Professional Tax is a tax levied by the state on the income earned by employees on rendering their specific services.Just like the income tax, the professional tax is linked to the income slabs. It is deducted at the source by the employer. It is a nominal tax and never exceeds a few hundred rupees a month. The maximum amount of Professional Tax that any state can impose in India is ₹2500.The professional tax applies to employees of almost all industries. It’s also applicable to professionals like doctors, chartered accountants (CAs), consultants, traders, and other self-employed individuals.The employer is responsible for registering, deducting, and paying the professional tax to the government regularly for employees and wage earners. Failure to comply has consequences like fines and penal tax.Every state has its own laws and regulation to govern professional tax of that particular state.