Professional Tax in Odisha: Abolished from April 2026

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 CA.

The Government of Odisha has abolished professional tax. The Odisha State Tax on Professions, Trades, Callings and Employments (Repeal) Ordinance, 2026 (Ordinance 02 of 2026), promulgated by the Governor under Article 213 and notified in the Odisha Gazette on 21 April 2026, repeals the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 with effect from 1 April 2026. The State’s power to levy, assess or collect professional tax under the 2000 Act ceases from that date, and the change covers both government and private-sector earners. The relief to taxpayers is estimated at about Rs 320 crore a year, and the stated reason is to remove the overlap with central income tax.

From 1 April 2026 no professional tax is deducted from salaries or payable by self-employed professionals, traders or businesses in Odisha. There is nothing further to pay, enrol for, or file under the 2000 Act for periods on or after that date.

• Stop deductions: do not deduct professional tax from salaries for any month from April 2026 onwards.
• Clear past dues: professional tax already deducted up to March 2026 must still be deposited, and any pending returns filed – the repeal carries a savings clause.
• Close out assessments: assessments, notices, demands and proceedings relating to periods up to 31 March 2026 remain valid and continue as if the Act had not been repealed.
• Update payroll: remove the Odisha PT component from payroll runs from April 2026 to avoid wrong deductions.

These rates applied until 31 March 2026 and are relevant only for clearing past dues. They do not apply to any period from 1 April 2026.