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

As salaried individuals (both experienced and new joiners), you must know about the professional tax deduction. However, non-salaried individuals must know about this as the term professional tax is not restrictive. It includes individuals earning through any profession. The State Government of India levies a professional tax on all earning individuals, and the tax rate may vary from one state to another.

This piece discusses professional tax in Kerala. So, start reading and learn about Professional Tax in Kerala!

What Is Professional Tax in Kerala?

Professional Tax in Kerala is levied on individuals involved in Government or Non-Government organisations or any kind of profession. It also includes Chartered Accountants, lawyers or individuals engaged in some kind of business.

The power of imposing professional tax arises from Kerala Municipality Act, 1994 under the Kerala Government.

Follow the table mentioned below to get an idea about the professional tax slabs in Kerala.

Income Slab (Half-yearly)	Payable Profession Tax (Half-yearly)
Earning up to ₹ 11,999	Nil
Earning between ₹ 12,000 and ₹ 17,999	₹ 120
Earning between ₹ 18,000 and ₹ 29,999	₹ 180
Earning between ₹ 30,000 and ₹ 44,000	₹ 300
Earning between ₹ 45,000 and ₹ 59,000	₹ 450
Earning between ₹ 60,000 and ₹ 74,999	₹ 600
Earning between ₹ 75,000 and ₹ 99,999	₹ 750
Earning between ₹ 1,00,000 and ₹ 1,24,999	₹ 1,000
Earning ₹ 1,25,000 and above	₹ 1,250

The Professional Tax rate in Kerala is easily understandable from the above-mentioned table. Now, individuals must be wondering who is accountable for collecting this tax. Let’s learn about it!

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

Respective municipal corporations are responsible for paying P tax in Kerala.

From the above discussion, one can understand that all earning individuals must pay professional tax in Kerala. As per the employment type, individuals can be divided into two parts. These are as follows,

1. Salaried Individuals

According to the Kerala Municipality Amendment Act, 2015, salaried individuals who are drawing a half-yearly salary of ₹ 12,000 or above must pay P tax in Kerala.

Employers deduct the amount from the salary of salaried employees and deposit it with the State Government.

2. Self-employed Individuals

According to the Kerala Municipality Amendment Act, 2015, self-employed individuals with a half-yearly earning of ₹ 12,000 or above must pay P tax in Kerala.

Self-employed individuals can make payments directly or through the respective local authorities appointed to do the same.

How to Make Online Payment for Professional Tax in Kerala?

Individuals and organisations can make online payments for professional tax in Kerala. Currently, the facility is available in five corporations in Kerala. These are, Thiruvananthapuram, Kozhikkodu, Thrissur, Kollam, Kannur.

Individuals willing to pay P Tax in Kerala can register their profile after providing professional details. After successful registration on the basis of income slab, the system will compute the payable professional tax amount and allow individuals to pay the same.

When Is the Due Date for Professional Tax Payment in Kerala?

Earning individuals must complete payment of professional tax for the first half of the year (April-September) before 31st August.

On the other hand, earning individuals must complete payment of professional tax for the second quarter of the year (October-March) before February end.

In events like delayed professional tax payment, individuals have to pay 1% interest each month as a penalty charge. However, in the case of non-payment of P Tax in Kerala, earning individuals have to pay ₹ 5,000 as a fine.

Who Are Exempt from Paying Professional Tax in Kerala?

Following is the list of individuals who can enjoy the benefits of professional tax exemption in Kerala.

Parents of children who have a mental disability or permanent disability
Badli workers belonging to the textile industry
Individuals who are suffering from a permanent physical disability, including blindness
Members of the forces as per the Army Act, 1950, the Navy Act, 1957, and the Air Force Act, 1950
Members of reservists or auxiliary forces serving in the state
Parents or guardians of individuals suffering from a mental disability
Women involved as an agent under the Director of Small Savings or the Mahila Pradhan Kshetriya Bachat Yojana
Persons whose age is above 65 years

Skim through the details on professional tax in Kerala as mentioned above attentively. Also, identify the income slab and pay timely and accordingly to avoid late payment charges.

Frequently Asked Questions

✓ What are the important documents for the professional tax registration process in Kerala?

The important documents required for the professional tax registration process in Kerala include Memorandum of Association, list of board of Directors, address proof and Id proof of the employer, Articles of Association, PAN Card, list of employees with salary details, lease agreement.

✓ What information should earning individuals provide in the application form while registering for professional tax?

Earning individuals must provide information like half-yearly income, name and designation of the employee, amount of tax recovered through salary deductions in the professional tax registration application form.