Profession Tax (PT) is a tax levied by the respective State Government in India. In Karnataka, Profession Tax has to be paid by everyone following a Profession or is engaged in any business or holds employment in public or private as specified in the Schedule to the Act.

PT registration is mandatory for all professions including business establishments.  The professional tax registration criteria are:

·        Mandatory registration for companies, for business and professionals as a company.

·        The companies employing salaried employees of more than one.

All business establishments must obtain PT Employer Registration within 30 days of commencement of business and the annual PT fees to be paid by the employer is Rs. 2500.  Professional Tax Employee:  Any employee whose income is Rs. 15,000 or more is liable to pay PT.  In Karnataka, it is Rs. 200 per month.

HOW DOES PROFESSIONAL TAX REGISTRATION WORK FOR YOU?

Professional Tax is a State Act.  Every state defines the tax applicability.  Professional tax in general covers all types of professions and employees.  Further, limits are notified by the respective State Governments.  In general, professional tax Act is based on two broad categories.

All establishments covering service sector also, functioning in the states having its office are required to register under the Act and further renew every year.

All establishments having employees drawing salary above the specified limit of the respective state governments should register as an employer and deduct monthly specified amount from the employee’s salary and remit to the government and further file the returns with applicable details.

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