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Professional Tax is a state-level tax imposed on income earned by individuals engaged in professions or trades, regulated by state governments to generate revenue.
Professionals such as doctors, lawyers, consultants, and employees with specified income thresholds are liable to pay Professional Tax in states where it's applicable.
Professional Tax calculation varies by state, typically based on income slabs or fixed rates specified by state laws, deducted monthly from employee salaries by employers.
Benefits include compliance with state tax laws, eligibility for professional tax deductions, and contributing to state revenue for infrastructure and development.
Individuals and businesses must register with their respective state tax departments and make monthly or annual tax payments as per state regulations and schedules.
