Professional Tax is a tax that is levied at the state level in our country. People who are in a profession of a Chartered Accountant, Cost Accountant, Lawyer, Company Secretary, Doctor or are a Business person/Merchant and earn through such professions are required to pay professional tax in some states of the country.

Out of the 29 states and 7 union territories, some of the states which recently imposed 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 a for mentioned, business persons, individual workers, and merchants come in this tax’s ambit slab.

Professional tax is imposed by the Municipal Corporation 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 a salary in general.