Professional Tax


Professional Tax is a direct tax which is levied on persons earning an income by way of either practicing a profession, employment, calling or trade. Unlike income tax which is levied by the Central Government, professional tax is levied by the government of a state or union territory in India. Majority but not all of the Indian states impose professional tax.

As this tax is a state subject, the rate of professional tax varies from one state to another. While some states might charge it as a percentage value, other states tend to charge it as a fixed amount based on income slabs.