Professional Tax (PT) is a tax imposed by state governments in India on salaried employees, self-employed individuals, and professionals such as doctors, chartered accountants, and lawyers. The amount of professional tax varies across states and is typically deducted by employers from the salary of employees and remitted to the state government. For self-employed professionals, PT must be paid directly to the respective state authority. It is a statutory obligation under the respective State Professional Tax Act, and non-compliance may attract penalties or interest. While professional tax is a liability for individuals and businesses, it is allowed as a deduction from taxable income under the Income Tax Act, thereby reducing overall tax liability. Employers are responsible for deducting PT monthly or quarterly and issuing certificates for employees, which serve as proof for tax filing. Maintaining accurate records of professional tax payments ensures compliance, transparency, and avoids legal issues. Professional guidance is recommended to ensure correct computation, timely payment, and proper reporting of professional tax for both employers and self-employed individuals.