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The Profession Tax Act

Professional Tax is the tax charged by the state governments in India.

Every person engaged actively or otherwise in any profession, trade, callings or employment and falling under one or the other of the classes mentioned in the Profession Tax Act, is liable to pay Profession Tax.

The categories of persons liable for Profession Tax are any individual, a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association.


Every employer or person required to obtain a certificate of registration or enrolment shall within 30 days of his becoming liable to pay tax and apply for a certificate of registration or enrolment to the prescribed authority in the prescribed form.


The tax amount so collected from the employee's salary shall be deposited in the prescribed form within the last day of subsequent month for which contribution due.


Each state has prescribed penalties for non registration and default in payment of Profession tax and returns.