Short Note on Professional Tax – Karnataka State

Learn about Professional Tax in Karnataka: Who needs to pay, rates, returns, registration, and penalties for non-compliance.

Applicability:- Karnataka State

Professional Tax does not mean that only people who practice a profession need to pay it.

It applies to mostly all sections of establishments.

Rate of Contribution:- Per Employees

a) Salary (Gross Wages) up to Rs.14,999:- Nil

b) Salary (Gross Wages) 15,000 or more :- Rs.200/- Per Month

Maximum amount can levy as Professional Tax is restricted to Rs. 2,500 Per Year Per Employees and Foreign employees are not liable to pay professional tax in India.

Return:-

a) Monthly PT Remittance And Filing Of Return on every month of day 20th.

b) Annual Returns on every year on day 30th of May.

Registration:-

Online within 30 days of business beginning through website https://pt.kar.nic.in/.
A separate application needs to be submitted if you have more than one places of business.

Compliances:-

a) Online Registration through online https://pt.kar.nic.in/.

b) Monthly PT Remittance And Filing Of Return.

c) Annual Returns filing as per Form 5A.

Penalty for Non-Compliance:-

a) If employer do not register then would be charged a fine of Rs.1,000/-. In case, employer are not a business owner this fine would come down to Rs.500/-.

b) If employer you do not file returns for employees then would have to pay a fine of Rs.250/-.

c) If employer has registered for the tax and are not paying it then a fine of 1.25% of the outstanding amount would be levied on a monthly basis. However, this can go up to a maximum of 50% of the outstanding amount.

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Author – CA Gaurav Agrawal, Kishore Gupta & Co, Chartered Accountants in Practice from Central Delhi and can be contacted at gauravag.ca@gmail.com & Mobile Number 9711033545.