<P> Profession tax the tax by the state governments in India . A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax . Different states have different rates and methods of collection . In India, profession tax is imposed evel . However, not all states impose this tax . The states which impose professional tax are Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim . Business owners, working individuals, merchants and people carrying out various occupations come under the purview of this tax . </P> <P> Profession tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty . It is a source of revenue for the government . The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs . It is also payable by members of staff employed in private companies . It is deduced by the employer every month and sent to the Municipal Corporation . It is mandatory to pay professional tax . The tax payer is eligible for income tax deduction for this payment . </P> <P> Applicability of Profession Tax as per the Constitution of India: Article 276 of the Constitution of India provides that "there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act . Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule . Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time ." </P>

Meaning of salary for calculation of professional tax