Puducherry's professional tax is a local body tax on half-yearly income: nil up to ₹99,999 a half-year (about ₹16,600 a month), then ₹250, ₹500, ₹750 and ₹1,000, and ₹1,250 above ₹5 lakh. The commune panchayat or municipality collects it. For government staff, drawing officers deduct it quarterly from the May, August, November and February salaries.
Professional tax slabs in Puducherry
Professional tax in Puducherry is levied under the Puducherry Municipalities Act and Puducherry Village and Commune Panchayats Act, as amended in 2017. It is charged per half-year (April to September and October to March) by the local body. The rates below are Schedule III of Act 4 of 2017 (Gazette of 11 May 2017), applied to municipalities by G.O.Ms.No.24/F3/2017 of 4 July 2017, 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.
| Class | Half-yearly income | PT per half-year |
|---|---|---|
| I | Up to ₹99,999 | Nil |
| II | ₹1,00,000 to ₹2,00,000 | ₹250 |
| III | ₹2,00,001 to ₹3,00,000 | ₹500 |
| IV | ₹3,00,001 to ₹4,00,000 | ₹750 |
| V | ₹4,00,001 to ₹5,00,000 | ₹1,000 |
| VI | ₹5,00,001 and above | ₹1,250 |
The Act describes these as maximum amounts and the Finance Department G.O. as minimum amounts; each commune panchayat or municipality fixes its rate within the schedule, so confirm with yours.
Who deducts it and registration
The employer deducts the tax for its employees and pays the local body. The 2017 G.O. sets out the procedure for government employees: drawing and disbursing officers deduct quarterly from the salaries of May, August, November and February, the treasury remits to the local body within 15 days, and the officer gives each employee a certificate under Rule 9(a) of the Profession Tax Rules, 1976.
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
- Government staff: quarterly deductions as above. Private employers: the due dates are not stated in the documents we opened; ask the local body.
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
The official Puducherry documents we opened do not state the penalty or interest amounts. The Act provides consequences for failing to register, deduct, pay or file; read the current Act on the state portal or ask the assessing authority before relying on a figure from elsewhere.
Worked example: Puducherry
A Puducherry hotel pays a front-office executive ₹15,000, an accountant ₹40,000 and a general manager ₹90,000 a month.
| Employee | Half-yearly income | Class | PT per half-year | Year |
|---|---|---|---|---|
| Front office | ₹90,000 | I | Nil | Nil |
| Accountant | ₹2,40,000 | III | ₹500 | ₹1,000 |
| General manager | ₹5,40,000 | VI | ₹1,250 | ₹2,500 |
Getting PT right on every payslip
- Use the salary for the half-year 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.