The nomenclature ‘Professional tax’ sometimes fails to deliver its actual meaning. It is a tax that is levied on all kinds of professions, trades, and employment. The tax is applicable based on the income of such a profession, trade, and employment.
In fact, business persons, freelancers, etc are liable to pay tax once their income increases the monetary threshold. Unlike income tax which is imposed by the central government, professional tax is imposed by the state government. Though, states like Delhi, Haryana, and UP are exempted from professional tax.