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

Karnataka Professional Tax Registration in Bangalore

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:

  • Maharashtra
  • Andhra Pradesh
  • Kerala
  • Tamil Nadu
  • Gujarat
  • West Bengal
  • Assam
  • Chhattisgarh
  • Meghalaya
  • Orissa
  • Tripura
  • Madhya Pradesh
  • Bihar
  • Telangana
  • Sikkim

Who has to Pay Professional 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:

  • Sole proprietor
  • Corporations and corporate bodies
  • Partnership firm (registered / unregistered)
  • Hindu undivided family (HUF)
  • Limited company (private / public)
  • Trust / society / club / association
  • Limited liability partnership

What are the Rates of Professional Taxation in Karnataka?

Following are the Karnataka professional tax rates for salaried employees as well as wage earners:

Income Applicable Tax
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:

Turnover Applicable Tax
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

What are Enrollment and Registration Certificates? Who Needs Them?

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.

Who is has to Deduct the Tax and Submit It to the Government?

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.

Documents Needed for PT Registration in Bangalore

The following documents are required to register for professional tax in Bangalore:

  • Address proof of establishment
  • Salary details of the employees
  • Particulars of employees
  • Address of business owners such as partners, director, or proprietor
  • Financial statements of the business
  • PAN (Permanent Account Number) of the business owners
  • Address proof and certificate of incorporation of the company
  • Photos of business owners

Professional Tax Registration Process

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:

  • Professional tax registration enrolment
  • E-payment
  • Printing the enrolment application
  • Getting the enrolment certificate
  • Getting the acknowledgment of enrolment
  • Professional tax return e-filing

Compliance under Professional Tax

As per rules and regulations in this regard, there are a few things that have to be kept in mind:

  • The first step is that an employer has to pay the yearly taxes that are applicable for the employers.
  • If you have an EC you would have to pay the tax every year prior to 30th April. This needs to be done according to rates that are specified in these cases.
  • You would also have to make sure that you are deducting the monthly taxes applicable for your employees and submitting the same to the government.
  • If an employer has an RC she or he would have to file a return within 20 days after the previous month.
  • This would show the wages and salary that she or he has paid as well as the amount of taxes has deducted in this particular respect.
  • You need to file the returns and pay the taxes electronically.
  • If you do not pay the tax or file the return within the stipulated time you would have to pay a penalty of INR 250.
  • The employer would also have to file a yearly tax return within 60 days after the previous year.
  • This would show the wages and salaries she or he has paid in the previous year as well as the taxes that she/ he has deducted in said year.