Professional tax is a tax levied on individuals on the working class - salaried individuals, working in Government or Non-Government entities or of any profession. This also includes Chartered Accountants/Lawyers or persons carrying out some form of business.
Kerala Municipality Act
The power of levelling professional tax stems from Kerala Municipality Act, 1994, under the Kerala Government. As per the Kerala Municipality Amendment Act, 2015, it is mandatory for all individuals who are drawing a half-yearly salary of more than Rs. 12,000 to pay Kerala professional tax.
Also, as per the Section 16 of the Income Tax Act, 1961, the amount paid by the salaried individual as profession tax can be claimed for income tax deduction.