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Professional tax in Karnataka

Get the latest information about professional tax slab rates applicable in Karnataka for the individuals based on their profession and income level.

It is a kind of direct tax that is deducted from gross salary by employer for salaries individuals. According to Article 276 (Clause 2) it is applicable to all kinds of professions, employment and traders. The tax slab varies from state to state according to the applicable laws and compliances. The maximum amount of professional tax usually charged on an individual is roughly around ₹ 2,500.

Professional tax is applicable in Karnataka. The Government of Karnataka is responsible for collecting the same from its citizens depending on their gross income. It is mandatory for every individual whether government or private employee to pay professional tax in Karnataka. 

This tax is mandatory for individuals providing professional services such as doctors, CAs, lawyers etc. On the other hand, respective employers charge professional tax on their employees.

Karnataka Professional Tax Act

The Karnataka Tax on Professions, Trades, Calling and Employment Act 1976 states the provisions for the professional tax that has to be levied on individuals depending on their income level. So if you are running a business or you are a salaried employee in Karnataka it is necessary to know the applicable tax slab rates in Karnataka.

Applicability of Professional Tax in Karnataka

Here’s the complete list of individuals to whom this tax is applicable in Karnataka:

  • Individuals who are earning ₹ 15,000 or more in Karnataka
  • Employers deduct professional tax from salaried individuals’ salary
  • Corporation firms, Hindu Undivided Families (HUFs), clubs, associations, companies and corporate bodies

Applicable Professional Tax Slab Rate in Karnataka

This tax is appliable for both the salaried individuals and organizations. Here is the tax slab rate defined for salaried individuals and organizations:

Tax slab rate for salaried individuals

Here’s the list of applicable tax slab rates in Karnataka for salaried individual based on their income level:

Monthly Salary Range Payable Tax Amount
Salary between ₹ 1 and ₹ 9,999 Nil
Between ₹ 10,000 and ₹ 14,999 Nil
Above ₹ 15,000 ₹ 200

Tax slab rate for organizations

If you are an employer running an organization or a company in Karnataka the amount of tax to be paid is decided according to the Karnataka Shops and Commercial Establishment Act, 1961

Below is the list of applicable tax slab rates in Karnataka for organizations based on their employee count:

Employee count of organization Payable Tax Amount
Between 1 to 5 ₹ 1,000
Between 5 to 10 ₹ 1,500
Above 10 ₹ 2,500

Karnataka Professional Tax Payment Due Date

The due date for Professional Tax in Karnataka for salaried employees and organizations is the 20th of every month.

Karnataka Professional Tax Late Payment Penalty

A certain kind of penalty is imposed for the late payment of professional tax in Karnataka. This is 1.25% in some cases. The maximum penalty applicable is 50% of the total outstanding amount.

Exemption in Professional Tax in Karnataka

Here are some of the exemptions in professional tax in Karnataka:

  • Those self-employed individuals who have not served as an employee for more than 120 days in a certain financial year
  • Salaried employees having less than ₹ 15,000 salary
  • Senior citizens above 60 years are exempted from professional tax
  • Blind, deaf and dumb individuals in Karnataka are exempted
  • Members of Armed Forces such as the Army, Air Force and Navy
  • Foreign individuals who are employed in Karnataka

How to pay Professional Tax in Karnataka (Online)?

Here are the certain steps to pay it in Karnataka online:

  • First of all visit, the Commercial Taxes Department Karnataka and select the option of “E-Payment”
  • Once done, click on the option of “Karnataka Professional Tax”
  • Now you are required to select the “Dealer Type” and fill out the details required
  • Choose the “Next” option and verify the details provided
  • Click on the “Submit” option and note down the number for future reference
  • Choose the “Click here for Payment” option and make the payment. Make sure to download the receipt for future reference.

FAQs (Frequently Asked Questions)

Yes, like other states professional tax is compulsory in Karnataka for earning individuals. Moreover business owners and salaried individuals are required to pay.

The maximum amount of professional tax an individual has to pay in Karnataka is ₹ 2,500. Rest all depends on the income of the individual.

Every individual whether business owner, salaried employee who are earning more than ₹ 15,000 is eligible to pay professional tax in Karnataka. Individuals who provide professional services like doctors, consultants, CAs are required to pay professional tax.

An individual can pay professional tax in Karnataka using online portal of Karnataka government. To pay professional tax online an individual can follow above-mentioned steps.

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