According to Article 246 of the Indian Constitution, the Parliament has exclusive powers to legislate on income tax matters. However, Article 276 empowers state governments to impose professional tax through their specific legislation, thus making PT a state-level tax. Each state has its regulations, so businesses and individuals must understand the rules applicable in their region.

Professional Tax is applicable in several states, including but not limited to:

Since PT is regulated at the state level, it is vital to consult official state resources or professional tax consultants to understand the specific requirements.

Professional Tax Registration is categorized into two main types:

Professional Tax applies to various individuals and entities, including:

The Commercial Tax Department of each state governs and administers the collection of Professional Tax. Employers are responsible for collecting PT from their employees and remitting it to the state, while self-employed individuals must pay the tax directly.

Failure to register for PT can result in penalties, late fees, and interest on overdue payments. Penalty amounts vary by state, so it’s crucial to comply with the local rules to avoid financial repercussions.