Madhya Pradesh sets PT on annual salary: nil up to ₹2,25,000, ₹1,500 up to ₹3 lakh, ₹2,000 up to ₹4 lakh and ₹2,500 above ₹4 lakh. The employer deducts it monthly (₹125, ₹166 or ₹208, with ₹174 or ₹212 in the last month), holds a certificate of registration and pays by challan within 10 days of the end of each month.
Professional tax slabs in Madhya Pradesh
Professional tax in Madhya Pradesh is levied under the Madhya Pradesh Vritti Kar Adhiniyam, 1995, as amended by Act 20 of 2018. It is fixed on annual salary or income. The rates below are 1 April 2018 (MP Vritti Kar (Sanshodhan) Adhiniyam, 2018); no later rate notification was found, as published on the official source listed at the end of this page (checked 21 October 2026). Article 276 of the Constitution caps professional tax at ₹2,500 a year per person.
| Annual salary | PT a year | Monthly deduction |
|---|---|---|
| Up to ₹2,25,000 | Nil | Nil |
| ₹2,25,001 to ₹3,00,000 | ₹1,500 | ₹125 |
| ₹3,00,001 to ₹4,00,000 | ₹2,000 | ₹166 for 11 months, ₹174 in the 12th month |
| Above ₹4,00,000 | ₹2,500 | ₹208 for 11 months, ₹212 in the 12th month |
Madhya Pradesh slabs are on annual salary, not monthly. A person earning ₹20,000 a month (₹2,40,000 a year) is in the ₹1,500 slab.
Who deducts it and registration
Section 4 makes the employer deduct the tax monthly. Section 8 requires the employer to obtain a certificate of registration from the profession tax assessing authority within 30 days of becoming liable. The MPCTD registration checklist sets out the documents.
The employee does not pay separately when the employer deducts: the deduction on the payslip is the employee's tax, and the employer is liable if it fails to deduct or pay.
Due dates and payment
- Tax deducted is paid by treasury challan within 10 days of the end of the month (section 12(2)).
- Quarterly return in Form 7 by the 15th of the month after the quarter (Rule 11(1)); an annual return in Form 8 is allowed with permission. The Rules copy on the portal is undated, so confirm the current return periodicity.
Keep the challan or payment receipt for each period and reconcile it with the payroll register: a mismatch between what payslips show and what was paid is the most common finding when the department checks an employer.
Penalties and interest
From the Act and Rules as published on the official site:
- Late registration: up to ₹20 a day, with a maximum of ₹2,500 (section 8(4)).
- False information: up to ₹500 (section 8(5)).
- Late return: up to ₹20 a day (section 9(3)).
- Non-payment: 2% a month of the tax due, up to two-thirds of the tax (section 13).
Worked example: Madhya Pradesh
An Indore pharma distributor has three employees for the full year.
| Monthly salary | Annual salary | PT a year | Monthly deduction |
|---|---|---|---|
| ₹18,000 | ₹2,16,000 | Nil | Nil |
| ₹30,000 | ₹3,60,000 | ₹2,000 | ₹166 × 11 + ₹174 |
| ₹40,000 | ₹4,80,000 | ₹2,500 | ₹208 × 11 + ₹212 |
Check: ₹166 × 11 = ₹1,826, plus ₹174 = ₹2,000; ₹208 × 11 = ₹2,288, plus ₹212 = ₹2,500. For someone who joins mid-year, estimate the year's salary to pick the slab and correct it in the last month.
Getting PT right on every payslip
- Use the expected annual salary to pick the slab, and recheck after every raise or arrears payment.
- Register in each state where you employ people: PT follows the place of work, not the head office.
- Show PT as a separate deduction on the payslip, next to PF, ESI and TDS.
- Under the new income-tax regime PT is not deductible from salary income; under the old regime it is.
Check take-home pay with the salary calculator, the employer and employee shares with the PF calculator and ESI calculator, and show every deduction clearly using the salary slip format. FundRaksha HR calculates professional tax with PF, ESI and TDS on each payroll run and produces the PT, PF ECR and ESI files, so the deduction on the payslip and the amount paid agree. Compare all states on the professional tax slabs by state page.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.