Under the professional tax act

Professional Tax is a type of Tax that the respective state governments in India levy on all individuals who make money through different professions, trades, and employment. Every individual who is earning is obligated to pay professional Tax. The calculation and amount collected may differ from one state to another, but it has a limit of Rs. 2500 per year.

Professional tax falls under the State List (List II) purview as per the Seventh Schedule of the Indian Constitution.

The State Commercial Tax Department collects the professional tax, eventually reaching the municipality corporation fund.

Exemptions: 

Persons suffering from permanent physical disabilities (including blindness).

Parents or guardians of someone suffering from mental retardation.

Individuals running an educational institute

A foreign national employed by the relevant state

Any individual above 65 years

Women serving as staff under the Government’s Mahila Pradhan Kshetriya Bachat Yojana

Persons 65 years and above (60 years in the case of Karnataka).