Profession Tax

Profession Tax is levied by State Governments in India. We are covering the details of Karnataka Tax on Profession, Trade, Callings and Employment Act, 1976 (Call it as PT Act). We at Balakrishna and Co., Bangalore help the entities to obtain new registration, amendment of existing registrations, filing of monthly and annual returns, etc. Our team is well versed with Profession Tax matters. In case, you need these services, we would be glad to assist you. Please write to contact@balakrishnaandco.com.

+ Who has to register under PT Act?

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.

+ Should a private limited company get PT registration?

Yes. Every person who is engaged in any profession or business in the State of Karnataka has to get PT registration. This means, the following entities have to get PT registrations.

• Hindu undivided family (HUF).
• Firm.
• Company (Public or Private Limited).
• Other Corporate bodies.
• Any Society.
• Any Club or Association.

+ Is there a separate registration for branches?

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.

+ How much tax to be paid by the employees?

• Those employees who are drawing a monthly salary of Rs.15,000 or less, need not pay any taxes.
• Those who get more than Rs.15,000 salary per month, have to pay Rs.200 per month.

It is the obligation of the employer to deduct Profession Tax from the salary of the employees and deposit it on or before the 20th of the subsequent month.

+ When to file the annual return?

Every employer registered, shall furnish to the assessing authority within sixty days (on or before 30th May) of the expiry of the year, a return in the prescribed form showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof during the preceding year.

+ Who is exempted from the registration?

Some of the exempted class of persons are

• The persons who have attained the age of 65 years are exempt from Profession Tax.
• Salaried or wage earning deaf and dumb persons.
• A Physically handicapped person not less than 40% of permanent disability (subject to production of certificate from the HOD of Government Civil Hospital).

Other registration required to start the business :

• GST Registration
• Registration under Karnataka Shops and Establishment Act
• MSME | Udyog Aadhaar Registration
• Employee Provident Fund Registration (PF Registration) 
• Employee State Insurance Registration (ESI Registration)
• STPI Registration or Non-STPI Registration
• Import Export Code (IEC)
• Trade License from BBMP