PROFESSIONAL TAX

Professional Tax is a state-level tax imposed by various state governments in India. It is a tax levied on the income earned by professionals, traders, and individuals engaged in various occupations. The rates and regulations for professional tax vary from one state to another.

  1. Applicability:
    • Professional Tax is applicable to individuals and entities engaged in professions, trades, and employments. It is levied by state governments, and the rules may differ among states.
  2. Categories of Payees:
    • Professional Tax is typically categorized into different slabs or classes based on the income of the individuals or entities. Different rates may apply to different income levels.
  3. Employer’s Responsibility:
    • Employers are usually responsible for deducting professional tax from the salaries of their employees and remitting the collected tax to the state government. Self-employed individuals are required to pay the tax directly.