Profession tax is levied and collected by the State Governments in India and it is a Direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor, etc or any person who are into business such as service provider, manufacturer, trader, etc. are required to pay the Professional tax.
This is basically a tax that you have to pay if you are an individual who earns and meets the particular limit. This figure normally differs between states and it is mandatory to pay professional tax if the fixed limit is crossed.
However, it does not get above INR 2500 on a yearly basis no matter which state you may be in.
It is deducted by the employer from their employee every month and remitted to the Government. The tax payer is eligible for income tax deduction for this payment
In India, profession tax is imposed every month. However, not all states impose this tax. The states which impose professional tax are Punjab, Uttar Pradesh, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, Jharkhand and Sikkim.
Now let us see what the requirements under Karnataka Professional Tax Act are.
In Karnataka, both salaried and self employed have to pay tax to the Government of Karnataka. For salaried persons, it is the responsibility of Employer to collect the tax at the time of making salary payments. In case of self-employment, they need not to pay tax if they are appointed by State Government for such purposes. In Karnataka professional taxes are levied as per the Karnataka Tax on Professions, Trades, Callings and Employment Act 1976.
PT Slab Rate for Salaried person
Less than Rs.15000/- p.m.
Rs.15000/- or above 15000/-p.m.
The process of registration is simple. By visiting the website, you can apply online for registration. Go to http://pt.kar.nic.in/ link for professional tax registration and then click on the same. Then step by step you have to follow the instructions as they appear on the website.
4 simple steps to get PT enrollment & registration certificate:
It takes at least 4-5 days of working time in Karnataka to get PT enrollment and registration number.
If you have to get it done in one day, you should visit the regional PT office and submit the application with all documents in physical format. Once the verifying officer is satisfied, he will issue the User credentials for your organization after which you can proceed for PT e-filing.
Note: The important thing is that the person who is going to collect login details from PT office has to take an authorization letter for him/her from organization head with seal and signature. So that he/she can be treated as the concerned person for receiving detail.
Due Date for making payment & Filing the return:
a) For employers – payment should be made annually i.e., on or before 30th April of every year.
b) For employees- both payment & filing of the return should be done on or before 20th of every subsequent month.
If need any assistance in getting PT registration for your business, please feel free to reach us at firstname.lastname@example.org or call us on 080-41633750 or 9880542668.
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