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An Overview of Professional Taxation in Karnataka – Duplicate – [#15409] – Copy

The state government levies a professional tax, which is levied on both salaried employees and people. Employees working in an organization or institution, such as a factory, would also be required to go hi through the professional tax registration process in Karnataka.

Professional tax registration in Karnataka is required for businesses within 30 days of hiring workers and for professionals within 30 days of beginning their practice. The professional tax must be deducted from the payor wages received. However, the amount of professional tax varies by state and is restricted at Rs. 2500 per year. If you have employees in more than one state, you must get professional tax registration in each state.

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The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 governs professional taxation in the state. If an employee or professional has a monthly salary that exceeds the specified amount, they must pay professional tax in Karnataka, India. Professional taxes can also be paid online.

Eligibility Criteria for Professional Tax Registration in Karnataka

If the employee’s salaries are more than Rs. 10,000/- per month, the employer is required to go through the process of professional tax registration in Karnataka.

 

Under this act, the employer would be required to deduct a portion of the employee’s earnings in such cases.

 

The employer is required to deduct the professional tax before the end of the month’s 20 days.

 

If the threshold or amount of professional tax payable in Karnataka is less than Rs. 5000/- per month, the employer might choose to pay professional tax within 20 days after the quarter’s end.

 

The responsible officer must issue a professional tax registration certificate to all employees.

 

Professional tax registration is required for all people and professionals. Individuals listed in Sl. Nos. 2–74 of the Schedule (Annexure 1) must acquire a Certificate of Enrollment from the Profession Tax Officer.

Who is required to pay Professional Tax in Karnataka?

Professional Tax must be paid by the following individuals:

 

Professional tax will not be charged in Karnataka for the following individuals:

 

  • Senior citizens are not required to pay professional tax.

  • Except for Bangalore and Bangalore Rural District, all charity and philanthropic hospitals or nursing homes are located in districts below the taluk level.

  • If you are a director of a Karnataka-registered firm and are also nominated by financing agencies owned or controlled by the State Government or other statutory organizations.

  • Such foreign technicians who are employed in the state and whose employment has been approved by the Government of India for tax exemption for a set length of time (exemption for 2 years from the joining date).

  • Professional tax is also excluded in Karnataka for members of the Armed Forces as defined by the Army Act, the Navy Act, and the Air Force Act.

  • People who are blind are paid salaries and wages.

  • People who are deaf or deafeningly deafeningly deafeningly deafeningly

  • Holders of a single taxi or a single three-wheeled goods vehicle permit.

  • Institutions are concerned with the teaching of Kannada or English shorthand or typewriting.

  • A physically disabled individual must have a lifelong impairment of at least 40%. (subject to production of a certificate from the HOD of Government Civil Hospital).

  • If you have a single child and have had a sterilization operation, you must produce a certificate from the District Surgeon, Government Civil Hospital.

  • Personnel of the Central Para-Military Force (CPMF).

  • If you carry an educational institution in respect of their branches teaching classes up to the 12th grade or pre-university education.

What are the ramifications of non-registration of professional taxes, non-filing of returns, and non-payment of taxes in Karnataka?

Registration of Employers

The penalty for an employer failing to register for professional tax in Karnataka is Rs 1000. In the case of any other individual, Rs. 500/-

 

Employee Enrollment

If an employee fails to register for professional tax, the penalty will be from the date of employment until the registration is obtained, plus simple interest at 1.25 percent per month, plus a penalty equivalent to the tax to be paid until the date of payment.

 

Non-filing of Tax Return

The penalty for failing to file a professional tax return is Rs. 250/- for an employer.

 

Failure to Pay Tax

If an enrolled individual or registered employer fails to pay the tax, interest at the rate of 1.25 percent per month will be charged, and the penalty will not exceed 50 percent of the tax amount due.

Registration of Employers

The penalty for an employer failing to register for professional tax in Karnataka is Rs 1000. In the case of any other individual, Rs. 500/-

 

Employee Enrollment

If an employee fails to register for professional tax, the penalty will be from the date of employment until the registration is obtained, plus simple interest at 1.25 percent per month, plus a penalty equivalent to the tax to be paid until the date of payment.

 

Non-filing of Tax Return

The penalty for failing to file a professional tax return is Rs. 250/- for an employer.

 

Failure to Pay Tax

If an enrolled individual or registered employer fails to pay the tax, interest at the rate of 1.25 percent per month will be charged, and the penalty will not exceed 50 percent of the tax amount due.

Registration of Employers

The penalty for an employer failing to register for professional tax in Karnataka is Rs 1000. In the case of any other individual, Rs. 500/-

 

Employee Enrollment

If an employee fails to register for professional tax, the penalty will be from the date of employment until the registration is obtained, plus simple interest at 1.25 percent per month, plus a penalty equivalent to the tax to be paid until the date of payment.

 

Non-filing of Tax Return

The penalty for failing to file a professional tax return is Rs. 250/- for an employer.

 

Failure to Pay Tax

If an enrolled individual or registered employer fails to pay the tax, interest at the rate of 1.25 percent per month will be charged, and the penalty will not exceed 50 percent of the tax amount due.

What is the procedure for registering as a professional taxpayer in Karnataka?

Registration for the E-Prerna Portal-

The penalty for an employer failing to register for professional tax in Karnataka is Rs 1000. In the case of any other individual, Rs. 500/-

 

Employee Enrollment

First and foremost, the applicant must visit the website (https://pt.kar.nic.in/(S(t5zcqklwvzs1h42orkxvrtdv))/Main.aspx). The applicant would need to click on Enrollment of Application on the application’s left sidebar. If the applicant is registering for the first time to pay professional tax, the enrolment of professional tax must be taken into account. If the applicant is new, click and pick the new enrolment category.

 

Non-filing of Tax Return

The penalty for failing to file a professional tax return is Rs. 250/- for an employer.

 

Failure to Pay Tax

If an enrolled individual or registered employer fails to pay the tax, interest at the rate of 1.25 percent per month will be charged, and the penalty will not exceed 50 percent of the tax amount due.

Registration for the E-Prerna Portal-

The penalty for an employer failing to register for professional tax in Karnataka is Rs 1000. In the case of any other individual, Rs. 500/-

 

Employee Enrollment

First and foremost, the applicant must visit the website (https://pt.kar.nic.in/(S(t5zcqklwvzs1h42orkxvrtdv))/Main.aspx). The applicant would need to click on Enrollment of Application on the application’s left sidebar. If the applicant is registering for the first time to pay professional tax, the enrolment of professional tax must be taken into account. If the applicant is new, click and pick the new enrolment category.

 

Non-filing of Tax Return

The penalty for failing to file a professional tax return is Rs. 250/- for an employer.

 

Failure to Pay Tax

If an enrolled individual or registered employer fails to pay the tax, interest at the rate of 1.25 percent per month will be charged, and the penalty will not exceed 50 percent of the tax amount due.

Registration for the E-Prerna Portal-

The penalty for an employer failing to register for professional tax in Karnataka is Rs 1000. In the case of any other individual, Rs. 500/-

 

Employee Enrollment

First and foremost, the applicant must visit the website (https://pt.kar.nic.in/(S(t5zcqklwvzs1h42orkxvrtdv))/Main.aspx). The applicant would need to click on Enrollment of Application on the application’s left sidebar. If the applicant is registering for the first time to pay professional tax, the enrolment of professional tax must be taken into account. If the applicant is new, click and pick the new enrolment category.

 

Non-filing of Tax Return

The penalty for failing to file a professional tax return is Rs. 250/- for an employer.

 

Failure to Pay Tax

If an enrolled individual or registered employer fails to pay the tax, interest at the rate of 1.25 percent per month will be charged, and the penalty will not exceed 50 percent of the tax amount due.