WHAT IS PROFESSION TAX

1 st of all what we have to know is who is eligible for profession tax?

Any person engaged in any profession or tread is required to pay profession tax.

Means, every doctor, advocate or any professional person or any person or partnership firm engage in any business, or any salaried person eligible to pay profession tax.

Profession tax the tax by the state governments in India. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor, etc. are required to pay this professional tax. Different states have different rates and methods of collection. In India, professional tax is imposed every month. However, not all states impose this tax. The states which impose professional tax are Punjab, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh,Jharkhand and Sikkim. Business owners, working individuals, merchants, and people carrying out various occupations come under the purview of this tax.

Applicability of Profession Tax as per the Constitution of India: Article 276 of the Constitution of India provides that “there shall 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 clauses mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time.”^{[dubious – discuss]}

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