{"id":3201,"date":"2026-04-11T14:25:54","date_gmt":"2026-04-11T08:55:54","guid":{"rendered":"https:\/\/www.sgcms.com\/regulatory-updates\/?p=3201"},"modified":"2026-04-11T14:27:07","modified_gmt":"2026-04-11T08:57:07","slug":"odisha-abolishes-professional-tax-what-employers-and-employees-need-to-know","status":"publish","type":"post","link":"https:\/\/www.sgcms.com\/regulatory-updates\/odisha-abolishes-professional-tax-what-employers-and-employees-need-to-know\/","title":{"rendered":"Odisha Abolishes Professional Tax: What Employers and Employees Need to Know"},"content":{"rendered":"

Effective 1 April 2026 | Detailed Notification Awaited<\/strong><\/em><\/p>\n

In a significant move announced during the State Budget for FY 2026-27, the Government of Odisha has abolished Professional Tax (PT) with effect from 1st April 2026. Chief Minister Mohan Charan Majhi, who also holds the Finance portfolio, cited the longstanding concern that PT constitutes double taxation for individuals already subject to Income Tax \u2014 a point raised during pre-budget consultations.<\/p>\n

The abolition comes at a fiscal cost of approximately \u20b9320 crore per annum to the state exchequer, reflecting the government’s intent to ease the compliance burden on salaried employees, professionals, and businesses operating in the state.<\/p>\n

Regulatory Context<\/strong><\/p>\n

Professional Tax in Odisha was governed by the Orissa State Tax on Professions, Trades, Callings and Employments Act, 2000<\/em>. It applied to salaried individuals in both government and private sector, self-employed professionals (doctors, engineers, lawyers, CAs, company secretaries), as well as businesses, companies, LLPs, and GST-registered entities. The maximum annual levy stood at \u20b92,500.<\/p>\n

Immediate Compliance Implications<\/strong><\/p>\n

Employers and payroll teams should note the following:<\/p>\n