Professional Tax – Tax levied by some state governments on salaried employees and professionals working in government or non-government entities.
Professional tax is a tax levied by some state governments of India on salaried employees and professionals including Chartered Accountants, lawyers and doctors working in government or non-government entities.
Professional Tax is usually a slab-amount based on the gross income of the professional and is deducted from his/her income monthly. The states that have levied professional tax are: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Tamil Nadu, Tripura and West Bengal. Since Professional Tax is imposed at the state level in India, different states have different rates and methods of tax collection.
If your company has employees in different states, you would need to get a Professional Tax registered in each state. The rates of the taxes vary in each state.
The frequency of filing returns also depends on the state your employees are in. However, most of the states are moving towards annual filings now.
It varies from state to state