Recent Changes in Professional Tax in Karnataka From 1st April 2023

  • Setindiabiz Team
  • June 7, 2024
Changes in Karnataka Professional Tax
Changes in Karnataka Professional Tax
The Karnataka government has recently amended the Professional Tax regulations, bringing about significant changes for employees and businesses in the state. The Karnataka Tax on Profession, Trades, Calling & Employments (Amendment) Act, 2023 received the Governor’s assent on 13th March 2023 and is effective from 1st April 2023. In this blog post, we will discuss the important aspects of this amendment, focusing on the increased exemption limit and the new professional tax slabs.

Increased Exemption Limit

The amendment has increased the exemption limit for Professional Tax from Rs. 15,000 to Rs. 25,000. Prior to the amendment, employees with gross wages of Rs. 15,000 and above were required to pay Rs. 200 per month as Professional Tax. With the new changes in place, employees drawing wages up to Rs. 24,999 are now exempt from paying Professional Tax in Karnataka.

New Professional Tax Slabs in Karnataka:

The revised Professional Tax slabs, effective from 1st April 2023, are as follows
S.No Salary Range Professional Tax Rate
Monthly Salary (Gross) below Rs. 25,000
No Professional Tax
Monthly Salary (Gross) of Rs. 25,000 and above
Rs. 200 Per Month
In addition to the changes in the exemption limit and tax slabs, the amendment also modifies the percentage provisions for delayed interest payments, escaped tax, and other related aspects.
The recent amendment to the Professional Tax in Karnataka comes as a welcome change for employees earning up to Rs. 24,999, as they are now exempt from paying this tax. This change not only simplifies the tax structure but also provides financial relief to those in the lower income bracket. If you are an employee or employer in Karnataka, it is crucial to stay updated with these changes to ensure compliance with the new Professional Tax regulations.

Leave a Reply

Your email address will not be published. Required fields are marked *

Talk To An Expert

Your Information is safe with us | Privacy Policy | Ver16

Exclusive Offer For CA, CS, CMA, Advocate & Tax Practitioners

Apply for Professional Tax Registration

The Professional Tax is mandatory for every company, LLP, GST-registered business, and other applicable professionals. Registration must be obtained within 30 days of incorporation or registration date. Comply now to Avoid Penalty.

Professional Tax Applicable States

Free consultation and calculator of dues, interest & penalty, if any.

Shops & Establishment Act Registration

(Mandatory to all commercial establishments in every state)
All new establishments must register with the office of the Labour Commissioner (Under the applicable state Shops & Establishment Act) within 30 days of their incorporation for companies or LLPs or the start of business for proprietorships or other businesses.
Free consultation and help to calculate dues, interest & penalty, if any.

Protect Your Trademark Now!

(We help you file trademarks in India and abroad)
Don’t let copycats steal your Trademark or Brand. Register your trademarks now in India to protect your brand, logo, slogan, etc. We have helped over 15K Brands secure their IP.

You Can Protect the Following

Free consultation and Trademark Search in Governemt Database