A Professional Tax is a tax charged and collected by the local municipal authorities in India like Panchayat, Municipalities and Municipal Corporations. Those persons who have been appointed, working or holding office for salary or wages in any office or company or firm or enterprise or establishment or institution or receiving income from deposits and those having half -yearly income not less than Rs. 12,000/- .For the purpose of charging and collecting professional tax, employee can be grouped into categories according to the amount of total income accrued in a half yearly basis. In all other cases the liable person who engaged in self employment, companies and those transacting business must pay the maximum professional tax at RS. 1,250/- on half – yearly basis. In Kerala, a D & O Trade license issued by the health department of local LSGD is mandatory for pay the professional tax. Every person who liable to deduct the professional tax must pay the tax along with the half yearly return.