The state government levies a professional tax, which must be paid by the employer, the employee, and the professional. Employees who operate in an organization or facility, such as a factory, must also go through the professional tax registration process.
Professional tax registration is required for businesses within 30 days of hiring employees and for professionals within 30 days of establishing their practice and must be withheld from the paid salary or compensation. Also, Professional tax, varies from state to state and is capped at Rs. 2500 per year. If you have employees in more than one state, professional tax registration is required in each state.