Why did South Delhi Municipal Corporation levy Professional Tax?

South Delhi Municipal Corporation (SDMC) has introduced a new professional tax for self-employed professionals in the SDMC area. The SDMC has passed the proposal which will now go to the Delhi government for notification. In the case of employees of private firms, the companies will deduct the tax amount from salaries, while self-employed professionals will have to pay online or at zonal offices of the South corporation. As per the proposal, those earning less than Rs 50,000 a month are exempt, while those earning Rs 50,001-Rs 75,000 will be taxed Rs 100 per month. Those earning Rs 75,001-Rs 1 lakh per month will have to pay Rs 150, and those earning above Rs 1 lakh will be taxed Rs 200 per month. Watch our Deputy Editor, Shweta Punj explain the nuances of this tax.