New Delhi, March 28 -- In the last few weeks, some states have tweaked professional tax rules during budget presentations. The Assam government has announced the exemption of professional tax for those earning up to Rs.15,000 for all the working people in the state. In contrast, the Karnataka government proposed amendments to professional tax rules, increasing it to Rs.200 from Rs.150 in February. Here's a look at how professional tax works.

Professional tax is levied on people engaged in any type of profession or business based on income. The state government collects this tax on employees and businessmen, including freelancers and professionals, who earn over a certain income level.

It must be noted that not every state levies profess...