PROFESSIONAL TAX REGISTRATION IN BANGALORE,  KARNATAKA

Professional Tax (PT) is a direct tax imposed on all sorts of trades, professions, and employment in relation to the income of the individual or entity.


fees
Starting at Rs.4,000/-(Excluding Govt. fees)
fees
EMI Available

Professional Tax Registration Bangalore, Karnataka

All Traders, Business owners and professionals like doctors, engineers, lawyers, chartered accountants, consultants, architectures, and other professionals are also supposed to pay PT.

director
Enroll
name of company
Get Certificate
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File Returns

Documents required for the Professional Tax Registration
in Bangalore, Karnataka


The following documents are needed to register for the professional tax in Karnataka

  • Address proof of employers such as directors, partners, or proprietor
  • Address proof and registration certificate of the company
  • Address proof of business
  • Financial records of the business
  • PAN (Permanent Account Number) of the employers
  • Details of employees
  • Photographs of employers
  • Salary particulars of the employees

Who needs to Pay & Register for Professional Tax in Bangalore, Karnataka

The following individuals, professionals, and entities need to pay PT according to Karnataka laws:
  • Companies and Corporations
  • Corporate bodies
  • Firms, Clubs, Societies, and Associations
  • Hindu Undivided Family
  • Salaried Individuals
  • Self-employed professionals
  • Wage Earners

Exempted from Professional Tax Registration in Karnataka

Exemption for the following individuals and institutions from paying PT as per Karnataka laws:
  • Dumb/Blind/Deaf/ and physically disabled individuals earning a wage
  • Charitable nursing homes and hospitals
  • Companies nominated by State-controlled financing agencies
  • Ex-servicemen
  • Foreign technicians approved by the Central Government
  • Members of the Armed forces and Attrition in Central Armed Police Forces (CAPFs)

Professional Tax Rates in Karnataka

Professional tax rates for wage earners and salaried employees in Karnataka are as follows:

Income                                                                                                   Applicable Tax 
Below INR 15,000 per month                                                                Nil
Above INR 15,000 per month                                                                INR 200
 

Professional tax rates for employers in Karnataka are as follows:

Number of EmployeesApplicable Tax
Below 5 employeesINR 1000 per year
Between 5 and 10 employeesINR 1500 per year
Above 10 employeesINR 2500 per year

Professional tax rates for dealers in Karnataka are as follows:

TurnoverApplicable Tax
Below INR 2 LakhNo tax
Between INR 2 Lakh and INR 10 LakhINR 1000
Between INR 10 Lakh and INR 25 LakhINR 1500
Above INR 25 LakhINR 2500
 

Professional tax rates for different kinds of entities in Karnataka are as follows:

Type of CompanyApplicable Tax
Limited companyINR 2500 each year
Limited liability partnershipINR 1000 per year
Partnership companyINR 1000 per year for each partner

Exempted from Professional Tax Registration in Karnataka

Two kings of Professional Tax Registration in Karnataks

  • Professional tax (PT) employer registration
  • Professional tax (PT) employee registration
 

Professional Tax Employer Registration

Employer registration is intended for all organisations and businesses. This registration is irrespective of the employees working in the business. The Certificate of Enrollment, as issued by the PT Office, is the certificate of registration. This certificate includes the details of the tax payable by the employer and payment date. Failure to forward the PT within the scheduled time may lead to a fine. The tax slabs are fixed according to the number of employees hired.  

Professional Tax Employee Registration

The employer deducts professional tax for the employee. The employers obtain the Certificate of Registration.

Professional Tax Monthly returns

The employers must forward taxes according to the PT slab on behalf of the employees. For employees with a gross monthly salary above INR 15,000, the professional tax is Rs. 200 per month. The employers must pay this on behalf of employees. The filing of returns must be made within 20 days from the month for which the tax is subtracted from the employee’s monthly payments during the past month. Failing to do so may incur a penalty of Rs. 250 for every month.

Annual returns

All businesses and employers with Enrollment Certificate must forward their taxes before the 30th of April every year according to the tax slab. Furthermore, employers with the Enrollment Certificate are obligated to file yearly returns within 60 days of the close of the fiscal year.

Professional Tax Registration Process in Karnataka

The Karnataka Commercial Taxes Department administers an online platform to file returns and pay taxes through the e-PRERANA. A taxpayer can utilize the online portal for various e-facilities, for instance, filing of returns, e-payment of taxes, filing enrollment application etc. Following are the steps for registering for professional tax:
  • Enrolment registration for Professional tax
  • E-payment
  • printout the enrolment application
  • Receiving the enrolment certificate
  • Receiving the acknowledgement of enrolment
  • Professional tax return filing


Penalties and Due Dates Under Profession Tax Act, 1976

According to rules and regulations in this respect, the following are things that should be taken into account:
  • The employers require to pay the yearly taxes that apply to them.
  • If you have a certificate of enrollment (EC), you would have to pay the professional tax every year before 30th April, according to rates apply in your cases.
  • Employers need to deduct the monthly taxes applicable to the employees and submit it to the government.
  • If an employer has a certificate of registration (RC), then the employer requires to file a return within 20 days following the preceding month. This would show the salary and wages that the employer has paid along with the amount of taxes has deducted in this regard.
  • If you did not pay the professional tax within the specified time, you would be incurred a penalty of INR 250.
  • Employer requires to file an annual tax return within 60 days following the preceding year. This would show the salaries and wages the employer has paid in the past year as well as the taxes the employer has deducted in that year.

Professional Tax Registration FAQs

According to the rules and regulations of professional tax registration in Karnataka; an employer requires obtaining two types of registration: a) EC and b) RC. However, this depends on whether or not an employer has employed workers or not. EC is required for the employers and RC is required for the employees.
Applicable government fee varies from state to state. The state government levies the charges.
It also varies from state to state. Every state has its own exemption guidelines and administering provisions.
  • The employer is responsible for Professional Tax collection in case of salaried workers.
  • Self-employed people are responsible themselves to pay the Professional.
In case an employer failed to get the certificate of enrollment, will be levied a penalty of Rs. 1,000, apart from the due yearly tax payments. In case a person fails to get the certificate of registration, the interest of 1.25% for every month will be imposed.