The State Cabinet has formally approved a set of amendments to the Professional Tax Act, aiming to improve regulatory clarity, expand the tax base, and modernize administrative procedures. The amendments were passed during the latest cabinet meeting and will come into effect after official publication in the state gazette. Key revisions include the expansion of tax liability definitions, updated slab thresholds, and new procedural timelines for registration and return filings.

Under the revised framework, additional professional categories and income-generating activities will now be brought under the tax purview, including certain classes of digital freelancers and gig economy participants. The amendments also streamline exemption criteria, ensuring that benefits are extended only to qualified individuals such as persons with disabilities or those below the income threshold, as clearly defined in the updated statute. The law will also provide greater enforcement powers to tax officials, including provisional assessment and registration cancellation authority.

The cabinet has directed the Commercial Taxes Department to issue detailed implementation guidelines and ensure statewide awareness campaigns for taxpayers and employers. All existing registrants are required to review their compliance status in light of the new provisions, and new registrants must adhere to the updated eligibility and filing timelines. The amendments are seen as a critical step toward enhancing transparency, equity, and digital compliance in the state’s professional tax ecosystem.