Professional Tax

Professional Tax is a state tax levied on the income of the professional. It is also levied on trade, professions, freelancers and callings. The tax is levied based on income but is levied by state governments. The tax on income is a central subject, hence only states are empowered to make laws on profession, trade and callings. It is pertinent to note that, even though the professional tax is based on the income of the professionals but this is not an income tax. The tax is collected by the commercial tax department of various states and it ultimately reaches the municipal corporation funds