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Professional tax is such type of tax, which is collectected by the state governments in India. Professional tax pay to state government if someone earning is from professional area such as doctor, lawyer, charted accounted, company secretary, etc. Different states have different rates and methods of collection. Professional taxes in India are collected or charges at the state level. However, not all states impose this tax. Applicability of Professional Tax as per the Constitution of India: Article 276 of the Constitution of India provides that “there will 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 columns of the Schedule will be liable to pay to the State Government tax at the rate mentioned against the class of such person in the third column of said Schedule. Provided that entry 23 in the Schedule will apply only to such classes of person as may be specified by the State Government by notification from time to time.

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