Dear Lohith,
"Professional Tax" is the tax is a State Tax levied by the respective State Governments under article 276 of the constitution of India. At present there are 21 States collecting this tax. However, in the States of Kerala and TamilNadu, municipalities are empowered to levy and collect this tax from anyone earning any income like salary or by means of practicing any profession within the geographical jurisdiction of such municipalities based on their annual gross income. It is the responsibility of the employers to collect this tax from their employees and remit the amounts to the municipalities. This tax is collectible from both assessees and non-assessees under the Income Tax Act. The sum paid as P.T can be deducted from the Gross Income and is exempt from I.T.