Equal Applicability as Private Sector Employees

• Government employees, both central and state, are equally liable to pay professional tax under the respective state’s PT Act.
  
• There is no exemption solely based on government employment status.
  
• PT is applicable to employees in ministries, public sector undertakings (PSUs), local bodies, municipal corporations, and autonomous institutions.
  
• The same income-based slab rates and thresholds apply as for private sector employees.
  
• Deductions are handled by the respective government department’s payroll section.
  

State-Specific Threshold and Rates Apply

• The liability depends on the gross monthly salary and the state-specific income slabs.
  
• Government employees earning below the minimum threshold are exempt from deduction.
  
• For example, if the state slab begins at ₹15,000 per month, those earning less are not charged PT.
  
• Higher-income employees may have to pay up to the maximum of ₹2,500 annually, as per constitutional limits.
  

Responsibility of Drawing and Disbursing Officer (DDO)

• The DDO or treasury officer is responsible for deducting PT at source from the salary of each government employee.
  
• The deducted amount is remitted to the state commercial tax or municipal authority through approved channels.
  
• The DDO also files monthly or quarterly PT returns and maintains deduction records.
  
• In many states, DDOs operate under a separate PTRC registration number.
  

Exemptions Based on Income and Special Status

• Government employees who are senior citizens (age 60 and above) or persons with disabilities may be exempt from PT, subject to state policy.
  
• Employees on unpaid leave or suspension may also be exempt during that period.
  
• Uniformed personnel in some states (e.g., police constables, paramilitary forces) may receive specific exemptions.
  
• Each exemption must be supported with valid documents and recorded in payroll.
  

Deduction and Recordkeeping Compliance

• The PT deduction must be reflected in the employee’s payslip under deductions.
  
• Government departments are required to maintain salary sheets, exemption registers, and challan records.
  
• These records are crucial during audits or inspections by the professional tax authority.
  
• Non-compliance or errors in deduction may result in penalties against the department or the disbursing officer.