Professional Tax is a state-imposed tax levied on individuals earning an income through employment, profession, or trade. It is applicable to both salaried employees and self-employed professionals.

There are two types of registration: Professional Tax Registration (PTR): For employers who must deduct and pay tax on behalf of employees. Professional Tax Enrollment (PTE): For self-employed individuals (e.g., freelancers, consultants, lawyers, etc.).

No. Professional Tax is applicable only in certain states like Maharashtra, Karnataka, West Bengal, Gujarat, Tamil Nadu, etc. Each state has its own slab rates and rules.

An employer must apply for registration within 30 days of employing staff. Self-employed individuals must also register within a prescribed time as per state rule

Failure to register or pay Professional Tax can lead to penalties, interest, and legal action under the respective state laws.

Professional Tax is based on monthly salary slabs or annual income, depending on the state. For example, in Maharashtra, employees earning above ₹7,500/month may pay up to ₹2,500/year.