Professional Tax in Kerala

Professional Tax in Kerala

Kerala Professional Tax (PT) is a tax levied on the income earned by salaried employees and self-employed professionals who earn income working in government and private organizations and any other modes of employment, to the state government. The sole authority to administer professional tax in kerala is endowed on Kerala State Government under the Kerala Muncipal Act, 1994. The professional tax rates are based on the income slabs specified by the Kerala government. The profession tax assessment is done by the concerned municipal authority on a half-yearly basis. The amount paid as professional tax is allowed as a deduction under the Income Tax.

Who Pays Professional Tax in Kerala?

All employees who are earning a half yearly salary of more than Rs. 12,000 are liable to pay professional tax as per the act Kerala Municipality Amendment Act, 2015. It is subject to a minimum limit of earning (Rs. 12,000) and levied as per the state’s applicable slab rates.

Kerala professional tax is applicable to the following:

  • Any company which transacts business in the municipal area for not less than sixty days has to pay professional tax.
  • Any company transacts business outside the limit of the municipal area but has its head office from which its business is controlled within the municipal area for sixty days need to pay PT.
  • Any person who exercises a profession, art or calling or transacts business or holds any appointment, public or private within the municipal area for not less than sixty days also need to pay professional tax.
  • Any person who exercises a profession outside the municipal area, but who resides within the municipal area for not less than sixty days is eligible for PT.
  • Any person transacts business outside the municipal area but has his head office or place from which his business is controlled within the municipal area for not less than sixty days.
  • Any person resides in the municipal area for not less than sixty days in the aggregate and receives any income from investments, will have to pay a half-yearly tax assessed.

Professional Tax Slab Rates in Kerala

Kerala professional tax assessment will be done every six months. The corporation or municipality secretary request to every employer or office heads to assess professional tax for each employee in the firm based on the professional tax slab. This is done every six months in a year, during May and November.

The details should contain the names of all the persons employed as officers along with a statement of the salary or income of such employed persons.

Half Yearly Income Half Yearly Professional Tax
Up to Rs. 11999/- NIL
Rs. 12000 – Rs. 17999/- Rs. 120
Rs. 18000 – Rs. 29999/- Rs. 180
Rs. 30000 – Rs. 44999/- Rs. 300
Rs. 45000 – Rs. 59999/- Rs. 450
Rs. 60000 – Rs. 74999/- Rs. 600
Rs. 75000 – Rs. 99999/- Rs. 750
Rs. 100000 – Rs. 124999/- Rs. 1000
Rs. 125000 and above/- Rs. 1250
  • The delayed payment of professional tax will attract a penalty at the rate of 1% per month. Also for the non- payment, the profession tax will charge a fine of Rs. 5000.