Professional Tax in Odisha – Abolished from April 2026
Odisha has scrapped professional tax. No PT is deductible from salaries for any period on or after 1 April 2026. Here is what changed, what employers must still do, and the old slabs for arrears. Verified by a practising CA.
In the State Budget for FY 2026-27, the Odisha Government announced the abolition of professional tax, citing the long-standing criticism that PT amounts to double taxation for people already paying income tax. The repeal was given legal effect by the Repeal Ordinance notified on 21 April 2026, operating retrospectively from 1 April 2026. The move costs the exchequer roughly Rs 320 crore a year and benefits every salaried employee and professional who was paying up to Rs 2,500 annually. Odisha thus joins Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh and J&K in the list of states and UTs with no professional tax.
Employees: no PT line in your payslip from the April 2026 salary onward – roughly Rs 200 a month more in hand for those who were in the top slab. Employers: stop deducting PT from April 2026 payroll; clear all deducted dues for periods up to 31 March 2026 and file the final return (Form V for FY 2025-26) by its due date – the repeal is prospective and does not wipe out past liabilities or pending proceedings. Self-employed professionals and traders: no enrolment payment is due for FY 2026-27 onwards; arrears for earlier years remain recoverable.
For computing arrears or verifying past payslips, the slabs under the repealed Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 were based on annual income:
| Annual income / salary | PT (until 31 Mar 2026) |
|---|---|
| Up to Rs 1,60,000 | Nil |
| Rs 1,60,001 to Rs 3,00,000 | Rs 125 per month (Rs 1,500 a year) |
| Above Rs 3,00,000 | Rs 200 per month for 11 months + Rs 300 in the 12th month (Rs 2,500 a year) |