What Is Professional Tax?
Professional Tax is levied by state governments on individuals earning income from employment, profession, or trade. Despite its name, it applies to all salaried employees, not just professionals. Key facts:- Maximum annual limit: ₹2,500 (as per Article 276 of the Constitution of India)
- Deductible from income tax: PT paid reduces your taxable salary only under the old tax regime. The new regime does not allow it.
- State-specific: Not all states levy PT, and the slabs differ by state
Maharashtra PT Slabs
Omnivoo employees work remotely and are treated as Maharashtra-based for statutory purposes, so Maharashtra PT applies:
The February figure is higher so the year totals the ₹2,500 cap: 11 months x ₹200 + ₹300 in February = ₹2,500. The February bump applies only to employees in the ₹200 slab.
Women pay no PT on a monthly salary up to ₹25,000. Above ₹25,000 the ₹200 slab (₹300 in February) applies as above.
The slab is tested on your regular monthly salary. A bonus or gratuity paid in a month does not push you into a higher slab.
How Omnivoo Handles PT
- Automatic calculation: Omnivoo applies the correct slab based on your monthly salary and, for the women’s exemption, the gender on your employee profile.
- Monthly deduction: PT is deducted from your gross salary each month and shown as a separate line on your payslip.
- February cap: Omnivoo applies the February adjustment automatically so your annual PT never exceeds ₹2,500.
- Filing and deposit: Omnivoo deposits PT with the state government and files the required returns. You do not need to do anything.
PT on Payslip
Professional Tax appears as a separate deduction line on your payslip:- Monthly deduction: ₹175 or ₹200, depending on your gross salary (₹300 in February for the top slab)
- Annual total: Maximum ₹2,500
- Tax benefit: The amount is deductible from your taxable income under the old tax regime