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Answer Posted / thomas mathew
Profession tax is tax levied by state governments. This is
a tax payable on professions, trades, callings and
employmnets. Under this, every one (ie. employer,
employee and self employed) will have to pay tax. For the
employees it is the liability of the employer to deduct tax
according to salary salb fixed by state governments (which
varies from state to state) and pay to government. Self
employed has to pay profession tax directly to govt.
Companies (employer) is also to pay tax. (In West Bengal
the tax rate for comapny is Rs.2500/- per annum.)
In short every one who earns by way of business,
employments, consultation by doctors, chartered accontatns,
enginners etc. has to pay profession tax.
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