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Understanding Professional Tax In Karnataka: Tax Slab, Due Date, Penalty, Exemption

Introduction

According to Clause 2 of Article 276 of the Indian Constitution, the state governments of India fundamentally have the power to impose professional taxes on individuals and businesses. Persons earning from professions like trading, calling, employment in other business firms, doctors, lawyers etc. are liable to pay this tax. In this article we will discuss in detail various aspects of doing professional work in Karnataka including professional tax registration in Karnataka.

Professional Tax in Karnataka

The Karnataka state government collects professional taxes from you based on your gross income. Whether you are working in a private organization or associated with a government organization, it is mandatory for all individuals in Karnataka to pay professional tax. Additionally, self-employed persons, doctors, chartered accountants, lawyers etc. have to pay this tax to the local authorities appointed to collect professional tax.

Use our free Professional Tax Calculator - https://thegstco.com/pages/professional-tax-calculator

Professional Tax Slab Rate in Karnataka

Following are the professional tax slab rates in Karnataka for salaried individuals:

Monthly Salary Range Amount Payable per Month
Rs 1 to Rs 24,999 0
Rs 25,000 and above Rs 200

Karnataka Professional Tax Payment Due Date

Type of Registration Frequency Due Date of Payment
Professional Tax Enrollment (PTEC) Annual 30th of April of beginning of financial year
Professional Tax Registration (PTRC) Monthly 20th of Succeeding month

Karnataka Professional Tax Late Payment Penalty

If for any reason you pay late professional tax in Karnataka then it results in the Karnataka state government imposing a penalty on you. A penalty of 1.25% is imposed in such cases. The maximum penalty applicable is 50% of the total outstanding amount.

Persons who are Exempted from Paying Professional Tax in Karnataka

There are certain persons who are exempted from paying professional tax in Karnataka like:

  • Self-employed individuals who have not served substantively as employees for more than 120 days in a financial year.
  • Salaried individuals whose monthly gross income is less than ₹ 25000 per month.
  • Citizens aged 60 years and above.
  • Persons with 40% permanent disability
  • Members of the armed forces, such as the Army, Air Force and Navy

Conclusion

As per Karnataka Tax Act 1976, all persons having monthly gross income of ₹25000 or more in profession, business, calling and employment are basically liable to pay professional tax in Karnataka. If you want to avoid penalty charges in Karnataka then it is mandatory to pay professional tax on time. In this article we have given you complete information about professional tax in Karnataka.

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