Professional Tax in Karnataka: Tax Rates, Payment Process & Due Date

Are you a working professional in Karnataka? Did the deduction of professional tax confuse you when you first got the salary slip? Do not feel embarrassed; you are not alone. As a working professional, individuals have to pay multiple taxes, and professional tax is one of them. Self-employed individuals are also not free from this.

The piece discusses in detail professional tax in Karnataka, its slab rates and many more. If you are a new joiner and want to know, the following sections will be a great help. So, start reading!

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What Is Professional Tax in Karnataka?

All earning individuals of Karnataka (qualifying the income threshold) must pay professional tax to the State Government.

The Karnataka Tax on Professions, Trades, Callings and Employment Act 1976 manages professional tax within the State.

The State Government of Karnataka levies professional tax on individuals on the basis of their income from all kinds of professions, trade and employment.

Take a look at the following table to know about the PT slab in Karnataka.

Salary (Monthly)	Amount Payable (Monthly)
Up to ₹ 15,000	Nil
Above ₹ 15,000	₹ 200

As individuals are aware of PT in Karnataka and slab rates, let’s learn about other important details!

Who Is Responsible for Collecting and Paying Professional Tax in Karnataka?

Karnataka State Government is responsible for collecting professional tax within the State.

Persons responsible for paying professional tax in Karnataka can be identified easily as per the employment status such as,

Salaried Individual

For salaried individuals, the employers deduct P tax in Karnataka from salary and deposit it with the State Government.

Self-employed Individual

Self-employed individuals must pay Karnataka PT tax to the local authorities designated for collecting the same.

In addition, the applicability of professional tax in Karnataka extends to certain categories. These are as follows,

Firms
Hindu undivided family (HUF)
Corporations
Company and other Corporate bodies
Society
Club or Association

Are you looking for ways to make online PT payments in Karnataka? Read the following section and do it easily.

How to Pay Professional Tax in Karnataka?

Here is a step-by-step guide to paying P tax in Karnataka,

Step 1 - Visit the official website of the Government of Karnataka, Commercial Taxes Department and click on e-Payment (All acts).

Step 2 - A new webpage will open; click on ‘Next’. On the next webpage, click on ‘KPT (Karnataka Professional Tax)’ from the available option.

Step 3 - ‘e-Payment system’ will open. Select ‘Dealer Type’ such as self-employed professional, registered employer, dealer under VAT, dealer under GSTIN. Fill up important fields such as name, office, period, tax period year and e-payment medium, mobile number and other details.

Step 4 - Click on ‘Next’. Verify provided details and click on ‘Submit’.

Step 5 - Note down the auto-generated number (in respect of this transaction) for future reference and click on ‘Click here for payment’.

Step 6 - Follow the instructions and click on ‘Submit’ to complete PT payment in Karnataka.

Step 7 - Payment details will appear on the screen. Take a screenshot of the payment details for future reference.

When Is the Due Date for Paying PT in Karnataka?

All employers and businesses of Karnataka who have enrollment certificates must pay professional tax before 30th April each year according to the tax slab.

If persons responsible for paying professional tax in Karnataka fail to do so within the stipulated time, they have to pay 1.25% per month for late payment.

Note: The Karnataka State Government can charge the highest 50% of the total due of P tax amount as a penalty charge.

Who Are Exempted from Paying Professional Tax in Karnataka?

The professional tax exemption in Karnataka is applicable for the following persons,

Self-employed who have not been working for more than 120 days in a financial year,
Individual who is blind, deaf and dumb, handicapped, or diagnosed with at least 40% of permanent disability,
Foreign technicians deployed in the Karnataka state,
Combatant of defence force or civilian non-combatant members of the defence forces according to the Navy Act, the Army Act, and the Air Force Act.

Note down the payment due date of professional tax in Karnataka so that you can pay it timely and avoid penalty charges!

Frequently Asked Questions

All

Do employers need to register in Karnataka to deduct professional tax on behalf of employees?

Yes, employers need to register in Karnataka to deduct professional tax on behalf of employees as per the Karnataka professional tax regulations.

Does the employer have to pay the penalty if they fail to file professional tax returns?

Yes, employers have to pay ₹ 250 every month as a penalty if they fail to file professional tax returns.