Karnataka Professional Tax

Law Governing the Karnataka Professional Tax

Karnataka Professional Tax Slab Rates

Applicability of Karnataka Professional Tax

• It is mandatory for both salaried and self-employed individuals to pay professional Tax, which is collected by the Karnataka State Government.
• For salaried employees, the professional Tax is levied by employers, whereas non-salaried professionals need to pay it to local authorities appointed for collecting the Professional Tax.
• Doctors, advocates, chartered accountants and every other individual engaged in private professions is liable to pay professional Tax in Karnataka.

• Sole proprietor
• Partnership firms
• Limited Liability Partnership
• Corporations
• Hindu undivided family (HUF)
• Firms
• Company and other corporate bodies
• Society
• Club or Association

How to Pay Professional Tax in Karnataka?

• For salaried individuals: For salaried individuals who receive their salary every month, the employers will deduct professional Tax, as per the slabs, from the salary. This is deposited to the concerned authority in the state on behalf of the salaried individual.
• For Self-employed individuals: self-employed individuals and professionals who are not working on a salary basis i.e. those who are not working with any organization and working independently need to pay professional Tax, which can be done by contacting tax offices established in the state to collect the professional Tax.
• For organizations: For organizations, the employers need to register as per the state government of Karnataka’s professional tax regulations. 

Kinds of PT Registration

• Professional Tax (PT) employer registration
• Professional Tax (PT) employee registration

Professional Tax Employer Registration

• No employees – No tax implications.
• In between 1-5 employees – INR 1000.
• In between 5-10 employees – INR 1,500.
• More than 10 employees – INR 2,500.
• Professional Tax Employee Registration

Monthly returns

Due Date for Filing Return

Annual returns

Karnataka Professional Tax E-Payment:

Procedure to Pay Karnataka Professional Tax 

Karnataka Professional Tax Enrolment

• Access the e-Prerna Portal, on the left sidebar, under the e-services section; please click on the ‘Enrolment Application’ option.
• In case you are enrolling for the first time, select ‘New’ in the category of enrolment. Furnish the required financial year for which you want to file your professional Tax.
• Select your professional tax office on the basis of the pin code of your place of work from the drop-down menu.
• If you have already enrolled before then select ‘Enrolled’ in the category of enrolment and fill in the required details including the EC (Enrolment Certificate) no. EC number is a 9-digit alphanumeric number allotted to an individual when he/she gets enrolled for the first time. You also get the option to revise the professional tax payment returns filed in earlier years.
• Select the business status as applicable.
• Select the appropriate class of person to which you belong from the drop-down menu. After selecting the class, please select the appropriate sub-class. Click on ‘Next’
• After clicking on next, you need to enter further details which include personal details like name, father’s name, date of birth, address, etc. as well as firm details in which you are working or your own.
• If you are having a partnership firm then the relevant details of the partners need to be entered.
• After entering all these details, click on ‘Next’. A screen of additional places will be displayed. Only if you are running your business at multiple places (branches), do the required details need to be entered. Click again on ‘Next’
• Now, you need to enter your tax detail as applicable. You can find the applicable tax rate to you in the PT Schedule. After entering the tax details, click on ‘Next’.

Payment of Tax

Payment of Professional Tax – Offline Method:

Karnataka Professional Tax Late Payment Penalty:

• In case there is a delay in payment of professional Tax, the state government of Karnataka will charge 1.25% per month for late payment.
• However, the maximum penalty the state will charge is 50% for late payment of the total unpaid professional tax amount. It is therefore advised not to forget to pay professional Tax on time or delay the payment of professional Tax.