Question

What is a professional tax?

• A. It is an indirect tax on the income of all earning individuals.
• B. It is an indirect tax on the profits of companies and corporates.
• C. It is a direct tax on the income of all earning individuals.
• D. It is a direct tax on the profits of companies and corporates.

Answer 1

The correct option is C It is a direct tax on the income of all earning individuals.

Professional tax is a direct tax on the income of all earning individuals. It is imposed by the state governments. Direct tax on the profits of companies and corporates is called corporate tax.