Assam Professional Tax Slabs for Salaried Employees revised from 1st April 2025

In a welcome move for low- & middle-class employees who’s earning up to 15000 per month, Assam Govt. has revised the Assam Professional Tax slabs applicable to salaried class individuals, effective from 1st April, 2025. It means salary up to 15000 per month are exempt from Assam Professional Tax.

What Is Professional Tax?

Professional Tax (PT) is levied by the state government on income earned by way of profession, trade, or employment. Employers are responsible for deducting PT from salaries and remitting it to the government on a monthly basis. Employees earning up to ₹15,000 per month are now completely exempt from paying professional tax.

New Professional Tax Slabs in Assam – From April 2025

Key Highlight: Employees earning up to ₹15,000 per month are now completely exempt from paying professional tax.

Old vs. New Slabs – What’s Changed?

Old up to 31^st March, 2025:

• ₹10,001–15,000: ₹150 per month
• ₹15,001–25,000: ₹180 per month
• Above ₹25,000: ₹208 per month

On or After 1^st April, 2025:

• ₹0–15,000: Exempt from PT
• ₹15,001–25,000: ₹180 per month
• Above ₹25,000: ₹208 per month

This means a tax saving of ₹1,800 per year for those in the ₹10,001–₹15,000 salary bracket for the employees who earned salary with in this bracket.

What About Other Professionals?

Impact on Employers and Payroll Teams

HR and payroll administrators should ensure:
• PT deductions are updated in payroll software used by the company. (e.g., greytHR, Zoho Payroll)
• The April 2025 salary cycle reflects the new slabs
• Timely remittance by the 28th of every month to avoid penalties

Tip: Delayed payments may attract interest and penalties at ~2% per month on employer.

Why This Matters

This revision brings several key benefits:

1. Reduces the Financial Burden on Lower & Medium Income Employees
   By exempting individuals earning up to ₹15,000 monthly from professional tax, the revised slabs directly benefit lower-wage earners (employees).
2. Encourages Formal Employment & Payroll Transparency
   The exemption serves as an incentive for informal sector workers and small businesses to transition into the formal economy. Employers are more likely to register low-income staff under formal payroll systems when the tax liability is minimal or nil, thereby improving social security coverage and labour law compliance across the state.
3. Brings Assam in Line with Other Progressive States
   Similar exemptions for workers making less than specific amounts have been implemented by a number of Indian states. Assam positions itself as a pro-labour and reform-oriented state by following this national trend, which increases its appeal to both responsible employers and workers.

Final Thoughts

The Assam Professional Tax slab update by the Assam government is a pro-worker decision that will increase thousands of workers’ take-home pay. While employees can anticipate a modest but significant increase in their monthly income, employers are responsible for ensuring timely compliance with Assam Professional Tax.