Professional Tax is a small tax charged by state governments on working people in India, deducted directly from the employee's monthly salary. Not every state charges Professional Tax, and the amount can vary from state to state, but by law it cannot exceed ₹2,500 per year for any employee. Employers are responsible for deducting the correct Professional Tax amount and depositing it with the state government. Late or incorrect Professional Tax deposits can lead to penalties for the company.
Definitions are general guidance. Your organisation's policies and applicable local requirements determine how a term is used in practice.
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