Karnataka Professional Tax Slab Rates

As per the Karnataka Professional Tax Slab Rates, all individuals with a monthly gross income less than Rs.15,000 are exempted from any charges. However, employees with a monthly gross salary above Rs.15,000 are levied a professional tax of Rs.200.

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.

Professional Tax Slabs in Karnataka

The Karnataka Tax on Professions, Trades, Callings and Employment Act 1976 levies professional tax in Karnataka. The slabs for wage/salary earners in the state are as follows:

Monthly Salary Amount Payable
Up to Rs.14,999 Nil
More than 15,000 Rs.200 per month

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:

  • Corporations
  • Hindu undivided family (HUF)
  • Firms
  • Company and other Corporate bodies
  • Society
  • 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 dont work with any organization need to pay this tax by contacting locale PT offices established for collecting tax.

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.

Professional Tax FAQs

  1. In which states is Professional Tax imposed?
  2. Professional Tax is imposed in the below mentioned states:

    • Sikkim
    • Madhya Pradesh
    • Tripura
    • Odisha
    • Meghalaya
    • Kerala
    • Assam
    • Gujarat
    • Tamil Nadu
    • Maharashtra
    • Telangana
    • Andhra Pradesh
    • West Bengal
    • Bihar
    • Karnataka
  3. Can individuals pay the professional tax in a lump sum?
  4. There is a composition scheme present in certain states. For example, in Maharashtra, the government introduced the composition scheme where individuals can make an advance of Rs.10,000 as a lump sum payment and they will be discharged of their liabilities for a period of 5 years.

  5. Are there any costs in the Professional Tax registration process?
  6. Applicable government charges may vary as per each state since Professional Tax is state-level. The charges levied by the government are on actual basis. However, the convenience charge and professional fees are covered in the plan price.

  7. Are there any exemptions from paying Professional Tax?
  8. Payments and exemptions of Professional Tax depend on the state. Each state has its own exemption criteria and governing provisions.

  9. What are the different cities where the Professional Tax service will be delivered?
  10. The service of Professional Tax is state specific in case individuals need a shop licence. The different cities where the service is provided are mentioned below:

    • Delhi
    • Pune
    • Chandigarh
    • Bengaluru
    • Surat
    • Jaipur
    • Kolkata
    • Hyderabad
    • Gurugram
    • Mumbai
  11. Who takes on the responsibility for Professional Tax deductions and payment of the amount with the Government?
    • The employer handles all Professional Tax details in case of salaried employees.
    • In the case of self-employed individuals, the Professional Tax must be paid by the individuals.

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