Professional tax is a direct tax which is levied and collected by the state governments commercial tax departments or in some states by particular municipal corproarations are authorised for collecting this tax from all individuals who earn a money through any specified medium of earning.
Any person who is involved in the work of profession like company secretary, chartered accountant,lawyer,professor,doctor, etc are liable to pay this tax to the government in monthly basis.
Every state have their own rates of paying this tax in their state .
It is big source of revenue income for the state government.
The person who is paying this tax as a tax payer is eligible for Income tax deduction for this payment.
In some private companies this tax is also payable by staff members so it is deducted from their salaries by their employer and remitted to the state exchequer and in some notified states to the municipal corporation.
Professional tax is basically levied on the income earned by the employees on providing their services.