Professional tax is the tax levied by different state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection. 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. Professional Tax mainly classified in two different categories PTRC (Professional Tax Registration Certificate) and PTEC (Professional Tax Enrollment Certificate).

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The function of a PTRC is to allow employers to deduct and deposit professional tax to and from the salaries of their employees. The PTEC, on other hand, allows the businesses to pay their entities and their representatives (e.g. director's, proprietor's, partner's etc.) professional tax. Hence, a regular businesses requires both, PTRC and PTEC, as by law it has to pay their own professional tax, as well as their employees too. However, in instances where entity does not have any payable employees, then they can just opt for PTEC, and not PTRC.  This is especially the case for professional practitioners such as CAs, Doctors, Advocates, Architects, etc. They usually have their own registered practices, but may not have employees that meet the eligibility criteria of professional tax.  

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