Professional Tax is a unique form of tax levied on individuals earning their income from any form of professions like charted accountants, lawyers, doctors etc, trade, calling, or employment. Professional Tax, unlike other taxes in India, is independently governed and regulated by state governments through the enactment of special legislations. In most of the cases, the onus of collection of professional tax is on the employer.
The maximum amount of professional tax that can be collected in India is Rs. 2500. States within these prescribed limits, impose different charges on different individuals based on their occupation and earnings.