Professional Tax is not merely based on Basic salary because this is a tax on the earnings of any person who earns income, either in the form of salary or in any other form, say fees (doctors, lawyers etc), sales turnover (establishments). Therefore, if you are a salaried person you should pay profession tax on your total earnings. The only component that you can exclude is your reimbursements. If you get reimbursement of travel expenses met by you, that can be excluded. If you get reimbursement of rent paid by you, that can be excluded. But all other components of salary which are fixed should qualify for PT. If you have a component called HRA and is not based on any condition as to whether the employee resides in his own house or not, then that shall also be considered as part of Salary and PT paid for that component. Invariably, the PT shall be paid on earnings by way of Bonus and incentives also.