A professional tax is a tax imposed by a state government on all people who make a living by whatever means. This is not to be confused with the meaning of professional, which refers to persons like physicians. This is a tax that must be paid by everyone who earns money. This tax affects company owners, employees, traders, and people in a wide range of occupations. The method of computation and amount collected varies by state, although there is a cap of Rs. 2500 per year.
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