Professional Tax (PT) is a state-level tax imposed on individuals earning income through employment, professions, trades, or other occupations, where applicable. Employers may deduct Professional Tax from employees’ salaries and deposit it with the concerned state authority.

Key points:

• Applicable rules and rates vary from state to state.
• Eligible employers and professionals may need to obtain PT registration.
• Employers are generally responsible for deduction and timely payment where applicable.
• Proper PT compliance helps businesses avoid penalties and maintain statutory records.