Professional tax is levied by Municipal Corporations of the particular state and the majority of the Indian states impose this duty. The professional tax is a source of revenue for the State Government which helps them in implementing schemes for the welfare and development of the region. It is also payable by members of staff employed in private companies. It is mandatory to pay professional tax. The rate of professional tax charged is based on the Income Slabs set by the respective State Governments. The taxable amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act.In India, professional tax is imposed at the state level. However, not all states impose this tax. The states which impose professional tax are Karnataka, Bihar,West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat,Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.