Professional Tax Registration in Karnataka

Professional tax registration is the process by which employers and self-employed individuals register with the local tax authorities to comply with state-imposed professional tax regulations. This tax is levied on professions, trades, callings, and employments, and the registration ensures that the tax is correctly deducted and paid to the state government. Employers must register to deduct the tax from their employees' salaries, while self-employed individuals must register to pay the tax themselves.
Professional tax is a tax charged by the state government on both salaried and self-employed individuals. According to Clause 2 of Article 276 of the Indian Constitution, this tax applies to all types of professions, jobs, and trades within the state. Only 17 states in India impose this tax, and Karnataka is one of them.

Professional Tax registration in Karnataka, documents and process of PT registration in karnataka

PT registration

  • The Karnataka state government collects professional tax based on your gross income. Whether you work in a private company or a government job, you must get professional tax registration in Karnataka.
    Self-employed people, like doctors, accountants, and lawyers, also need to pay this tax to local authorities. For salaried employees, their employers are responsible for deducting and paying the professional tax.
    The Karnataka Tax on Professions, Trades, Calling and Employment Act 1976 outlines the rules for paying professional tax in the state. According to this law, the government charges this tax based on an individual's income. Therefore, if you work in Karnataka, it's important to know the tax rates.

Applicability

  • Individuals earning Rs 25,000 or more are required to pay professional tax in Karnataka. For salaried employees, the employer will deduct a specified amount and submit it to the state government.
    There are two kinds of PT registration in Karnataka:
    Professional Tax Enrolment (PT-EC)
    This is an annual tax paid to the Karnataka State government. The following entities must enroll and pay professional tax:
    a. Persons registered or required to register under the Karnataka Goods and Services Act, 2017.
    b. Self-employed individuals in professions, trades, callings, and employments who have been in their profession for more than 2 years.
    c. Employers of establishments with more than five employees, as defined by the Karnataka Shops and Commercial Establishments Act, 1961.
    Professional Tax Registration (PT-RC)
    This applies to employees at the establishment level. Employers must deduct Rs 200 per month from employees earning more than Rs 25,000. Professional tax in Karnataka also applies to various entities, including corporations, firms, societies, Hindu Undivided Families (HUFs), clubs or associations, companies, and other corporate bodies.

The Professional Tax Registration in Karnataka has following benefits:

  • Minimal Restrictions
    Minimal Restrictions Complying with Professional Tax regulations is straightforward, leading to a smooth registration process with minimal restrictions.
  • Legal Requirement
    Paying Professional Tax is mandatory by law. Timely payment helps avoid penalties and any legal action against employers or self-employed individuals.
  • Smooth Registration Process
    Smooth Registration Process The simplicity of Professional Tax Compliance ensures a smooth and hassle-free registration process.
  • Supports Development and Welfare Programs
    Professional Tax provides revenue for state governments, aiding in the implementation of various welfare and development programs in the region.
  • Deduction Claims
    Employers or self-employed individuals can claim a deduction for the professional tax previously paid.

FAQ'S


According to a recent amendment in the Karnataka Tax on Professions, Trades, Callings, and Employment Act 1976, effective from April 1, 2023, anyone required to register under GST must also apply for a PT-EC (Profession Tax Enrolment Certificate).

Contact Solubilis. Approach Solubilis with required documents. We apply through Application form along with supporting documents and receive registration certificate. Next, you will receive the acknowledgement for the registration. And then you may engage in Professional tax return filing in Karnataka.

Visit the e-PRERANA website. For an Enrolment Certificate (EC), select “Enrolment Application” from the e-Services menu on the left panel and fill in the required details. Make professional tax online payment Karnataka, print the enrolment application, and you will then receive your enrolment certificate.

All employers in Karnataka must pay their taxes by April 30th each year. If payment is delayed, the state government may impose a fine of up to 50% of the total due amount.

Professional tax is paid at the end of the month, assuming you have practiced your profession during that month. Therefore, once professional tax is paid, it is non-refundable. However, you can claim a deduction for professional tax when you do professional tax returns filing in Karnataka your income tax returns.

Enrolment Certificate issued under the Karnataka Tax on Professions, Trades, Callings, and Employments Act, 1976.

Online Meeting

Instant Online Meeting