent disability, are exempt, per the portal FAQ.
Last official update: Rs 25,000 threshold from 1 April 2023. February Rs 300 applies from February 2026 under the Amendment Act, 2025 (notification dated 15 April 2025). Karnataka Act 22 of 2026, gazetted 27 March 2026, changed return rules only.
State site:
Employer FAQ, Karnataka Profession Tax portal
Schedule, Karnataka Profession Tax portal
Profession tax notifications, Commercial Taxes Department
Half yearly income, tax per half year
| Salary band | Professional tax |
|---|---|
| Up to Rs 11,999 | Nil |
| Rs 12,000 to Rs 17,999 | Rs 320 |
| Rs 18,000 to Rs 29,999 | Rs 450 |
| Rs 30,000 to Rs 44,999 | Rs 600 |
| Rs 45,000 to Rs 99,999 | Rs 750 |
| Rs 1,00,000 to Rs 1,24,999 | Rs 1,000 |
| Rs 1,25,000 and above | Rs 1,250 |
Kerala's tax is levied by grama panchayats, municipalities and corporations under the Kerala Panchayat Raj Act, 1994 and the Kerala Municipality Act, 1994. The G.O. covers both. Income is measured per half year (April to September, October to March) and the employer remits to the local body where the employee works. Collection is half yearly.
Last official update: Revised rates apply from 1 October 2024, the second half year of 2024, per paragraph 3 of the G.O.
State site:
G.O.(Rt) No. 1149/2024/LSGD dated 27 June 2024
Profession tax online payment system FAQ, LSGD Kerala
Profession tax note, Kerala State Audit Department (6 November 2024)
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
The UT State Taxes Department describes its remit as GST and the Motor Spirit and Diesel Oil (Taxation of Sales) Act. Page last updated 1 September 2025.
Last official update: None. Professional tax is not charged here.
State site:
State Taxes Department, Ladakh
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
No Act or notification found. The Department of Planning, Statistics and Taxation pages mention VAT and UTGST only.
Last official update: None. Professional tax is not charged here.
State site:
Department of Planning, Statistics and Taxation, Lakshadweep
Annual salary, tax per year, deducted monthly
| Salary band | Professional tax |
|---|---|
| Up to Rs 2,25,000 | Nil |
| Above Rs 2,25,000 up to Rs 3,00,000 | Rs 1,500 (Rs 125 a month) |
| Above Rs 3,00,000 up to Rs 4,00,000 | Rs 2,000 (Rs 166 for eleven months, Rs 174 in the twelfth) |
| Above Rs 4,00,000 | Rs 2,500 (Rs 208 for eleven months, Rs 212 in the twelfth) |
Madhya Pradesh Vritti Kar Adhiniyam, 1995. The rounding balance goes into the last month of the year.
Last official update: Amendment Act gazetted 18 July 2018, in force from 1 April 2018. The department page labels it the current schedule.
State site:
MP Vritti Kar (Sanshodhan) Adhiniyam, 2018, Act 20 of 2018
Profession Tax Act page, Commercial Tax Department, MP
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Men, up to Rs 7,500 | Nil |
| Men, Rs 7,501 to Rs 10,000 | Rs 175 |
| Men, above Rs 10,000 | Rs 200, and Rs 300 for February (Rs 2,500 a year) |
| Women, up to Rs 25,000 | Nil |
| Women, above Rs 25,000 | Rs 200, and Rs 300 for February (Rs 2,500 a year) |
Employers hold a PTRC registration and deduct monthly. The Rs 175 band for men has stood unchanged through the 2023 amendment; the department schedule is the place to confirm it.
Last official update: Women's exemption raised to Rs 25,000 from 1 April 2023. The department's schedule file is titled "updated up to 31 March 2025" and the listing entries are dated 26 February 2026.
State site:
Rate schedules under the Professions Tax Act, 1975, Maharashtra GST Department
L.A. Bill XIII of 2023 (women's threshold raised to Rs 25,000), Maharashtra Legislature
Maharashtra State Tax on Professions Act, 1975, as modified to 30 June 2023
Annual salary, tax per year
| Salary band | Professional tax |
|---|---|
| Up to Rs 50,000 | Nil |
| Above Rs 50,000 up to Rs 75,000 | Rs 1,200 |
| Above Rs 75,000 up to Rs 1,00,000 | Rs 2,000 |
| Above Rs 1,00,000 up to Rs 1,25,000 | Rs 2,400 |
| Above Rs 1,25,000 | Rs 2,500 |
The portal FAQ says tax is paid once a financial year, on or before 30 September, and that employers pay on behalf of salaried staff. Late payment interest is 2 percent a month.
Last official update: Schedule from the Eighth Amendment, Manipur Gazette 31 August 2012. A Ninth Amendment Act was gazetted on 6 March 2020; we could not open its text, so check it before relying on this table.
State site:
Manipur Professions, Trades, Callings and Employments Taxation (Eighth Amendment) Act, 2012 (India Code)
Manipur Professional Tax portal
Portal FAQ dated 8 March 2019
Annual gross income, rates by notification
The 2022 amendment removed the rate schedule from the Act. Rates are now whatever the state government notifies, and the rules say tax is worked out on total annual gross income "as specified in the Schedule notified by Government". We could not find that notification on meggst.gov.in or meghalaya.gov.in, and the tables on private payroll sites disagree with each other. We are not printing figures. Ask the Taxation Department (helpdesk.comtax-meg@gov.in) for the current notified schedule.
Collection in the district council areas is entrusted to the autonomous district councils, under a 1996 order hosted on the department site.
Last official update: Amendment Act assented 23 September 2022, gazetted 27 September 2022. Rules dated 18 January 2023.
State site:
Meghalaya Professions, Trades, Callings and Employments Taxation (Amendment) Act, 2022
Amendment Rules, notification ERTS(T) 122/2021/Pt.I/33 dated 18 January 2023
Professional tax forms, Taxation Department, Meghalaya
Monthly gross salary, tax per month
| Salary band | Professional tax |
|---|---|
| Up to Rs 5,000 | Nil |
| Rs 5,001 to Rs 8,000 | Rs 75 |
| Rs 8,001 to Rs 10,000 | Rs 120 |
| Rs 10,001 to Rs 12,000 | Rs 150 |
| Rs 12,001 to Rs 15,000 | Rs 180 |
| Rs 15,001 to Rs 20,000 | Rs 195 |
| Above Rs 20,000 | Rs 208 |
The notification also allows an annual lump sum equal to twelve times the monthly figure. The 1996 Rules run on an annual return cycle: the employer deducts and files Form IV within thirty days of the end of the return period.
Last official update: Notification dated 11 July 2024. The department site showed "updated on 19 August 2026".
State site:
PT schedule notification J.17011/1/2017-TAX dated 11 July 2024, Taxation Department, Mizoram
Mizoram Professions, Trades, Callings and Employments Taxation Act, 1995
Taxation Department, Mizoram
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Below Rs 4,000 | Nil |
| Rs 4,000 and above, below Rs 5,000 | Rs 35 |
| Rs 5,000 and above, below Rs 7,000 | Rs 75 |
| Rs 7,000 and above, below Rs 9,000 | Rs 110 |
| Rs 9,000 and above, below Rs 12,000 | Rs 180 |
| Rs 12,000 and above | Rs 208 |
Where a person falls under more than one entry, the higher rate applies. The 1968 Act text on India Code still prints the original schedule from the 1960s; use the department's rate sheet instead.
Last official update: Slab from the Fourth Amendment Act, 2012, gazetted 9 January 2013. Public notice dated 6 February 2022 directs annual registration and payment.
State site:
Professional tax rate, Office of the Commissioner of State Taxes, Nagaland
Online registration and payment portal
Public notice on professional tax dated 6 February 2022
Repealed in 2026
| Salary band | Professional tax |
|---|---|
| All employees | No deduction. The Act was repealed by the Odisha State Tax on Professions, Trades, Callings and Employments (Repeal) Ordinance, 2026 |
We could not open the ordinance text, so we have not printed its effective date. Liabilities for periods up to the repeal are not wiped out by a repeal on its own, so keep the earlier records and returns in order. If you deducted in April 2026 or later, check the ordinance and the Finance Department's instructions to drawing officers before refunding.
Last official update: Repeal Ordinance dated 21 April 2026. The Commissionerate page still showed the old slab (nil up to Rs 1,60,000, Rs 125 a month to Rs 3,00,000, Rs 200 a month above with Rs 300 in the last month) when we checked in August 2026.
State site:
Tax on profession notifications, Finance Department, Odisha (Repeal Ordinance, No. 1496 dated 21 April 2026)
Professional tax page, Commissionerate of CT and GST, Odisha
Half yearly income, maximum tax per half year
| Salary band | Professional tax |
|---|---|
| Up to Rs 99,999 | Nil |
| Rs 1,00,000 to Rs 2,00,000 | Rs 250 |
| Rs 2,00,001 to Rs 3,00,000 | Rs 500 |
| Rs 3,00,001 to Rs 4,00,000 | Rs 750 |
| Rs 4,00,001 to Rs 5,00,000 | Rs 1,000 |
| Rs 5,00,001 and above | Rs 1,250 |
The levy is by municipalities and commune panchayats under sections 144 to 151 of the 1973 Act. Schedule IV sets maxima, which Pondicherry Municipality applies as its rates. A person is liable if they hold the post for at least 60 days in the half year. Employers deduct under section 151 and file a statement after each half year. Government departments deduct quarterly under a separate 2017 G.O.
Last official update: Schedule IV substituted by Act 5 of 2017, in force from gazette publication on 17 May 2017.
State site:
Know about profession tax, Pondicherry Municipality
Puducherry Municipalities (Amendment) Act, 2017, Gazette 17 May 2017
Puducherry Municipalities Act, 1973 (India Code)
Flat rate, tax per month (State Development Tax)
| Salary band | Professional tax |
|---|---|
| Persons assessable under the head Income from Salaries and/or Wages under the Income Tax Act, 1961 | Rs 200 |
| Persons assessable under the head Income from Business and/or Profession | Rs 200 |
| Optional lump sum for either group (from the 2025 amendment) | Rs 2,200 a year, payable by 30 April |
Punjab does not call this professional tax. It is the State Development Tax, a tax under Article 276, and payroll treats it the same way. Who counts as "assessable" turns on income tax thresholds; the portal carries a 13 December 2024 clarification letter on those thresholds which we did not read.
Last official update: Act gazetted 19 April 2018. Amendment Act 10 of 2025 assented 29 July 2025, gazetted 9 August 2025; the lump sum option opened on the portal with Form 17 the same day.
State site:
Punjab State Development Tax Act, 2018
Punjab State Development Tax (Amendment) Act, 2025, gazette 9 August 2025
PSDT portal, Department of Excise and Taxation, Punjab
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
The Rajasthan Tax on Professions, Trades, Callings and Employments Act, 2000 is listed on India Code but has never been brought into operation. No portal collects it.
Last official update: None. Professional tax is not charged here.
State site:
India Code entry, Rajasthan Act of 2000
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Rs 20,000 or less | Nil |
| Rs 20,001 to Rs 30,000 | Rs 125 |
| Rs 30,001 to Rs 40,000 | Rs 150 |
| Rs 40,001 and above | Rs 200 |
Employers pay deducted tax within fifteen days of the end of every month and file a quarterly return in Form 5 within the month after the quarter.
Last official update: Act gazetted 1 April 2006, Rules 18 July 2006. The Commercial Taxes Division site would not open for us, so we could not check for a later notification.
State site:
Sikkim Tax on Professions, Trades, Callings and Employments Act, 2006, Finance Department
Sikkim Tax on Professions Rules, 2006, Commercial Taxes Division
Half yearly income, tax per half year (Greater Chennai Corporation shown)
| Salary band | Professional tax |
|---|---|
| Up to Rs 21,000 | Nil |
| Rs 21,001 to Rs 30,000 | Rs 180 |
| Rs 30,001 to Rs 45,000 | Rs 425 |
| Rs 45,001 to Rs 60,000 | Rs 930 |
| Rs 60,001 to Rs 75,000 | Rs 1,025 |
| Rs 75,001 and above | Rs 1,250 |
Tamil Nadu has no state level professional tax department. Each corporation, municipality, town panchayat and village panchayat sets its own slab within the Rs 1,250 per half year ceiling. The Chennai figures above do not apply in Coimbatore, Madurai or any other local body; check that body's own schedule. A slab sheet on the state single window portal still shows Chennai's pre 2018 rates and is out of date.
Last official update: GCC table is headed "w.e.f. II/2024-2025", so the current column applies from 1 October 2024. Half yearly collection windows are 1 to 30 April and 1 to 30 October.
State site:
Revenue Department, Greater Chennai Corporation
Profession tax procedure, Greater Chennai Corporation
Tamil Nadu District Municipalities Act, 1920, Chapter VI-A (India Code)
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Up to Rs 15,000 | Nil |
| Rs 15,001 to Rs 20,000 | Rs 150 |
| Above Rs 20,000 | Rs 200 |
Employers file a monthly Form V return with the challan. Interest on late payment is 2 percent a month under the rules.
Last official update: Slab substituted by Act 12 of 2013. Adapted to Telangana by G.O.Ms.No.169 dated 18 September 2015. Latest listed G.O. is No. 30 dated 8 March 2021 (rules).
State site:
Schedule, Telangana Commercial Taxes Department
Telangana Tax on Professions Act, 1987 (India Code)
Profession tax registration portal
Monthly gross salary, rates by notification
The Act PDF on the department site carries the original 1997 schedule, which is obsolete. Because we could not read the 2018 notification or the 2025 amendment, we are not printing figures. Use the notifications link above. Employers file a monthly Form VII return under the 1998 Rules, with quarterly, half yearly or annual returns on permission.
Last official update: Current rates were notified in Tripura Gazette No. 564 dated 8 August 2018, and an amendment to that notification was posted by the department in February 2025. We could not open either document.
State site:
Tripura Professions, Trades, Callings and Employments Taxation Act, 1997, Commissionerate of Taxes and Excise
Profession tax notifications, Commissionerate of Taxes and Excise
Tripura profession tax portal
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
No Act or notification found on the Commercial Taxes Department site or India Code.
Last official update: None. Professional tax is not charged here.
State site:
Commercial Taxes Department, Uttar Pradesh
No professional tax
| Salary band | Professional tax |
|---|---|
| All employees | Not levied |
The Commercial Tax Department's own list of Acts it administers (VAT, CST, entry tax, luxury tax) has no professions tax.
Last official update: None. Professional tax is not charged here.
State site:
Commercial Tax Department, Uttarakhand
Monthly salary, tax per month
| Salary band | Professional tax |
|---|---|
| Up to Rs 10,000 | Nil |
| Above Rs 10,000 up to Rs 15,000 | Rs 110 |
| Above Rs 15,000 up to Rs 25,000 | Rs 130 |
| Above Rs 25,000 up to Rs 40,000 | Rs 150 |
| Above Rs 40,000 | Rs 200 |
Companies registered under the Companies Act pay a separate flat Rs 2,500 a year on enrolment. The rules PDF on the site dates from 2007 and predates the move to online Form III returns, so confirm return timing on the profession tax portal.
Last official update: Schedule effective 1 April 2014. The Rs 8,501 to Rs 10,000 band was cut from Rs 90 to nil from 1 August 2016 (notification 1197-F.T. dated 16 August 2016).
State site:
Profession tax schedule with effect from 1 April 2014, Directorate of Commercial Taxes, West Bengal
Profession tax rules, Directorate of Commercial Taxes
Directorate of Commercial Taxes, West Bengal
Six moves since mid 2024 that affect payroll setups, in date order.
The mechanics are alike from state to state even though the numbers differ. The employer registers with the state department or the local body, deducts the slab amount from salary, deposits it, and files a return. The state Acts make the employer liable for the tax whether or not it was actually deducted, so a missed deduction becomes the company's cost, not the employee's.
Where the states diverge is timing. Monthly deposit with a monthly or annual return is the common pattern (Karnataka by the 20th of the next month, Telangana with a monthly Form V, Sikkim within fifteen days). Kerala, Tamil Nadu and Puducherry work in half years, with the local body issuing a demand or opening a collection window. Bihar, Manipur and Mizoram run an annual cycle. A company with staff in four states can end up with four different calendars, which is the usual reason this deduction goes wrong in a small payroll.
Three slab quirks trip people up. Maharashtra has separate thresholds for men and women. Karnataka and Maharashtra deduct Rs 300 in February so the year lands exactly on the Rs 2,500 ceiling. Madhya Pradesh and the old Odisha schedule push the rounding into the twelfth month instead. If your payroll tool treats every state as a flat monthly figure, it will be a few rupees out in at least one of them.
The deduction shows on the payslip and reduces taxable salary. Under section 16(iii) of the Income Tax Act it is allowed as a deduction from salary income, though only for employees who stay on the old tax regime. If you want the wider picture of what else comes off a payslip, the ESI contribution page and the PF calculator cover the two other statutory lines, and the labour welfare fund entry covers the small one people forget.
Offrd carries the state slab inside the salary structure. You set the work state for each employee, the PIN code resolves city, district and state, and the payslip picks up the right deduction, including the February loading in Karnataka and Maharashtra and the gender split in Maharashtra. The payslip generator prints the line, and the payroll module gives you the monthly totals per state so whoever pays the challan has the number ready.
What Offrd does not do is file. The challan and the return go to the state portal or the local body, and that stays with your accountant or CA. Offrd hands over clean figures; it does not log in to a state site on your behalf. The same honest boundary runs through the whole statutory compliance feature: EPF, ESI, professional tax and gratuity are computed at the document level, and the filings are yours.
Setup takes under two minutes and you start with 50 free credits. If you want to see the slab logic on a real payslip first, book a demo, or read the shorter professional tax glossary entry for the definitions.
50 free credits on signup. No card, no monthly minimum, setup under two minutes.
Every figure on this page was read from one of the documents below. No private payroll site or vendor table was used. If a link stops working, the department name beside it tells you where to look.
Some state portals refuse automated readers and a few had expired security certificates when we checked. Those documents were opened by hand in a browser on 27 August 2026.
