- Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and has to be compulsorily paid by every member of staff employed in private companies. Professional tax is usually a slab-amount based on the gross income of the professional.
Profession Tax is applicable to a Proprietorship, Partnership Firm and Private Limited Company. In case of salaried employees, the employer has to deduct from the employee’s salary and deposit the same with the State Government. Even if there are no employees in a Private Limited Company, Profession Tax is applicable to the Directors. It takes around 7-10 business days to get a Profession Tax Registration.
