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Professional Tax Registration in Karnataka

Professional Tax is levied by some state governments as a tax on profession, trade, calling or employment. The states levy this tax by virtue of constitutional powers under article 276 of the constitution of India, However, the maximum professional tax on profession cannot be more than 2500 per year as mandated by the law passed in the Parliament of India. In the state of Karnataka, the tax on the profession is levied by virtue of    In India it was first introduced in the year 1949 at a rate of Rs. 250 which is 2500 now for each year. The state governments has been asking parliament to raise the limit of 2500 to Rs. 7500 so that the professional tax becomes a source of major revenue for the states. The professional tax is also levied on slab basis as income. professional Tax Registration in Karnataka

The professional tax in case of employment is required to be deducted by the employer while making payment of salary at the rate prevalent in the state in which employee is serving. The rate of professional tax is different from state to state.

The state governments implement collection of professional tax differently. Some collects through their sales tax department, some have separate department, some collects through Municipal Corporation while some collects through panchayat. All the assesse of professional tax need to get registered with professional tax department, collect applicable taxes and deposit the same within time and file professional tax return.

Professional Tax Registration @ Rs. 4000/- in Bengaluru

Professional Tax in Bengaluru: is levied under THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT ACT, 1976. It is levied on Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association of Persons, Corporation or any other corporate body in the state of karnataka.

There is nil rate of professional tax on salaried individual whose salary is less than 15000, however Rs. 500 per month is to be deducted from the salary of employees drawing a salary more than 200 per month. Different slab rates has been prescribed for different class of individuals.

Penalty in Karnataka on non-compliance of Professional Tax Payment: a penalty of 1.25% per month can be levied on non-payment or short payment of professional tax plus 50% of total amount due can also be levied by Karnataka authorities.

Professional Tax Applicability

Professional Tax Registration in Karnataka

States Imposing PT
States Not Imposing PT
1. Andhra Pradesh 1. Arunachal Pradesh
2. Assam 2. Delhi
3. Bihar 3. Goa
4. Chhattisgarh 4. Haryana
5. Gujarat 5. Himachal Pradesh
6. Karnataka 7. Jharkhand
8. Madhya Pradesh 8. Nagaland
9. Maharashtra 9. Punjab
10. Manipur 10. Rajasthan
11. Meghalaya 11. Sikkim
12. Mizoram 12. Uttar Pradesh
13. Orissa 13. Uttaranchal
14. Puducherry 14. Andaman & Nicobar
15. Tamil Nadu 15. Chandigarh
16. Tripura 16. Daman & Diu
17. West Bengal 17. Dadra & Nagar Haveli
  18. Lakshadweep

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