Professional Tax Registration in Karnataka

Posted by Enterslice on March 4th, 2019

Professional Tax is a tax levied on the income earned by salaried employees and professionals including chartered accountants, doctors, and lawyers. Professional tax is levied by the state governments at the state level in India. In this blog, we will discuss professional tax, the person liable to pay professional tax in Karnataka, Professional tax rate in Karnataka, procedure to pay professional tax in Karnataka and all other necessary aspects of professional tax in Karnataka.

What is a Professional Tax all about?

Professional tax is imposed by the State Government and the same is collected from individuals working in Government, Private and Non-government organizations. Professional tax is normally imposed on all the people who are earning salary or people who are practicing a profession such as a chartered accountant, company secretary, doctors etc. Professional tax is levied by Municipal Corporations also the majority of the Indian States impose this tax. Professional tax is a source of revenue for the government.

Who is Liable to Pay Professional Tax in Karnataka?

In Karnataka, both salaried, as well as self-employed earners, have to pay professional tax to the state government of Karnataka. So far as salaried persons are concerned it is the responsibility of the employers to collect the tax. With regard to the self-employed people, they only need to pay it to people who are appointed by the state government for such purposes. Various professionals such as doctors charted accountants, lawyers etc need to pay professional tax in the state of Karnataka only.

The Professional Tax Rate in Karnataka

In the state of Karnataka, professional taxes are levied as per the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976. If persons in Karnataka who earn wage and salary less than Rs 15000 per month, then professional tax does not apply to them. If someone in Karnataka is earning more than Rs 15000 per month, then per month he needs to pay Rs 200 as professional tax. 

Who are Exempted from Paying Professional Tax in Karnataka?

There are certain classes of people who do not need to pay professional tax in the state of Karnataka. List of the persons exempted from payment of professional tax in Karnataka is given below:

1. All the charitable hospitals
2. Nursing Homes
3. Director of companies being registered in the State and being nominated by financing agencies.
4. Technicians who belong to other countries but working in the state of Karnataka.

How to enroll for professional tax registration in Karnataka?

Persons wish to wish  to register themselves for professional taxes in Karnataka need to follow the guidelines listed below:

1. Persons wish to register themselves for professional taxes in Karnataka need to visit the official personal tax website.
2. By visiting the website the persons can apply online for registration.
3. Eligible Person requires to find out the link for professional tax enrollment and need to click on the same
4. After that persons need to follow the instructions as appear on the website.

Karnataka professional tax e-payment

Procedure to  make e-payment of professional tax in Karnataka is given below:

1. A professional taxpayer can pay the professional tax through online by visiting the official website.
2. The website allows taxpayers to submit tax returns and make payment of professional tax by entering their personal and financial details.
3. Taxpayers can also generate the certificate of Tax payment online without contacting the officers of professional tax.
4. The website helps professional taxpayers as they can now pay taxes from home on monthly, quarterly and annual basis.

Documents required for professional tax registration in Karnataka

Following are the list of documents that required for professional tax registration in Karnataka :

1. Copy of PAN card of applicants
2. In the case of a company, Pan card of director of the company
3. Passport Size photo of applicant or director in case it is a company
4. Mobile number and email ID of applicant  and director if it is a company
5. Residence proof of the applicant

Penalties for Non-payment of Professional Tax in Karnataka

1. If an employer does not register for professional tax in Karnataka, then the employer will be charged a fine of Rs 1000.
2. In case, you are not a business owner then fine will come down to Rs 500.
3. In case an employer fails to file returns for his/her employees then the employer requires to pay a fine of Rs.250
4. If anyone is already registered for the professional tax but fails to pay it, then a fine of 1.25 percent of the outstanding amount shall be levied on a monthly basis. However, this may extend up to 50 percent of the outstanding amount.

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