Professional Tax is a state-level tax in India imposed on individuals earning income through various professions, trades, callings, and employment. The tax is levied by state governments and is mandatory for both salaried and self-employed individuals. The rates and regulations may vary from state to state.

The primary purpose of Professional Tax is to generate revenue for state governments to fund various welfare and development activities. Employers must register for Professional Tax with the respective state’s tax department and ensure timely deduction and payment of the tax on behalf of their employees. Self-employed individuals must also register and pay the tax directly.