Professional Tax Registration in Bangalore

Profession Tax is collected by the state government and it is applicable to salaried employees and individuals. Employees who are working in an organization or establishment like a factory need to go for the registration process of professional tax in Karnataka.

Professional tax registration in Karnataka is necessary for the businesses within 30 days of employing staff. The professional tax (PT) should be deducted from the salary paid to the employees. The amount of professional tax varies in each state, which is capped at Rs. 2400 per annum.

There are two types of Profession tax which are applicable for Business Entity:

• PT applicable to a business entity: The amount fixed as per PT Act, which varies from Rs 1,000 to Rs 2,500/- per annum. This is required to be deposited every year on or before by April 30th, as per the Karnataka PT Act.
• Business entities who are employing employees require to deduct PT from employees. This amount is deposited with the government. As per Karnataka PT Act, Rs 200 needs to be deducted from an employee drawing a gross salary of Rs 15,000 every month.

Case of Enrollment :

Karnataka Act 35 of 1976 states that, in Schedule for Class of persons from Sl. No. 2 to 74 will have to obtain a Certificate of Enrollment from the Profession Tax Officer of the jurisdiction. The companies should enroll for PT for doing business in Karnataka and pay the annual tax before 30th April of every year.

Case of Registration :

The Sole Proprietorship/ Partnership/ LLP/ OPC/ Pvt Ltd/ Public companies or any other business organization which have employees salaried above Rs. 15,000 monthly, have to pay professional tax.

• Address proof of establishment along with address proof of partners, proprietor, or directors.
• PAN card of partners, proprietor, and directors.
• Photo of partners, proprietor, and directors.
• Salary details of employees
• Financial statements of the establishment
• In case of company, certificate of incorporation and address proof.

• An individual earning Rs. 15,000/- or more per month is liable to pay the professional tax in Karnataka under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. A salaried individual who has a salary of Rs. 15,000/- or more, needs to pay Rs. 200/- per month as a professional tax.
• If an individual is a legal or medical practitioner or a professional consultant, then the professional tax depends on the service tenure.

The professional tax is remitted by individuals and business entities engaged in any profession, trade, callings, or employment, be it government and private entities.

It is compulsory for both salaried and self-employed individuals to pay the professional tax collected by the Karnataka State Government. For salaried employees, the professional tax is levied by employers, whereas non-salaried professionals need to deliver it to local authorities appointed for collecting the professional tax. Doctors, advocates, chartered accounts, and every other individual engaged in private professions can pay professional tax in Karnataka.

Professional Tax in Karnataka applies to the following categories:

Business entities such as:

• Sole proprietor
• Partnership firms
• Limited Liability Partnership
• Corporations
• Hindu undivided family (HUF)
• Firms
• Company and other Corporate bodies
• Society
• Club or Association