Professional tax is a tax on all kinds of professions, trades, and employment and levied
based on the income of such profession, trade and employment. Article 276, Clause 2 of the
Indian Constitution covers the provision concerning professional tax in the country. Professional
tax is imposed by state governments on the individuals who are employed in governmental,
private and non-governmental organizations. Professional tax being levied by the State
Government is different in different states. Every state has its own laws and regulations to
govern professional tax of that particular state. However, all the states do follow slab system
based on the income to levy professional tax. Employers, whose workforces earn a salary scaling
to INR 10,000 or above must remit professional taxes on behalf of the employees; the
contribution towards the same is stipulated to be Rs. 200 per month. Businesses holding an
enrollment certificate are required to remit their taxes at the stipulated rates before the 30 th of
April every year. Also, all employers must file an annual return within 60 days of the expiry of
the given year. The return must comprise of the salaries/wages remitted to the employees and the
tax deducted during the previous year. Professional tax rates are subject to revisions every
financial year.