The state government has issued a new notification granting full exemption from Professional Tax (PT) to Non-Resident Indians (NRIs). This exemption applies to NRIs engaged in employment or business activities outside India, regardless of their income level abroad. The exemption is applicable with immediate effect, aligning with broader efforts to streamline state-level tax obligations for overseas citizens.

As outlined in the notification, NRIs will not be required to register under the Professional Tax Act or file returns, provided they do not operate an active profession or business within the state’s jurisdiction. Authorities have clarified that this exemption is strictly for individuals holding valid non-resident status under the Foreign Exchange Management Act (FEMA). Any income earned or activity conducted within India will continue to be subject to professional tax, if applicable, under standard provisions.

Tax officials have advised employers and tax consultants to review employment records and update filings where NRI employees were previously included in PT returns. The department has also instructed its assessment officers to update internal systems to reflect the new exemption category and ensure no further demand notices are issued to qualifying NRIs. This policy change is expected to reduce compliance burdens and enhance the ease of doing business for Indian-origin professionals abroad.