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.

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