Professional tax is a tax levied at the state level in India. It is collected by the State Government by every individual who earns a living through mediums like trade, employment, or professional. Individuals who practice and earn through profession, such as a Company Secretary, Lawyer, Chartered Accountant, Cost Accountant, Doctor or are a Merchant/ Businessperson are liable to pay professional tax in some states of the country. Professional tax is payable by private company employees or by people who earn a salary in general. Every employer in specific states is required to deduct taxes from salary when paid to one or more employees when payment made exceeds certain amount depending upon the state and deposit it to state government account. That entity is required to obtain registration certificate.