Professional Tax is collected by the State Government from individuals working in government, private and non-government organizations (NGOs). The highest amount of professional tax charged in India is Rs. 2,500. A state cannot charge more than Rs. 2,500 as professional tax per year. Professional tax is determined by the income level of an individual and subject to a minimum income level. Professional tax slab rates differ from states to states. In India, professional tax is levied as per the Article 276, Clause 2 of the Indian Constitution.
Karnataka Professional Tax:
All working and self-employed professionals whose monthly income is above Rs.1000 need to pay professional tax in Karnataka. Professional earning less than Rs.10000 need not pay any professional tax to the Karnataka Government. A maximum amount of Rs.2400 is payable as professional tax in Karnataka. Professional Tax in Karnataka is managed by Karnataka Tax on Profession, Trade, Callings and Employment Act, 1976.
Who pays Professional Tax in Karnataka?
Both salaried and self- employed individuals need to pay professional tax which is collected by the Karnataka State Government. For salaried employees, professional tax is levied by employers whereas non-salaried professionals need to pay it to local authorities appointed for collecting professional tax. Doctors, lawyers, chartered accounts and any other individuals engaged in private professions are liable to pay professional tax in Karnataka. Professional tax in Karnataka is applicable for the following categories:
- Hindu undivided family (HUF)
- Company and other Corporate bodies
- Club or Association
How to pay Professional Tax in Karnataka?
For salaried employees, their employers will deduct professional tax from their salary per month and deposit it to the concerned authority. Self-employed professionals who don’t work with any organization need to pay this tax by contacting locale PT offices established for collecting tax.
Karnataka Professional Tax Slab Rates 2014-2015:
Like all other states such as Maharashtra, Andhra Pradesh, Tamil Nadu etc., the State Government of Karnataka also change its professional tax rates every year. Mentioned below are the professional tax slab rates applicable for the financial year 2014 -2015.
|Monthly Gross Salary||Amount Payable as Professional Tax per month|
|Less than Rs.10000||Nil|
|Rs. 10000 to Rs.14,999||Rs. 150|
|Rs. 15000 and above||Rs. 200|
Karnataka Professional Tax Slab Rates 2015-2016:
The professional tax slab rates for Karnataka are revised for the financial year 2015 -2016. Mentioned below are the slab rates applicable for the current financial year.
|Monthly Gross Salary||Amount Payable as Professional Tax Per Month|
|Up to Rs 15,000||Nil|
|Rs 15,001 and or above||Rs. 200|
Karnataka Professional Tax E-Payment:
Professional tax payers in Karnataka can pay their professional tax online by visiting the website called e-PRERANA. The website allows taxpayers to submit tax returns and make tax payments by entering their personal and financial details. Taxpayers can also generate the certificate of tax payment online without contacting the PT offices. The website helps professional tax payers pay tax on monthly, quarterly and annual basis.
Karnataka Professional Tax Late Payment Penalty:
1.25% is charged per month for late payment of professional tax in Karnataka. The maximum penalty charged for late payment is 50% of the total outstanding amount.