Professional Tax is a tax levied on professions 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.

Professional Tax is a tax imposed by some of the state governments in India on persons earning income from salary or practising professionals such as Chartered Accountant, Company Secretary, Lawyer, Doctor etc. and from the company, LLP, Directors and Designated Partners.

Professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month. Some of the state governments that have levied professional tax are Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. In case of salaried employees and wage earners, Employer is liable to deduct professional tax with the State Government.

Professional Tax is the tax levied and collected by the different State It is an indirect tax. Governments of India on salaried people working in government or non-government organizations, or in the practice of any profession, such as Doctors, CAs, Lawyers, and many more, or carries out some kind of business, is required to pay this professional tax.

Professional tax is obligatory at the state level in India. Various states have various rates and techniques for assortment. The states which impose professional tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the businesses and the same is saved with the State Government.