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

source : legalraasta

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!

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.

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.

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.

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.

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

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.