Professional tax is a tax on all kinds of professions, trades, and employments and levied based on the income of such profession, trade and employment

By on 24-11-2018

PROFESSIONAL TAX

Professional tax is a tax on all kinds of professions, trades, and employments and levied based on the income of such profession, trade and employment. It is levied on employees, person carrying on business including freelancers, professionals etc subject to income exceeding the monetary threshold if any. Professional tax being levied by State Government is different in different states. Every state has its own laws and regulation to govern professional tax of that particular state.

This tax is to be paid to the respective corporation/ municipality in which the company is situated. The Profession Tax for the first half year (April – September) should be paid on or before August 31 and for the second half year (October – March) should be paid on or before February end.