A tax levied by State Government (mostly governed by Municipal council of the State Government) for professional or employment is Professional Tax.
States which impose Professional tax are:
Each state has a separate Act and authority for collection of such a tax.
Any employer having work force and even the employers having no workforce is liable for registration under the Professional tax Act within 30 days from the date of liability to pay tax.
Employers have to pay the tax on behalf of his employees for which the employer deducts the eligible amount form employee’s salary and deposits it with the Municipal Corporation and hence he has to apply for a Certificate of Registration.
For employers who do not have any work force and Self-employed taxpayers have to obtain an Enrolment Certificate.
It is compulsory just like income tax. Income tax deduction is available for the professional tax deducted.