Profession tax is the tax levied and collected by the state governments in India. It is a direct tax. 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.
The rate of profession tax varies from one state to another.
Applicability
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Profession tax is applicable on the following classes of persons:
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An Individual
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A Hindu Undivided Family (HUF)
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A Company/Firm/Co-operative Society/Association of persons or a body of individuals, whether incorporated or not.
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The following category individuals are exempted from professional tax payment in Tamil Nadu
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Individuals exceeding 65 years or age
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Women working exclusively under the Director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojana
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Textile industry badli workers
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Military personnel of the forces as per the Navy Act 1957, the Airforce Act 1950, and the Army Act 1950.
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Parents or guardians of disabled children
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Individuals having permanent disability
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Reservists working for the members of the auxiliary forces or state