Professional Tax is a direct tax that, unlike Income Tax, is governed by states and not the central government. Since Union territories come under the control of the Central Government, these are not subject to pay the professional tax. Thus, all the 9 union territories; Andaman and Nicobar Islands, Chandigarh, Dadra, and Nagar Haveli and Daman and Diu, Delhi, Jammu and Kashmir, Lakshadweep, Ladakh, and Puducherry do not need to pay. Also, most of these are very small areas and contribute less to the economy so they are exempted from this tax.