Profession tax (PT) is levied by state legislature Ex., in Karnataka PT is levied under (the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976). Every Person who is engaged in profession, Carrying any trade with his professional Knowledge or He has been appointed as mentioned in schedule to the Act.
If any person having the salary of more than Rs. 10000/- should pay professional tax. The Employer is responsible to deduct PT from his salary and pay the amount state government within 20 days from the end of the month if PT payable is less than 5000 per month then the employer may opt to pay Professional Tax on quarterly basis.
All the employers should get certificate of registration from profession tax officer of applicable jurisdiction
Professional tax is a tax that is levied by some of the state governments in India. In Karnataka, it is referred to as the Karnataka Tax on Profession, Trade, Callings and Employment Act, 1976. In short it is also referred to as the PT Act. It is imposed primarily on the income that is earned by people who live and work in a state.
Professionals like chartered accountants, doctors, engineers, architectures, consultants, lawyers and other professionals are supposed to be in the ambit of this Act as well. And this tax is only imposed by state government.
Apart from Karnataka the following states also levy this tax:
Every individual who is working in any profession or job in Karnataka is supposed to pay professional tax. The same is also applicable for people who are engaged in some trade or the other or is in possession of some appointment or the other. Meant this tax is pertinent for employees and employer. It could be a government job or a private one. It does not really matter in these cases.
As far as employers are concerned the following entities need to pay the tax:
Following are the Karnataka professional tax rates for salaried employees as well as wage earners:
|Less than 15,000 per month||Nil|
|More than 15,000 per month||INR 200|
Following is the professional tax that employers have to pay in Karnataka:
|Number of Employees||Applicable Tax|
|Less than or equal to 5 employees||INR 1000 per year|
|Between 5 and 10 employees||INR 1500 per year|
|More than 10 employees||INR 2500 per year|
Following is the professional tax that dealers have to pay in Karnataka:
|Less than INR 2 lakh||No tax|
|Between INR 2 lakh and INR 10 lakh||INR 1000|
|Between INR 10 lakh and INR 25 lakh||INR 1500|
|More than INR 25 lakh||INR 2500|
Following is the professional tax that different kinds of companies have to pay in Karnataka:
|Type of Company||Applicable Tax|
|Limited company||INR 2500 each year|
|Limited liability partnership||INR 1000 per year|
|Partnership company||INR 1000 per year for each partner|
As per rules and regulations of PT registration in Bangalore; an employer needs to get two kinds of registration in this case – i.e. a) certificate of enrollment (EC) and b) certificate of registration (RC). This however depends on whether an employer has people working in her or his company or not. EC is needed for the employers and RC is needed for the employees.
As far as self employed individuals are concerned, it is the duty of individual who has to pay the tax. In case of salaried employees, it is the responsibility of the employee.
The following documents are required to register for professional tax in Bangalore:
If you wish to obtain professional tax registration in Bangalore you can apply it online since it would be easier for you to do complete swiftly.
Following are the steps that you have to follow in this particular regard:
As per rules and regulations in this regard, there are a few things that have to be kept in mind: