Professional tax is imposed by Municipal Corporations of particular state and majority of the Indian states levy this duty. The professional tax is a source of revenue for the State Government which helps them in executing schemes for the welfare and development of the region. It is also due by members of staff employed in private companies. It is necessary to pay professional tax. The rate of professional tax charged is based on the Income Slabs set by the respective State Governments. The tax amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act.