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Professional Tax Rates in Karnataka

The state of Karnataka has passed an Act known as the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 with the purpose to collect revenue to be used in Employment Generation Guarantee Scheme. Following are the persons which require itself to be registered with the Professional Tax Department of Karnataka are as under:

Sl. No. Type of Person
1. Every employer.
2. Persons acting as Directors of the Companies, the Partner of a firm or designated partner and partners of Limited Liability Partnership (LLP).
3. The persons like HUF, firm, Limited Liability Partnership (LLP), Company, Corporations, other Corporate bodies, any societies, Club or Association.
4. Professionals like Legal Practitioners including Solicitors and Notaries, Medical Representatives including Medical Consultants and Dentists, Doctors, Chartered Accountant, Company Secretaries, Management Consultants, Architects, Engineers, RCC Consultants, Tax Consultants, Insurance Agents.

There are various other entities which is required to register itself under the Professional Tax laws of respective states in India and to pay the taxes on time and to file appropriate Professional Tax Return.

Karnataka Professional Tax Slab for Financial Year 2016-17
Monthly Salary Professional Tax (P.M).
Up to Rs. 15,000/- Nil.
Rs. 15,001/- & or Above Rs. 200/-
Karnataka Professional Tax Slab for Financial Year 2015-16
Monthly Salary Professional Tax (P.M).
Up to Rs. 15,000/- Nil.
Rs. 15,001/- & or Above Rs. 200/-

Exemption from payment of Karnataka Profession Tax:

  1. No tax shall be collected for the person which have been employed for less than 120 days in the financial year.
  2. The person who have completed the age of 65 years.

Meaning of Salary or Wages:

“Salary” or “Wage” includes pay or wage, dearness allowance and all other remunerations received or receivable by any person including any amount received by way of arrears of salary or bonus by whatever name called whether payable in cash or kind and also includes perquisites and profits in lieu of salary, as defined in Section 17 of the Income Tax Act, 1961.

Explanation: –

(i)Where ‘bonus’ by whatever name called is received in part or full, then such bonus shall be spread over for twelve months of the year or to such number of months the bonus relates for purposes of computation of ‘Salary’ or ‘Wage’ for such months.

(ii)Where arrears of salary is received in part or full, then such arrears shall be spread over for the relevant months for which it relates for purposes of computation of ‘Salary’ or ‘Wage’ for such months.Professional Tax Rates in Karnataka

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2 thoughts on “Professional Tax Rates in Karnataka”

  1. The notification says that “Professional tax exemption to persons drawing salary/wages less than Rs. 15000/- in a month.” So as per my view persons drawing salary/wages of even Rs.15000/- are not exempted for profession tax. Kindly correct me if i’m wrong. Thank you!!!

  2. For Business proprietor and for contractor what is the rate for professional tax? above 20 lakhs and below 20 lakhs turnover?

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