Professional Tax in Bengaluru, Karnataka State

Professional Tax in Bengaluru, Karnataka State

Professional tax is a direct tax levied by the State Government on all kinds of professions, trades and employment in proportion to the income of the individual. Article 276, Clause 2 of the Indian Constitution covers the provision concerning professional tax in the country. Professional tax is imposed by state governments on the individuals who are employed in governmental, private and non-governmental organizations. The quantum of levy varies according to the strata of income, but wouldn’t exceed INR 2,500 in a year. Professional tax in the State of Karnataka is administered by the “Karnataka Tax and Profession, Trade, Callings and Employment Act, 1976.” The Act stipulates that individuals whose monthly income is above Rs. 10,000 are obligated to remit this tax. The provision isn’t applicable for professionals aged 65 and above, as well as those who have held their respective professions for less than 120 days in a given year.

Who Pays Professional Tax in Bengaluru or the State of Karnataka?

Individuals earning Rs.10,000 or more per month are liable to pay the professional tax in Karnataka under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. If you are a salaried individual having a salary more than Rs.10,000 but less than Rs. 15000, you need to pay Rs.150 per month as a profession tax. In case your salary is more than Rs. 15,000 then you are required to pay Rs.200 per month. If you are a legal or medical practitioner or a professional consultant then the professional tax depends on the tenure of your service.

Categories of individuals that can claim exemption from paying professional tax:

  • An employee who has been employed for less than 120 days.
  • Senior citizens who have completed 65 years of age,

  • Parent of a mentally challenged child,
  • Persons or parents of children suffering from physical disability,
  • Physically handicapped persons with 40 % or more disability and,
  • Badli workers in the textile industry.

How to Pay Professional Tax in Karnataka?

The Karnataka government has developed a website dedicated to the professional tax named as e-Prerana. You can enrol yourself here for the professional tax payment and also pay it online. You can also go to the website for any kind of further information related to the professional tax in Karnataka. For salaried employees, their employers will deduct professional tax from their salary per month and deposit it to the concerned authority.

Professional Tax Slab Rates in Bengaluru, State of Karnataka

The Government of Maharashtra of also revised its professional tax slab rates for the financial year 2015-16 which has since been the slab rate applicable to deduct professional tax by employers and continue to the financial year 2019-2020. It offers special privileges for women professional tax payers. A woman whose monthly income is Rs.1000 of less than Rs.1000, she is exempted from paying professional tax in Maharashtra. The professional tax to be remitted to the Maharashtra Government is subject to the minimum income level of an individual. An individual earning less than 7,500 or up to 7,500 does not have to pay any professional tax in Maharashtra.

Monthly Salary Professional Tax Levied (P.M)
Less than Rs. 15000/- NIL
Rs. 15000/- and above Rs. 200
  • 1.25% is charged per month for late payment of professional tax in Karnataka. The maximum penalty charged for late payment is 50% of the total outstanding amount.