Each professional, the Directors of Company, Designated Partners of the LLP or any other employer (which may Company or LLP) is under obligation to seek registration as mentioned above and to ensure that professional tax is deducted from the salary of employees. Professional tax is usually a slab-amount based on the gross income of the professional. Every employer is under an obligation to deduct and pay tax on behalf of employees, for this purpose the employer should obtain the registration certificate from the departmental of professional tax within 30 days from the date of his liability.
Professional tax is a state level tax which is imposed on income earned by way of profession, trade, calling or employment. The tax is based on slabs depending upon income of individual who may be self employed or working as employee of an entity. At present the maximum tax that can be imposed is restricted to is Rs. 2500/-.
Professional tax is imposed only in following States: Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.
In case of individuals who are self employed the tax has to be paid by the individual himself. In case of employed individuals, the liability is on the employer.