KARNATAKA PROFESSION TAX
1. Profession tax is levied under the Karnataka Tax on Professions,
Trades, Callings and Employments Act, 1976:
Profession Tax shall be paid by every person exercising any
Profession or calling or is engaged in any trade or holds any appointment,
public or private as specified in the Schedule to the Act.
[However no tax is payable by persons who have attained age of sixty
five years. Also no tax is payable for holding any Profession for less than
120 days in that year.]
2. A person is defined under the Act to mean, any person who is engaged
in any Profession, trade, callings or employment in the State of Karnataka
and includes :-
· Hindu undivided family (HUF)
· Firm
· Company
· Corporations
· Other Corporate bodies
· Any Society
· Any Club or Association.
[Every branch of a firm, company, corporation or other corporate body, any
society, club or association is treated as separate person for the purpose of
tax liability.]
3. REGISTRATION:
In case of salary or wage earners whose salary or wage for a month is
not less than Rs.10,000/-, the employer is liable to deduct Profession Tax
payable under this Act. It is the responsibility of the employer to deduct tax
and pay on behalf of all such employees within 20 days of expiry of the
month. If the amount of tax deducted in a month is less than Rs.5,000/-, the
employer could opt for payment of such tax within 20 days of expiry of a
Quarter. [Quarter means period ending 31st May, 31st August, 30th
November and 28thor 29th February ].
All such employers other than Government shall obtain a Certificate
of Registration from the Profession Tax Officer of the jurisdiction.
4. ENROLLMENT:
Class of persons enumerated in Sl. No.2 to 74 of the Schedule
(Annexure 1) shall obtain a Certificate of Enrollment from the Profession
Tax Officer of the jurisdiction. Such persons with Enrollment Certificate
shall pay tax every year before 30th of April at the rates specified in Column
3 of the Schedule.
5 EXEMPTION:
The following class of persons are exempted from payment of
Profession Tax.
a. All charitable and philanthropic hospitals or nursing homes
situated in places below the taluk level in all districts of the State
except Bangalore and Bangalore Rural District.
b. Directors of Companies registered in Karnataka and nominated by
the financing agencies owned or controlled by the State
Government or by other statutory bodies.
c. Foreign technicians employed in the State provided their
appointments are approved by the Government of India for the
purpose of exemption from payment of income tax for the said
period( exemption is for a period of 2 years from the date of their
joining duty).
d. Combatant and civilian non combatant members of the Armed
Forces who are governed by the Army Act, the Navy Act and the
Air Force Act.
e. Salaried or wage earning blind persons.
f. Salaried or wage earning deaf and dumb persons
g. Holders of permits of single taxi or single three wheeler goods
vehicle.
h. Institutes teaching Kannada or English Shorthand or Typewriting.
i. A Physically handicapped person not less than 40% of permanent
disability (subject to production of certificate from the HOD of
Government Civil Hospital).
j. An ex-serviceman not falling under Sl No.1 of the Schedule.
k. A person having single child and who has undergone sterilization
operation, subject to production of a certificate from the District
Surgeon, Government Civil Hospital, for having undergone such
operation.
l. Central Para Military Force (CPMF) Personnel.
m. Persons running educational institutions in respect of their
branches teaching classes upto twelfth standard or pre-University
Education.
6. PENALTIES UNDER PROFESSION TAX ACT, 1976.
i) Penalty for non-registration in case of employer – Rs.1,000/-
In case of other persons Rs.500/-.
ii) Penalty for non filing of Returns for an employer Rs.250/-.
iii) Penalty for non-payment of tax by enrolled person and
registered employer with interest at rate of 1.25% per month
and Penalty not exceeding 50% of the tax amount due.
ANNEXURE 1
Schedule to KTPTCE Act 1976.
(Separate attachment enclosed in file named SCHEDULE)
From 01-04-2011 provision has been made for the Registration /
Enrollment, payment and filing of Returns under Profession Tax Act
online through website www.http:\\..................................
1. Profession tax is levied under the Karnataka Tax on Professions,
Trades, Callings and Employments Act, 1976:
Profession Tax shall be paid by every person exercising any
Profession or calling or is engaged in any trade or holds any appointment,
public or private as specified in the Schedule to the Act.
[However no tax is payable by persons who have attained age of sixty
five years. Also no tax is payable for holding any Profession for less than
120 days in that year.]
2. A person is defined under the Act to mean, any person who is engaged
in any Profession, trade, callings or employment in the State of Karnataka
and includes :-
· Hindu undivided family (HUF)
· Firm
· Company
· Corporations
· Other Corporate bodies
· Any Society
· Any Club or Association.
[Every branch of a firm, company, corporation or other corporate body, any
society, club or association is treated as separate person for the purpose of
tax liability.]
3. REGISTRATION:
In case of salary or wage earners whose salary or wage for a month is
not less than Rs.10,000/-, the employer is liable to deduct Profession Tax
payable under this Act. It is the responsibility of the employer to deduct tax
and pay on behalf of all such employees within 20 days of expiry of the
month. If the amount of tax deducted in a month is less than Rs.5,000/-, the
employer could opt for payment of such tax within 20 days of expiry of a
Quarter. [Quarter means period ending 31st May, 31st August, 30th
November and 28thor 29th February ].
All such employers other than Government shall obtain a Certificate
of Registration from the Profession Tax Officer of the jurisdiction.
4. ENROLLMENT:
Class of persons enumerated in Sl. No.2 to 74 of the Schedule
(Annexure 1) shall obtain a Certificate of Enrollment from the Profession
Tax Officer of the jurisdiction. Such persons with Enrollment Certificate
shall pay tax every year before 30th of April at the rates specified in Column
3 of the Schedule.
5 EXEMPTION:
The following class of persons are exempted from payment of
Profession Tax.
a. All charitable and philanthropic hospitals or nursing homes
situated in places below the taluk level in all districts of the State
except Bangalore and Bangalore Rural District.
b. Directors of Companies registered in Karnataka and nominated by
the financing agencies owned or controlled by the State
Government or by other statutory bodies.
c. Foreign technicians employed in the State provided their
appointments are approved by the Government of India for the
purpose of exemption from payment of income tax for the said
period( exemption is for a period of 2 years from the date of their
joining duty).
d. Combatant and civilian non combatant members of the Armed
Forces who are governed by the Army Act, the Navy Act and the
Air Force Act.
e. Salaried or wage earning blind persons.
f. Salaried or wage earning deaf and dumb persons
g. Holders of permits of single taxi or single three wheeler goods
vehicle.
h. Institutes teaching Kannada or English Shorthand or Typewriting.
i. A Physically handicapped person not less than 40% of permanent
disability (subject to production of certificate from the HOD of
Government Civil Hospital).
j. An ex-serviceman not falling under Sl No.1 of the Schedule.
k. A person having single child and who has undergone sterilization
operation, subject to production of a certificate from the District
Surgeon, Government Civil Hospital, for having undergone such
operation.
l. Central Para Military Force (CPMF) Personnel.
m. Persons running educational institutions in respect of their
branches teaching classes upto twelfth standard or pre-University
Education.
6. PENALTIES UNDER PROFESSION TAX ACT, 1976.
i) Penalty for non-registration in case of employer – Rs.1,000/-
In case of other persons Rs.500/-.
ii) Penalty for non filing of Returns for an employer Rs.250/-.
iii) Penalty for non-payment of tax by enrolled person and
registered employer with interest at rate of 1.25% per month
and Penalty not exceeding 50% of the tax amount due.
ANNEXURE 1
Schedule to KTPTCE Act 1976.
(Separate attachment enclosed in file named SCHEDULE)
From 01-04-2011 provision has been made for the Registration /
Enrollment, payment and filing of Returns under Profession Tax Act
online through website www.http:\\..................................
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