Question
Is professional tax deductible from income tax?
Answer
Bottom line: Yes — professional tax you actually pay is deductible from salary under Section 16(iii), but only if you choose the old regime.
1. The deduction
Professional tax paid during the year (up to the ₹2,500 statutory cap) is reduced from your gross salary before tax.
2. Regime catch
Under the default new regime, the Section 16(iii) deduction is not allowed — only the standard deduction survives. You get the PT benefit only under the old regime.
3. In Form 16
Employers usually reflect the PT deducted in your Form 16.
Estimate your PT with our Professional Tax Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.