Professional tax (PT) is a tax levied, by the government, on employees and professionals.
A source of revenue for the state governments, this direct tax helps implement schemes for the welfare and development of the region. The tax rates vary from state to state.
Just like income tax, professional tax is linked to income slabs. It is deducted at the source by the employer. One of the Salary Deduction components, PT is a nominal tax that never exceeds a few hundred rupees a month. Professionals have to pay it directly to the government.