PT is a state subject. That single fact explains why a payroll team running a distributed company in Bengaluru, Mumbai and Hyderabad files three different returns to three different portals on three different schedules — and pays slightly different amounts for the same gross salary depending on where the employee sits.
Which states actually levy PT
PT applies in roughly half of India. The full set of states and union territories that levy PT on salaried employees includes Karnataka, Maharashtra, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Gujarat, Madhya Pradesh, Kerala, Odisha, Bihar, Jharkhand, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Tripura, Sikkim and Puducherry. Delhi, Haryana, Uttar Pradesh, Rajasthan and Punjab do not levy PT — payroll in those states deducts nothing under this head.
The common structure
Almost every PT regime works the same way. There are two registrations: an employer registration that the company holds once per state where it has employees, and a per-employee enrolment that the employer files for each employee. The employer deducts PT from each employee's salary, adds the employer's own contribution where applicable, and remits the combined amount to the state government either monthly, quarterly or half-yearly depending on the state.
Slabs are progressive — employees below a state-specific threshold pay nothing, employees in the middle band pay a small per-month amount, and employees above the top band pay a flat maximum per month. The constitutional cap on PT is ₹2,500 per year per person — no state can charge more than this in total.
State-by-state snapshot
The table below summarises the practical operating rules. Exact slabs and amounts change occasionally with state budgets, so always verify against the current state notification before configuring a new payroll.
| State | Registration | Filing frequency | Notes |
|---|---|---|---|
| Karnataka | Employer + per-employee enrolment | Monthly | Single flat slab above the threshold. Strict on monthly late filing. |
| Maharashtra | Employer + enrolment certificate | Monthly | Multiple slabs. Annual return in addition to monthly. |
| West Bengal | Employer + enrolment | Monthly | Multiple slabs. e-payment only. |
| Tamil Nadu | Half-yearly via municipal body | Half-yearly | Administered by local bodies — registration depends on city. |
| Telangana | Employer registration | Monthly | Slabs mirror Andhra; rapid penalty cycle for non-filers. |
| Andhra Pradesh | Employer registration | Monthly | Slabs similar to Telangana. |
| Gujarat | Employer registration | Monthly | Slabs differ at higher bands compared to Maharashtra. |
| Kerala | Half-yearly with local body | Half-yearly | Filed with the panchayat or municipality where the employer is located. |
| Madhya Pradesh | Employer + enrolment | Monthly | Slabs include a separate top band; capped at the constitutional ceiling. |
| Odisha | Employer registration | Monthly | Online portal — late filing attracts interest plus penalty. |
| Assam | Employer registration | Monthly | Slabs and procedural rules largely state-specific. |
| Bihar | Employer registration | Annual | Annual filing; simple structure. |
| Jharkhand | Employer registration | Half-yearly | Simple structure but enforcement uneven by district. |
| Sikkim | Employer registration | Quarterly | Small state, small slabs, predictable enforcement. |
Multi-state PT — your consultant handles it
If your team sits in three cities, FastLegal files three PT returns. Your dedicated consultant maintains the master state-registration list, files the monthly or half-yearly returns on schedule, and reconciles the deductions on every payslip against what was remitted. Late-filing notices stop arriving in your inbox.
Mistakes that show up in audits
- Deducting PT in the employee's state of payroll, not the employee's state of work. A Bengaluru-based employee working remotely from Hyderabad on the books of a Karnataka-registered employer is still typically a Karnataka PT case, but state-of-work rules vary — verify before assuming.
- Forgetting per-employee enrolment in states that require it. Employer registration alone is not enough.
- Not filing a nil return in months where no employee crossed the threshold. Most states require a return regardless of whether PT was due.
- Letting a registration lapse after closing an office. PT obligations continue until the registration is formally cancelled.
Frequently asked questions
Do remote employees pay PT in the state they work from or the state of the employer?+
Typically it follows the establishment from which the employee is paid — your registered office or the branch under which the employee sits on the books. Some states are beginning to look at the actual state of work; if you have a fully remote team across multiple states, plan to register PT in each state where you have a meaningful headcount.
Is PT deductible from salary under the new tax regime?+
Yes, PT paid by the employee continues to be deductible under section 16(iii) in both the old and the new tax regime when computing taxable salary. It is one of the few deductions the new regime allows.
What is the maximum PT a company can deduct?+
The constitutional limit is ₹2,500 per year per employee. No state PT regime can exceed this annual cap. The monthly slab in each state is calibrated so the annual total stays within this limit.
Does FastLegal file PT for me?+
Yes — across every state where you have employees, on the schedule the state requires, with reconciliation against your payroll register. Your dedicated consultant owns the PT calendar so you do not have to maintain one.
Stop reading circulars. Start running clean payroll.
Every FastLegal plan ships with a dedicated payroll consultant — a real human who runs your PF, ESI, PT, TDS and Form 16 issuance, configured to your salary structure, your state, and your hiring plan. You sign off. We do the rest.