Professional tax registration is the process by which employers and self-employed individuals register with the local tax authorities to comply with state-imposed professional tax regulations. This tax is levied on professions, trades, callings, and employments, and the registration ensures that the tax is correctly deducted and paid to the state government. Employers must register to deduct the tax from their employees' salaries, while self-employed individuals must register to pay the tax themselves.
Professional tax is a tax charged by the state government on both salaried and self-employed individuals. According to Clause 2 of Article 276 of the Indian Constitution, this tax applies to all types of professions, jobs, and trades within the state. Only 17 states in India impose this tax, and Karnataka is one of them.