Profession tax: Meaning and Definition

What does profession tax mean?

Profession tax is another name for Professional Tax (PT). A state-level tax levied on salaried employees, professionals, and traders based on their income slabs.

The two names mean the same thing. You will see "profession tax" in some ledgers, reports and contracts and "PT" in others. The full entry covers how it works, with examples.

Read the full definition of Professional Tax (PT)

Topics

Payroll and labour compliance

From the glossary

Related terms.

Payroll and labour compliance Professional Tax (PT) A state-level tax levied on salaried employees, professionals, and traders based on their income slabs. Also called profession tax, P-tax Payroll and labour compliance Provident Fund (PF) A mandatory retirement savings scheme where both employer and employee contribute a portion of the employee's salary each month. Also called EPF, employees provident fund, EPFO contribution TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source TDS returns and challans Form 16 A TDS certificate issued by employers to employees certifying the salary paid, tax deducted at source, and deposited with the government. Also called salary TDS certificate Payroll and labour compliance Employee State Insurance (ESI) A social security and health insurance scheme for Indian workers providing medical, sickness, maternity, and disability benefits. Also called ESIC, ESI contribution, ESI scheme Payroll and labour compliance Factories Act, 1948 The central legislation governing the health, safety, welfare, and working conditions of workers employed in factories in India. Also called Factories Act 1948

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Profession tax

What does profession tax mean?

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