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What is Professional Tax?

LiveRec EditorialUpdated

Professional tax is a tax some Indian states levy on people who earn from employment, a profession or a trade. The state sets the slabs, and the employer usually deducts it from salary. Article 276 of the Constitution limits it to Rs 2,500 a year per person. Not every state levies it.

Example

Two employees on the same salary in different states may see different professional tax lines, or none, on their payslips. Ask HR which state's schedule applies to you.

It is separate from income tax and TDS. See TDS and in-hand salary.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.