While the Central government levies TDS, it is the State government that imposes the professional tax. Additionally, TDS is applicable throughout the entire nation. On the other hand, certain states and union territories are exempted from paying professional tax. TDS is like an advanced tax, whereas professional tax is an indirect tax. Moreover, only salaried employees are liable to pay TDS. But, anyone earning an income, be it an employee or a professional practitioner or a freelancer, has to pay the tax.