Professional Tax is a tax which is levied at the state level in our country. People who practice a profession of a Chartered Accountant, Cost Accountant, Lawyer, Company Secretary, Doctor or are a Businessperson/Merchant and earn through such professions are liable to pay professional tax in some states of the country.
Out of the 29 states and 7 union territories, some of the states which currently impose professional tax in India are Karnataka, Tamil Nadu, Bihar, Andhra Pradesh, Maharashtra, Assam, Kerala, Telangana, Gujarat, Meghalaya, Odisha, Madhya Pradesh, West Bengal, Tripura and Sikkim. As aforementioned, businesspersons, individual workers and merchants come under this tax’s ambit.
Professional tax is levied by the Municipal Corporation/ authority of any state and union territory. It is levied through predetermined tax slabs and is paid on monthly basis. It is payable by private company employees or may also be payable by people who earn salary in general.