Profession Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors. The following states impose this tax: Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. This tax needs to be deducted from the salary or wages paid; the amount varies by state and amount, but is capped at Rs. 2500 per annum.
Employees' State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. Employees' State Insurance Corporation (ESIC) maintains the fund according to rules and regulations stipulated there in the ESI Act 1948. The ESI Scheme applies to an individual who is employed in a non-seasonal factory wherein 10 or more persons are employed. With effect from 1 January 2017, any employee with Rs.21,000 per month or less, come under the coverage of the ESI scheme.
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