Professional Tax is a tax levied on professionals and trades in India. It is a state-level tax and has to be compulsorily paid by every member of staff employed in private companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.
This tax is levied by the state government on all individuals. It is levied on all persons who earn their living through any medium. Generally, people think that professional has been paid by professionals like doctors, advocate but this is different. And a tax that to be paid by every single earning individual. The method of calculation and amount of tax payable varies from state to state but legislation has put a limit of 2,500 Rs. per year for the same.
