Professional Tax in Gujarat (2026): Slab, Who Collects It, Registration and Due Dates

Gujarat's professional tax looks simple — ₹200 a month on salaries above ₹12,000 — but who you pay, and how much a business owes for itself, depends on where in the state you are. This guide is for employers, traders, companies and professionals in Ahmedabad, Surat, Vadodara, Rajkot and the rest of Gujarat. It covers the current salary slab, the annual tax for firms, companies and GST suppliers, why Amdavad Municipal Corporation charges a different figure from the State, registration and enrolment, due dates, penalties and worked rupee examples.

Quick answer

In Gujarat, salaried employees pay nil up to ₹12,000 a month and ₹200 a month above it (₹2,400 a year). The tax goes to the designated authority — the municipal corporation in cities such as Ahmedabad (AMC) and Surat (SMC), the municipality or district panchayat elsewhere, or the State. Businesses and professionals pay a separate annual tax by 30 September.

• Employers with 20+ staff pay within 15 days after the month ends (20+ employees) or quarter ends (fewer)

• Firms, companies and professionals: ₹1,000 a year where the State collects, ₹2,000 a year in Ahmedabad

• GST suppliers with turnover in Gujarat above ₹10 lakh: ₹2,400 a year at State rates

• Enrol within 60 days; late payment carries 12% a year (1% a month) interest

Gujarat professional tax slab for salaried employees

Gujarat levies professional tax under the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976. For salaried people, the rate has been the same since 1 April 2022, when a State notification replaced the old graded slabs with a single exemption limit:

The rate is the same for government and private employees. Unlike Maharashtra and Karnataka, Gujarat does not add a higher February deduction, so a full year stays at ₹2,400 — under the ₹2,500 a year limit in Article 276 of the Constitution.

Before April 2022, smaller deductions applied in lower salary bands. Some payroll pages still show them. They are gone: the Amdavad Municipal Corporation's own table now lists every band below ₹12,000 as zero. One small wording difference is worth knowing. The State schedule charges tax on salary "more than ₹12,000", while AMC's table says "₹12,000 or above". For someone paid exactly ₹12,000, follow the State notification (nil), and confirm with your zone office if AMC raises it.

What counts as salary. Surat Municipal Corporation's FAQ, following section 17 of the Income-tax Act, includes basic pay, dearness allowance and other regular payments, and perquisites or profit share paid instead of salary. Bonus and gratuity are left out. Where wages are paid by the day or week, you work out the monthly figure from what is actually paid for the month. If someone leaves part-way through a month, the State schedule reduces that month's tax proportionately.

Who collects it: designated authorities

This is what makes Gujarat different. Since 1 April 2008, the State has appointed designated authorities to levy and collect professional tax in their own areas:

• Municipal corporations within corporation limits — for example Amdavad Municipal Corporation (AMC) and Surat Municipal Corporation (SMC), and the other city corporations.
• Municipalities within municipal limits.
• District panchayats in their areas.
• The State Government (Commercial Tax Department) everywhere else.

In a city, both the employer's deductions and the business's own tax are paid to the corporation. AMC collects at its City Civic Centres and online; SMC offers online services for both certificates (registration and enrolment) on its website. Where the State is the authority, amendment rules issued in 2022 moved registration, enrolment, payment and returns onto commercialtax.gujarat.gov.in, and people enrolled up to 23 May 2022 outside the portal had to submit their details in Form 3A.

Annual tax for firms, companies, traders and professionals

Everyone other than a salaried employee falls under entries 2 to 10 of Schedule I. The Act sets a maximum rate for each entry; the State notifies a minimum; and each designated authority fixes its own figure between the two. Until an authority fixes its rate, the State's minimum applies. That is why the same company can owe different amounts in Ahmedabad and in a taluka town.

Annual professional tax for enrolled persons in Gujarat

Who	State Government as authority	Amdavad Municipal Corporation
Professionals — lawyers, doctors, CAs, architects, engineers, consultants, insurance agents, contractors, brokers, tutors, courier and tour operators	₹1,000 a year	₹2,000 a year
Private and public limited companies, banks	₹1,000 a year	₹2,000 a year
Partnership firms	₹1,000 a year	₹2,000 a year
Factory occupiers; shops and establishments averaging more than five employees a day	₹1,000 a year	₹2,000 a year
GST supplier, turnover in Gujarat up to ₹5 lakh	Nil	Check with AMC
GST supplier, ₹5–10 lakh, registered under GST	₹1,250 a year	Check with AMC
GST supplier, above ₹10 lakh	₹2,400 a year	Check with AMC

Professionals — lawyers, doctors, CAs, architects, engineers, consultants, insurance agents, contractors, brokers, tutors, courier and tour operators

State Government as authority

₹1,000 a year

Amdavad Municipal Corporation

₹2,000 a year

Private and public limited companies, banks

State Government as authority

₹1,000 a year

Amdavad Municipal Corporation

₹2,000 a year

Partnership firms

State Government as authority

₹1,000 a year

Amdavad Municipal Corporation

₹2,000 a year

Factory occupiers; shops and establishments averaging more than five employees a day

State Government as authority

₹1,000 a year

Amdavad Municipal Corporation

₹2,000 a year

GST supplier, turnover in Gujarat up to ₹5 lakh

State Government as authority

Nil

Amdavad Municipal Corporation

Check with AMC

GST supplier, ₹5–10 lakh, registered under GST

State Government as authority

₹1,250 a year

Amdavad Municipal Corporation

Check with AMC

GST supplier, above ₹10 lakh

State Government as authority

₹2,400 a year

Amdavad Municipal Corporation

Check with AMC

The GST entry (7A) was inserted by Gujarat Act 10 of 2021 and the State's rates for it apply from 2 December 2021. A supplier with turnover of ₹5–10 lakh who is not registered under GST pays nil at State rates; registered ones pay ₹1,250 a year. AMC's published table still uses the older VAT-dealer entry, listing ₹2,500 for dealers with turnover above ₹2.5 lakh; ask your zone office which entry it applies to GST suppliers before you pay.

Three rules from the State schedule decide most real cases:

1. Highest entry wins. If you fall under more than one entry — a GST-registered partnership firm that also runs a factory — you pay under the one entry with the highest rate, not all of them.
2. Whole-year liability. Entries 2 to 10 are annual. Starting in February still means the full year's tax.
3. Branches are separate. Under the 2008 notification each branch of a firm, company or society is treated as a separate person, and AMC and SMC both ask each branch to enrol and pay. Where one person would otherwise owe the same tax to two authorities, the State schedule says to pay where the liability is highest.

Registration and enrolment

Gujarat uses two certificates, with form numbers from the Profession Tax Rules:

• Registration certificate (employer) — apply in Form 1 when any employee earns more than ₹12,000 and you must deduct tax. You then deposit deductions with a Form 5 declaration.
• Enrolment certificate (own tax) — apply in Form 3 for the business or professional's own annual tax, within 60 days of the date liability arises. No annual return is needed for enrolment; you simply pay each year.

AMC asks for proof that the business has started, the GST (earlier VAT) certificate, PAN, the shops and establishments registration, the company's incorporation papers, the property tax bill for the premises and, for older units, the last three years' challans. SMC adds the rent agreement for rented premises, the partnership deed for firms, and the memorandum and articles for companies. In a city, you apply at the zone's professional tax office or civic centre, or through the corporation's online service; elsewhere, through the Commercial Tax portal.

Getting started in Gujarat

1. 1

   Identify your designated authority

   Municipal corporation if your premises are inside its limits; otherwise the municipality, district panchayat or the State.

2. 2

   Register as an employer (Form 1)

   As soon as one employee earns more than ₹12,000 a month. In Surat, use SMC's online professional tax RC service; in Ahmedabad, the zone office or online services.

3. 3

   Enrol the business (Form 3)

   Within 60 days of starting. Enrol each branch separately.

   Tip: Late enrolment costs ₹10 a day in Ahmedabad, on top of the tax.

4. 4

   Deduct and deposit

   Deduct ₹200 from each salary above the threshold and deposit with Form 5 within 15 days after the month ends (20+ employees) or quarter ends (fewer).

5. 5

   Pay your own tax every year

   By 30 September — AMC accepts payment from 1 April. Keep every receipt.

   Gujarat Commercial Tax portal

Due dates in Gujarat

Gujarat professional tax calendar

Within 60 days of liability

Enrol (Form 3); register as an employer (Form 1) before the first deduction

15th of the following month

Employers with 20 or more employees deposit the month's deductions with Form 5

15 Jul, 15 Oct, 15 Jan, 15 Apr

Employers with fewer than 20 employees deposit each quarter's deductions

1 April – 30 September

Enrolled persons pay the year's tax (if enrolled before 31 August)

October

SMC issues Form 12 demand notices to enrolled persons who haven't paid

One month after enrolment

Tax for persons enrolled after 31 August

The employer rule comes from the corporations' FAQs: an employer with 20 or more staff deposits within 15 days after the month ends; one with fewer than 20 deposits within 15 days after each three-month period. Quarterly dates above assume calendar quarters from April; check the period your authority uses on your registration. AMC's FAQ puts the enrolled persons' date as the month of September for anyone enrolled before 31 August, and one month from enrolment otherwise. SMC phrases it as payment by 30 September.

Worked examples in ₹

Example 1 — a single employee. Hetal earns ₹18,500 a month in Vadodara. Her employer deducts ₹200 every month: ₹2,400 for the year. If she earned ₹11,800, the deduction would be nil.

Example 2 — a Surat textile trading firm with 24 staff. Eight staff earn ₹10,000–₹12,000 and sixteen earn ₹14,000–₹45,000. Monthly deduction: 16 × ₹200 = ₹3,200. With 24 employees (20 or more), the firm deposits monthly: September's ₹3,200 is due by 15 October 2026 with Form 5. The firm itself is a registered partnership and GST supplier with turnover above ₹10 lakh — under the highest-entry rule it pays one annual tax to SMC, at whatever rate SMC applies for its highest entry.

Example 3 — the same firm in a small town. If the same firm's only premises were in a village where the State is the designated authority, its own tax would be ₹2,400 a year (entry 7A beats the ₹1,000 a year partnership entry). The staff deductions don't change.

Example 4 — a private limited company with two Ahmedabad branches. Each branch is a separate person: 2 × ₹2,000 a year = ₹4,000 a year to AMC, by 30 September, plus ₹200 a month for each employee above ₹12,000.

Example 5 — paying late in Surat. A CA in Surat owes ₹2,000 for the year and pays on 10 January instead of by 30 September. Interest at 12% a year (1% a month) for a little over three months is about ₹60–₹80, and because payment came in the January–March window, the phased penalty is 10% (₹200). Paying by 31 October, after the Form 12 notice, would have avoided the phased penalty.

Our free salary slip generator shows the professional tax line on each payslip, so employees above and below ₹12,000 are easy to check.

Joiners, leavers, part-time staff and growing headcount

Joiners. Test each month's actual salary. A person who joins on the 18th and is paid ₹7,000 for the part-month is below ₹12,000 for that month and pays nothing, even if the full monthly salary is ₹14,000. From the next full month the ₹200 applies.

Leavers. The State schedule says a person who stops being a salary earner before the month ends has that month's tax reduced proportionately. In practice most payroll software simply applies the slab to the final month's actual pay, which gives the same answer for anyone whose last payout drops below the threshold.

Monthly Gujarat PT run

Step 1

Salary actually paid this month

Step 2

Above ₹12,000?

ignore bonus, gratuity

Step 3

Deduct ₹200

else nil

Step 4

Form 5 deposit

monthly if 20+ staff

Step 5

Keep receipt

Daily-wage and part-time staff. Work out the monthly figure from what is paid for the month. A helper paid ₹500 a day for 26 days earns ₹13,000 that month and is liable; in a month with 20 working days the same person earns ₹10,000 and is not.

Crossing 20 employees. An employer that grows from 18 to 22 staff moves from quarterly to monthly deposits. Start depositing monthly from the month headcount reaches 20, and tell the professional tax office so your registration shows the right frequency. Falling back below 20 doesn't automatically switch you back; ask the authority before changing.

Shops and establishments with more than five staff. Crossing an average of five employees a day also brings the business itself into the enrolment entry for shops and establishments. If the business is already enrolled under another entry — as a GST supplier or a firm — the highest-entry rule means it still pays only once.

Penalties and recovery

Interest. Surat Municipal Corporation charges interest at 1% a month — 12% a year — on late payment, both for enrolled persons and for employers who deposit late.

Phased penalty in Surat. After 30 September, SMC sends defaulting enrolled persons a demand notice in Form 12 during October. If the tax isn't paid by 31 October, a penalty is added in steps on top of interest: 5% for payment from 1 November to 31 December, 10% from 1 January to 31 March, 15% from 1 April to 30 June, and 20% from 1 July.

Late enrolment. AMC's FAQ puts the penalty for failing to enrol within the time limit at ₹10 a day.

Recovery and prosecution. Both corporations say they can recover tax, interest and penalty by attaching bank accounts and selling the defaulter's property, and can file a prosecution under the Act. For employers, the responsibility to deduct and pay is the employer's own, so the corporation recovers from the employer, not the staff.

We have quoted municipal FAQs because they are what the authorities apply. Other corporations, municipalities and the State may follow different schedules for penalties, so check your authority's notice before calculating.

Exemptions

Surat Municipal Corporation's FAQ lists three groups who don't pay as enrolled persons: individuals over 65; persons with 40% or more physical disability who hold a civil surgeon's certificate; and traders with annual turnover below ₹2.5 lakh. On the salary side, anyone earning up to ₹12,000 a month is outside the tax. Keep the certificate or age proof in the employee or enrolment file.

Gujarat professional tax checklist

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• Identify the designated authority for each premises — corporation, municipality, district panchayat or State
• Register as an employer (Form 1) before the first deduction above ₹12,000
• Enrol each branch (Form 3) within 60 days
• Deduct ₹200 a month; leave out bonus and gratuity when testing the threshold
• Deposit with Form 5 — monthly if 20+ staff, quarterly otherwise
• Pay the annual tax by 30 September, at your authority's rate
• Keep age and disability certificates for anyone treated as exempt

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Common mistakes

Paying the State when the corporation is the authority. A Surat business that pays on the State portal hasn't paid SMC. Check which authority covers your premises before paying, and ask for a transfer or refund in writing if you paid the wrong one.

Using old slabs. Deducting ₹80 or ₹150 from staff on ₹7,000–₹11,999 is a leftover from before April 2022. Stop, and refund the amounts deducted.

Forgetting branches. A company that enrols only its head office will get a demand for every other branch, with interest.

Assuming ₹2,500 everywhere. That is the constitutional ceiling and the Schedule I maximum, not what most Gujarat authorities actually charge. Pay what your authority's rate list shows.

Staff in more than one state

Professional tax follows the place of work. A Gujarat company with staff in Mumbai registers under Maharashtra PT, with its ₹300 February deduction; staff in Bengaluru pay Karnataka's ₹200 a month from a ₹25,000 salary; staff in Bhubaneswar pay nothing, because Odisha abolished the tax from 1 April 2026. Employees can deduct the professional tax paid from salary income only under the old income-tax regime; businesses can claim their own enrolment tax as an expense.

Official links

• Gujarat — Rate of Profession Tax (State as designated authority)
• Gujarat Commercial Tax portalRegistration, enrolment and payment where the State collects
• Amdavad Municipal Corporation — Professional TaxRates, zone offices, payment
• AMC Professional Tax FAQ (PDF)
• Surat Municipal Corporation — Profession Tax FAQs

What to do next

Confirm your designated authority, make sure each branch is enrolled, and diarise 30 September for the annual payment. For employees in other states, our professional tax due dates table and the state-wise professional tax guide put every rule side by side. Setting pay in Gujarat? Check the Gujarat minimum wages first, and see the GST registration guide if you are about to register — GST registration also changes your professional tax entry.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the professional tax slab in Gujarat?

Since 1 April 2022, salaried employees in Gujarat pay nothing if their monthly salary is up to ₹12,000, and ₹200 a month above that. There is no higher February deduction, so the annual total is ₹2,400. The employer deducts the tax and pays it to the designated authority — the municipal corporation in cities such as Ahmedabad and Surat.

Who collects professional tax in Ahmedabad and Surat?

In Gujarat, the municipal corporations are the designated authorities for professional tax within their limits — Amdavad Municipal Corporation and Surat Municipal Corporation collect from employers and enrolled persons in their cities. Municipalities and district panchayats collect in their areas, and the State Commercial Tax Department collects everywhere else through its online portal.

How much professional tax does a company or firm pay in Gujarat?

It depends on the designated authority. Where the State Government collects, companies, firms, factories and professionals pay ₹1,000 a year. Amdavad Municipal Corporation lists ₹2,000 a year for professionals, companies, partnership firms and factory owners. Every branch is a separate person and pays separately. The legal maximum is ₹2,500 a year.

What is the due date for professional tax in Gujarat?

Employers with 20 or more employees pay within 15 days after each month ends; smaller employers pay quarterly within 15 days of the quarter's end, with a Form 5 declaration. Enrolled persons — companies, firms and professionals — pay their annual tax by 30 September if enrolled before 31 August, otherwise within one month of enrolment.

What is the penalty for late professional tax payment in Gujarat?

Interest of 12% a year (1% a month) applies to late payment. Surat Municipal Corporation also adds a phased penalty for enrolled persons who miss 30 September: 5% from 1 November, 10% from 1 January, 15% from 1 April and 20% from 1 July. Ahmedabad charges ₹10 a day for late enrolment, and authorities can attach bank accounts or prosecute.

Who is exempt from professional tax in Gujarat?

Employees earning up to ₹12,000 a month pay nothing. Surat Municipal Corporation's FAQ lists exemptions for persons aged over 65, persons with 40% or more disability certified by a civil surgeon, and traders whose annual turnover is under ₹2.5 lakh. GST-registered suppliers with turnover in the state up to ₹5 lakh pay nil at the State Government's minimum rates.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Rate of Profession Tax under the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976, where State Government is Designated Authority (updated 27/06/2024) — Commercial Tax Department, Government of Gujarat · accessed 9 October 2026
2. 2.Gujarat Act No. 10 of 2021 — amendment inserting entry 7A in Schedule I (Gujarat Government Gazette, 9 April 2021) — Legislative and Parliamentary Affairs Department, Government of Gujarat (copy hosted by Surat Municipal Corporation) · accessed 9 October 2026
3. 3.Professional Tax department page — rates for individuals/firms and salaried employees — Amdavad Municipal Corporation · accessed 9 October 2026
4. 4.Professional Tax FAQ for enrolment certificate holders (Form 3) — Amdavad Municipal Corporation · accessed 9 October 2026
5. 5.Profession Tax Recovery Cell — FAQs — Surat Municipal Corporation · accessed 9 October 2026
6. 6.The Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 (with amending Acts to 2021) — Government of Gujarat (compilation via PRS Legislative Research) · accessed 9 October 2026
7. 7.Amendments to the Gujarat Profession Tax Rules introduce an online portal for registration, returns and payments — Lexplosion · accessed 9 October 2026