The Madhya Pradesh State Tax on Professions, Trades, Callings and Employment Act, 1995 — commonly known as the Profession Tax Act — levies tax on professions, trades, callings, and employment. It’s officially titled the Madhya Pradesh Vritti Kar Adhiniyam, 1995, extends to the whole state, and is deemed to have come into force on 1 April 1995.
Employer Obligations
Registration: Employers must obtain a Certificate of Registration from the Profession Tax Assessing Authority, authorizing them to deduct professional tax from employee salaries.
Tax Deduction: Employers deduct professional tax from employee salaries or wages every month, according to the prescribed slabs.
Remittance: Deducted tax must be deposited with the state government within 10 days of the end of the month in which the deduction was made.
Returns: Employers file periodic returns detailing salaries paid and tax deducted, in the prescribed format — each return must include proof of payment (a treasury challan), without which it isn’t considered valid.
Records: Employers must maintain accurate records of salary payments and tax deductions for every employee, available for inspection by tax authorities.
Notices: Employers must comply promptly with any notices or directives from the Profession Tax Assessing Authority.
Non-compliance with these obligations — delayed registration, late payment, or failure to file returns — can result in penalties and fines.
PT Slab (Persons in Employment)
| Annual Salary/Wages | Tax Liability |
|---|---|
| Up to ₹2,25,000 | Nil |
| ₹2,25,001 to ₹3,00,000 | ₹1,500/year (₹125/month) |
| ₹3,00,001 to ₹4,00,000 | ₹2,000/year (₹166/month for 11 months, ₹174 in the 12th) |
| Above ₹4,00,000 | ₹2,500/year (₹208/month for 11 months, ₹212 in the 12th) |