Professional Tax Chhattisgarh: Exempted Since 2011, Statutory Slabs, Dealer Rates, and Multi-State Compliance Guide for 2026

Professional Tax is not applicable in Chhattisgarh. The State Government exempted every person from the Chhattisgarh Vritti Kar Adhiniyam, 1995 (Professional Tax Act, 1995) effective April 1, 2011 through Notification No. F-10/22/2011/CT/V(22).

No employer in Chhattisgarh is required to deduct, deposit, or file returns for Professional Tax. No self-employed professional or dealer is required to pay PT. This exemption remains in force as of September 2026.

This guide covers the exemption details, statutory slab rates that remain on the books, dealer rates, what happens if the exemption is revoked, and the impact on multi-state operations.

The Chhattisgarh PT Exemption: What Happened

The Chhattisgarh Vritti Kar Adhiniyam, 1995 (Act No. 16 of 1995) was enacted to levy tax on professions, trades, callings, and employments. The Act extends to the whole of Chhattisgarh and is administered by the Commissioner of Commercial Tax appointed under the Chhattisgarh Vanijyik Kar Adhiniyam (Commercial Tax Act).

Section 6 of the Act grants the State Government power to exempt any class of persons, or any employer or class of employers, from the operation of all or any provisions of the Act for a specified period.

Exercising this power, the Government of Chhattisgarh issued:

• Notification: No. F-10/22/2011/CT/V(22)
• Date: March 31, 2011
• Effective from: April 1, 2011
• Scope: Exempts every person from the provisions of the Act

Since April 1, 2011, Professional Tax is not levied on any person in Chhattisgarh.

Exemption vs Repeal: Why This Matters

Chhattisgarh's approach differs from states like Odisha, which repealed its PT Act entirely in April 2026.

The practical implication: Chhattisgarh's exemption is administratively reversible. The state government can revoke or modify the notification at any time, instantly reactivating PT obligations under the existing Act. Odisha would need to pass a new Act through the state legislature to reintroduce PT.

For employers with operations in both states, the compliance outcome is identical today: no PT deduction required. But the risk profile differs.

What Employers Must Know

If you employ staff in Chhattisgarh:

1. Do Not Deduct PT

No Professional Tax should appear on payslips for employees working in Chhattisgarh. If your payroll system has Chhattisgarh PT configured, disable it.

2. No Registration Required

You do not need to obtain a PTRC (Professional Tax Registration Certificate) for your Chhattisgarh operations. The registration framework under the Rules exists in the statute but is dormant.

3. No Returns or Deposits

No monthly PT deposit, no quarterly or annual returns, and no challan generation is required for Chhattisgarh.

4. Monitor for Revocation

Unlike a full repeal, the exemption can be withdrawn. If the state government issues a new notification revoking or modifying the 2011 exemption, employers would need to begin PT compliance immediately under the existing Act framework.

5. Work Location Rule Still Applies Conceptually

If Chhattisgarh reactivates PT, the work location principle would apply: PT follows the employee's work location, not the employer's registered address.

Statutory Rates Under the Act (Currently Dormant)

The Schedule to the Chhattisgarh Vritti Kar Adhiniyam, 1995 still prescribes rates for salaried employees, dealers and self-employed professionals. Because every person has been exempt since 1 April 2011, none of these rates is collected today. If the exemption is ever withdrawn, the rates, registration forms, due dates and interest provisions in the Act and the Chhattisgarh Professional Tax Rules would apply as notified at that time, subject to the constitutional ceiling of Rs 2,500 per person per year under Article 276(2). Check the current Schedule on the Commercial Tax Department website before configuring payroll, rather than relying on old slab tables circulating online.

Income Tax Deduction Impact

Since PT is not payable in Chhattisgarh, no Section 16(iii) deduction from salary income arises for employees working in the state (that deduction is in any case allowed only under the old tax regime). Similarly, no Section 37(1) business expenditure claim is available for self-employed professionals.

If Chhattisgarh revokes the exemption in the future, PT paid from that date onward would qualify for the respective income tax deductions. For more on salary tax deductions, see our guide on TDS on salary.

Chhattisgarh vs Madhya Pradesh vs Jharkhand

Chhattisgarh was carved from Madhya Pradesh in November 2000. The PT Act (originally the MP Vritti Kar Adhiniyam, 1995) was adopted by Chhattisgarh at state formation. While Madhya Pradesh continues to actively levy PT, Chhattisgarh exempted it in 2011.

For employers operating across central and eastern India, Chhattisgarh is a compliance-free zone for PT, while Madhya Pradesh and Jharkhand require active deduction and deposit compliance.

For managing PT across multiple states, see our comprehensive guide to multi-state Professional Tax compliance.

What If the Exemption Is Revoked?

If the Chhattisgarh government withdraws the exemption notification, employers would need to:

1. Register for PTRC within the time the Rules prescribe, via the Commercial Tax Department
2. Configure payroll systems for Chhattisgarh PT deduction based on the applicable slab rates from the Schedule
3. Begin monthly deductions from employee salaries based on annual income slabs
4. Deposit PT by the due dates prescribed in the Rules
5. File returns as prescribed under the Rules

The Act and its administrative machinery (forms, rules, portal) are already in place, so the transition would be faster than establishing a new PT regime from scratch.

Monitoring: Track notifications from the Chhattisgarh Commercial Tax Department at comtax.cg.nic.in and the Chhattisgarh Gazette for any amendments to the exemption notification.

Where Tax Garden Helps

Even though Professional Tax is currently not applicable in Chhattisgarh, multi-state employers must manage PT compliance across every state where they have employees. Tax Garden handles end-to-end Professional Tax compliance across all Indian states:

• Multi-state tracking: We monitor exemption status changes in states like Chhattisgarh and alert you immediately if PT obligations are reactivated
• Payroll integration: Correct PT deduction configured for each state based on current slab rates and exemption status
• Registration: PTRC and PTEC applications in all active PT states
• Monthly and quarterly deposits: Timely deposit within each state's prescribed deadlines
• Returns and reconciliation: Annual PT returns filed across all jurisdictions
• Penalty resolution: Handling notices and assessments from state commercial tax departments

For outsourced payroll management that includes PT compliance across all states, see our payroll outsourcing guide. For PF and ESI compliance, Tax Garden manages the complete employer contribution and filing cycle alongside PT.

Looking for expert help with professional tax Chhattisgarh, Chhattisgarh professional tax, professional tax Chhattisgarh 2026, Chhattisgarh PT exempt, professional tax not applicable Chhattisgarh, Chhattisgarh Vritti Kar Adhiniyam, professional tax Chhattisgarh slab rate, Chhattisgarh professional tax dealer rate? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.

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Sources: Chhattisgarh Vritti Kar Adhiniyam, 1995 (Act No. 16 of 1995), available at comtax.cg.nic.in; Chhattisgarh Professional Tax Rules, 1995 (comtax.cg.nic.in/acts_rules/vt_rules.pdf); Notification No. F-10/22/2011/CT/V(22) dated March 31, 2011, exercising Section 6 exemption power, confirmed via greythr.com, zoho.com, factohr.com, bizfoc.com, poisepayroll.com, SAP Knowledge Base Article 3125089, godigit.com, indiafilings.com; blanket exemption scope (all persons: salaried, self-employed, dealers) confirmed via greythr.com, SAP KB 3125089, factohr.com, zoho.com; dealer turnover slabs (Nil below Rs 5,00,000; Rs 1,200 for Rs 5,00,000-10,00,000; Rs 2,000 for Rs 10,00,001-25,00,000; Rs 2,250 for Rs 25,00,001-50,00,000; Rs 2,500 above Rs 50,00,000) confirmed via factohr.com, godigit.com, zoho.com, bizfoc.com, indiafilings.com; employee salary slabs (Nil up to Rs 40,000; maximum Rs 2,500 above Rs 3,00,000) confirmed via zoho.com, factohr.com, godigit.com, greythr.com, bizfoc.com, indiafilings.com, poisepayroll.com; penalty structure (2% per month, max two-thirds of tax due) confirmed via factohr.com, zoho.com, bizfoc.com; registration Form 1 under Rule 3(1) confirmed via comtax.cg.nic.in/forms/vtform.pdf; Constitution of India, Article 276(2) (Rs 2,500 per annum cap); Income Tax Act, 1961, Section 16(iii) and Section 37(1). All slab rates, exemption status, and compliance requirements are subject to amendment by state notification. Verify current status with the Chhattisgarh Commercial Tax Department before implementing any payroll changes. This article provides general information and is not a substitute for professional advice specific to your business circumstances.

Frequently Asked Questions

Is Professional Tax applicable in Chhattisgarh in 2026?

No. Professional Tax is not applicable in Chhattisgarh since April 1, 2011. The State Government issued Notification No. F-10/22/2011/CT/V(22) dated March 31, 2011, exercising its power under Section 6 of the Chhattisgarh Professional Tax Act, 1995 to exempt every person from the provisions of the Act. No employer is required to deduct or deposit PT for employees working in Chhattisgarh.

What is Notification F-10/22/2011/CT/V(22)?

This is the Government of Chhattisgarh notification dated March 31, 2011 that exempts every person from the Chhattisgarh Vritti Kar Adhiniyam, 1995 (Professional Tax Act, 1995) effective April 1, 2011. It was issued under Section 6 of the Act, which grants the state government power to exempt any class of persons from the operation of the Act. The notification covers salaried employees, self-employed professionals, and dealers.

Are self-employed professionals and dealers also exempt from PT in Chhattisgarh?

Yes. The exemption notification covers all persons under the Act, not just salaried employees. Self-employed professionals (doctors, lawyers, chartered accountants, engineers), business owners, and dealers with commercial tax registration are all exempt from Professional Tax in Chhattisgarh since April 1, 2011.

Can the Chhattisgarh PT exemption be revoked?

Yes. Unlike Odisha, which repealed its PT Act entirely in 2026, Chhattisgarh has only issued an exemption notification under Section 6 of the Act. The Act itself remains on the statute books. The State Government can withdraw or modify the exemption notification at any time, which would reactivate PT obligations. Multi-state employers should monitor Chhattisgarh government notifications for any changes.

What were the statutory salary slab rates under the Chhattisgarh PT Act?

The Schedule to the Act prescribes salary-based slabs, subject to the constitutional maximum of Rs 2,500 a year under Article 276(2). These slabs have been dormant since April 2011 due to the blanket exemption. They would become effective again only if the government revokes the exemption notification, so check the Schedule as notified at that time.

Do employers need PT registration in Chhattisgarh?

No. Since all persons are exempt from PT in Chhattisgarh, employers do not need to obtain a Professional Tax Registration Certificate (PTRC). No monthly deduction, deposit, or return filing is required. However, the registration framework under the Act and Rules (administered by the Commercial Tax Department) remains on the statute books and would activate if the exemption is withdrawn.

How does the Chhattisgarh PT exemption affect multi-state employers?

Multi-state employers with operations in Chhattisgarh do not need to deduct PT for employees working in Chhattisgarh. However, PT obligations continue in states where it is active, such as Maharashtra, Karnataka, Gujarat, West Bengal, Telangana, Tamil Nadu, Andhra Pradesh, Kerala, Madhya Pradesh, and Jharkhand. Each state has independent PT requirements regardless of the Chhattisgarh exemption.