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Chhattisgarh's approach differs from states like Odisha, which repealed its PT Act entirely in April 2026.
| Parameter | Chhattisgarh | Odisha |
|---|---|---|
| Method | Exemption notification under Section 6 | Full repeal via Ordinance 02 of 2026 |
| Act status | Still on the statute books | Repealed and removed |
| Can PT return? | Yes, by withdrawing the notification | No, would require new legislation |
| Registration framework | Exists but dormant | Dissolved |
| Historical obligations | None outstanding (exempt since 2011) | Savings clause for pre-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 Rule 3(1) (Form 1) 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 Slab Rates: Employee Salary (Currently Dormant)
The Schedule to the Chhattisgarh Professional Tax Act, 1995 prescribes salary-based slabs for employees. These slabs are not currently enforced due to the blanket exemption but remain part of the Act.
Tax Rate Chart
Statutory PT Slabs: Salaried Employees in Chhattisgarh (Dormant Since 2011)
Annual rates from the Act Schedule. Not currently enforced due to exemption notification.
Annual income up to Rs 40,000
No Professional Tax
Rs 40,001 to Rs 1,00,000
Multiple sub-slabs (Rs 30 to Rs 100/month)
Rs 1,00,001 to Rs 1,50,000
Rs 150/month
Rs 1,50,001 to Rs 3,00,000
Rs 180 to Rs 200/month
Above Rs 3,00,000
Constitutional cap (Article 276(2))
Key points about the statutory structure:
- The exemption threshold is Rs 40,000 per year, one of the lowest in India (compared to Jharkhand's Rs 3,00,000 or Maharashtra's Rs 90,000)
- The maximum annual PT is Rs 2,500, matching the constitutional ceiling under Article 276(2)
- For the highest slab, the typical collection method is Rs 200 per month for 11 months and Rs 300 in the final month, totalling Rs 2,500
- The Act uses annual income for slab determination, similar to Jharkhand
- These slabs have been dormant since April 2011 and would only activate if the exemption notification is withdrawn
The Schedule also includes sub-slabs between Rs 40,001 and Rs 1,00,000 (with breakpoints at Rs 50,000, Rs 60,000, and Rs 80,000) and between Rs 1,50,001 and Rs 3,00,000 (with a breakpoint at Rs 2,50,000). The exact per-month amounts for intermediate slabs are specified in the Act Schedule maintained by the Commercial Tax Department at comtax.cg.nic.in.
Statutory Slab Rates: Dealers and Self-Employed (Currently Dormant)
The Schedule also prescribes rates for dealers registered under the Chhattisgarh Vanijyik Kar Adhiniyam based on gross annual turnover.
Tax Rate Chart
Statutory PT Rates: Dealers by Gross Turnover in Chhattisgarh (Dormant Since 2011)
Annual rates from the Act Schedule. Not currently enforced due to exemption notification.
Turnover below Rs 5,00,000
No Professional Tax
Rs 5,00,000 to Rs 10,00,000
Rs 100/month
Rs 10,00,001 to Rs 25,00,000
Rs 167/month (approx.)
Rs 25,00,001 to Rs 50,00,000
Rs 188/month (approx.)
Above Rs 50,00,000
Constitutional cap
Self-Employed Professional Categories
The Schedule also specifies rates for self-employed professionals by profession type:
| Category | Annual Rate (Dormant) |
|---|---|
| Legal practitioners | Rs 600 to Rs 2,500 (based on years of practice) |
| Medical practitioners | Rs 600 to Rs 2,500 (based on qualification) |
| Chartered Accountants, Company Secretaries, Cost Accountants | Rs 2,500 |
| Architects, Engineers, Consultants | Rs 1,200 to Rs 2,500 |
| Insurance agents | Rs 600 to Rs 1,200 |
| Commission agents, brokers, auctioneers | Rs 600 to Rs 2,500 |
| Contractors (Class I) | Rs 2,500 |
| Persons with GST/VAT registration above Rs 40 lakh | Rs 2,500 |
All these rates are currently dormant due to the blanket exemption.
Historical Penalty Structure (Currently Dormant)
The Act prescribes penalties for non-compliance that would activate if the exemption is revoked:
Tax Rate Chart
Penalties Under the Chhattisgarh PT Act (Dormant Since 2011)
These penalties are not currently enforceable due to the exemption notification.
Late payment interest
On outstanding tax amount
Maximum interest cap
Interest cannot exceed this limit
Penalty calculation (if PT is reactivated):
- Interest accrues at 2% per month on the unpaid tax amount from the due date
- The total interest is capped at two-thirds (66.67%) of the total tax due
- For an annual PT of Rs 2,500, the maximum interest would be Rs 1,667
Registration Framework (Currently Dormant)
The registration process under the Act exists on the statute books but is not operational:
Employer Registration (PTRC): Form 1 Under Rule 3(1)
- Submit Form 1 to the Commercial Tax Department within 30 days of employing persons
- Portal: comtax.cg.nic.in (State Sales Tax Department of Chhattisgarh)
- Documents: PAN, certificate of incorporation, employee list, address proof
Self-Employed Registration (PTEC): Form 2
- Self-employed professionals and sole proprietors submit Form 2
- Due within 30 days of commencing trade, profession, or calling
Payment Deadlines (If Reactivated)
| Category | Due Date |
|---|---|
| Employer deposits | Within 10 days before month end |
| Self-employed (registered before August 31) | By September 30 of that year |
| Self-employed (registered after August 31) | Within 30 days of enrollment |
Historical Exemptions Under the Act
Before the blanket exemption, the Act provided specific exemptions for:
- Females earning a salary up to Rs 10,000 per month
- Members of the Armed Forces
- Persons with disabilities
Income Tax Deduction Impact
Since PT is not payable in Chhattisgarh, no Section 16(iii) deduction from salary income is available for employees working in the state. 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.
| Parameter | Chhattisgarh | Madhya Pradesh | Jharkhand |
|---|---|---|---|
| Act | Vritti Kar Adhiniyam, 1995 | Vritti Kar Adhiniyam, 1995 | PT Act, 2011 |
| Status | Exempted (since 2011) | Active | Active |
| Exemption threshold | N/A (all exempt) | Rs 2,25,000/year | Rs 3,00,000/year |
| Max annual PT | N/A (all exempt) | Rs 2,500 | Rs 2,500 |
| Collection frequency | N/A | Monthly | Quarterly |
| Employer deposit deadline | N/A | 10th of following month | 15 days after quarter |
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:
- Register for PTRC within 30 days of the notification date via the Commercial Tax Department portal
- Configure payroll systems for Chhattisgarh PT deduction based on the applicable slab rates from the Schedule
- Begin monthly deductions from employee salaries based on annual income slabs
- Deposit PT within 10 days before month end to the state treasury
- 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.
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.
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