Professional tax is a tax levied and collected by the state governments.
Every employee in a private limited company is liable to pay professional tax.
However, it is the duty of the employer to deduct the tax from the salary of the employee every month and submit it to the government.
Professional tax is calculated on a slab basis on the gross income of the employee.
Why obtain Professional Tax Registration?
Required as per statue of some states
May result in penalties and fines, if not collected/remitted
Tax can be deducted from income from salaries of the taxpayer for professional tax paid