Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax. Professional tax is a tax on income earned by employees or self employeed people. Professional tax is a deductible amount for the purpose of Income-tax Act, 1961 and can be deducted from taxable income. Professional Tax is like Income tax but is collected by the State Government while Income Tax is collected by the Central Government.