Profession Tax Overview
Profession Tax is just like Income tax but is collected by the State Government. But unlike its name suggests it is not just levied only on professionals. It is a tax on all kinds of professions, trades and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals etc. subject to income exceeding the monetary threshold if any. Profession tax is collected by the Commercial Tax Department. The commercial tax department of the respective states collects it which ultimately reaches the fund of Panchayath, Municipality or Corporation as the case may be.
