The word 'Professional tax' may be one of those that does not fully reflect the true sense of the term. Contrary to what the name means, it is not a levy imposed exclusively on practitioners. It is a levy on all occupations, industries, and jobs that is imposed depending on the revenue received by such occupation, trade, or employment. It is imposed on employers, self-employed individuals, freelancers, professionals, and those who earn more than the monetary threshold. According to Article 246 of the Indian Constitution, only Parliament has the sole authority to make laws relating to the Union List, which includes income taxes.
Professional tax, on the other hand, is a form of income tax imposed by the state government (not all states in the country chose to levy professional tax). Under Article 276 of the Indian Constitution, which deals with taxes on occupations, trades, callings, and jobs, state governments are also allowed to make laws pertaining to vocational revenue, notwithstanding the fact that it is a tax on wages. It can be remembered that occupational tax is deductible under the Income-tax Act of 1961 which can be excluded from taxable income.