InvestorQ : What is professional tax?
Priyanka Singh made post

What is professional tax?

Riya Dwivedi answered.
3 years ago

Professional tax is one of the major deductions one can see in his/her payslip. It is a tax that is levied on all kinds of professions, employments and traded and it is varies from profession to profession.

Professional tax is a deductible amount under Income Tax Act, 1961 and can be deducted from taxable income.

Professional tax is a type of tax that needs to be paid by each and every individual earning an income. The calculation of this tax and the professional tax levied differs from one state to another. However, the limit has been set to Rs. 2500 per year.