Profession tax is one type of tax which is collected by the municipality, corporation or panchayath from the professional working in an establishment. This tax covers every individuals who are involved in professions, trade and employment. It is mandatory for all the employers to collect tax from the employees based on the earnings. The tax collected is used for the welfare of the society at large. The collection of profession Tax depence upon the states. It is governed by the Professional Tax Act which is a state act. In some states it is collected every month and in some states it is collected on a half year basis.
Professional tax is deducted based on the earnings and different states follows different slabs. When there is no earnings, professional tax is not applicable.
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Srinivas Marnade