Professional Tax: State Rules and Registration

Professional Tax is a state-level tax on professionals, traders, and employees. States like Karnataka, Maharashtra, Tamil Nadu, West Bengal, and Andhra Pradesh levy it; many others have abolished it. Employers deduct professional tax from salaries based on the state slab (commonly Rs 200 per month). Registration is mandatory for any business with employees in a professional-tax state. File returns monthly or annually depending on the state. Late payment attracts interest and penalties.