Reply To: Professional Tax in Kerala & Payroll Software that calculate Professional Tax

[Steve Alex]

#22242

Hello Prajith,

The profession tax for the first half (April-September) of the year should be paid on or before August,31. Similarly, for the second half (October-March), the profession tax should be paid before the end of February. In case, the profession tax payment gets delayed, you will be liable to pay a penalty @1% per month. Also, a fine of Rs.5000 will be charged for non-payment of profession tax.

As per the Kerala Municipal Act, 1994, it is mandatory to pay profession tax for all employees or who are drawing a half-yearly salary of more than Rs.12,000. The profession tax assessment is done by the concerned municipal authority on a half-yearly basis.
The profession tax slab rates are as follows :

Income Slab (half-yearly)	Profession Tax (payable half-yearly)
Upto Rs.11,999	Nil
From Rs.12,000 to Rs.17,999	Rs.120
From Rs.18,000 to Rs. 29,999	Rs.180
From Rs.30,000 to Rs. 44,999	Rs.300
From Rs.45,000 to Rs. 59,999	Rs.450
From Rs.60,000 to Rs. 74,999	Rs.600
From Rs.75,000 to Rs. 99,999	Rs.750
From Rs.1,00,000 to Rs. 1,24,999	Rs.1000
From Rs.1,25,000 and above	Rs.1250