The state tax department has issued a fresh circular detailing the applicable interest rates on delayed Professional Tax (PT) payments, applicable to all registered employers and self-employed individuals. This move aims to bring uniformity in enforcement and raise awareness about the financial implications of late compliance. The standard interest rate has been reaffirmed at 1.25% per month on the outstanding tax amount, calculated from the due date until full payment is made.

According to the circular, the interest is levied automatically without the need for a separate notice and applies regardless of the reason for delay. Even partial payments will attract proportionate interest, and cumulative interest will continue to accrue until all dues are cleared. The department has clarified that no relaxation or waiver of interest is permissible under current regulations unless authorized through a separate notification.

The government has advised all PT assesses to review their payment records and ensure prompt clearance of outstanding amounts to avoid financial penalties. With the implementation of online tax administration systems, interest computations are now system-generated and reflected in the user’s account summary. Timely payments are essential not only for avoiding interest but also for maintaining compliance status required for renewals, licenses, and state approvals.