Profession tax is the tax levied and collected by the state governments in India. Professional tax can be defined as a tax that is levied by a state government on all individuals who earn a living through any medium. This must not be confused with the definition of other professionals such as doctors or lawyers. This is a type of tax that needs to be paid by each and every individual earning income. The calculation of this tax and the amount collected differs from one state to another.
Employers collect a certain amount as professional tax from the monthly salaries of their employees. This portion is then paid by the employer to the government. In case they fail to do so, they can be subject to penalties for not collecting or failing to pay the professional tax. Also, if you do it for anyone, then you are liable to pay the professional tax yourself.