No Professional Tax Payable in Odisha from 1 April 2026

On 21 April 2026, the Government of Odisha notified the Odisha State Tax on Professions, Trades, Callings and Employment (Repeal) Ordinance, 2026, repealing the levy of Professional Tax in the State.

Key Highlights:

1. The Ordinance repeals the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 with retrospective effect from 1st April 2026.

2. From this date onwards, no Professional Tax shall be payable in the State of Odisha.

3. The Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 provided the statutory framework for the levy and collection of tax on professions, trades, callings, and employments in Odisha.

4. This levy, commonly referred to as ‘Professional Tax’, applied to individuals engaged in specified professions, trades, callings, or employments and required payment of a prescribed monthly or annual amount.

5. While the Ordinance repeals the Professional Tax Act, it clearly safeguards past actions and liabilities. The repeal does not affect:

   • Taxes already paid or payable before 1 April 2026.

   • Orders passed, returns submitted, assessments made, and notices issued under the repealed Act

   • Any rights, obligations, or liabilities acquired or accrued under the Act

   • Ongoing or future investigations, legal proceedings, or recovery actions relating to past dues

6. All such matters shall continue to be governed as if the Act had not been repealed.

7. With the removal of Professional Tax in Odisha:

   • Salaried employees will no longer see deductions towards Professional Tax from April 2026 onwards.

   • Employers will no longer be required to deduct or remit Professional Tax in future.

   • However, outstanding arrears relating to periods prior to 1 April 2026, shall continue to be recoverable by the authorities.

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[Odisha State Tax on Professions, Trades, Callings and Employment (Repeal) Ordinance, 2026, published on 21-4-2026]