Tax
Professional tax
A small state-level tax on salaried and self-employed people, capped at ₹2,500 a year.
Professional tax is levied by some states on anyone earning an income, deducted straight from salary.
It is capped at ₹2,500 per year and varies by state; a few states don't charge it at all.
It is separate from income tax and shows up as a small monthly deduction on your payslip.
For example
In many states, around ₹200 a month is cut from your salary as professional tax, adding up to the ₹2,500 yearly cap.