If you ever pay close attention to your payslips, you will notice that there is a deduction every month under the category of ‘Professional Tax’. This deduction takes place along with HRA, basic salary, and conveyance charges (if applicable).
What is Professional Tax?
Professional tax is a tax that is levied by a state government on all individuals who earn a living through any medium. This should not be confused with the definition of professionals that indicates people such as doctors etc.
Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. This 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.
Tax slab applicable under Professional tax for Karnataka is
| S. No. | Class of Persons | Rate of tax |
|---|---|---|
| 1 | Salary or wage earners whose salary or wage or both, as the case may be, for a month is Rs. 25,000 and above. | Rs. 200 per month |
| 2 | Persons registered or liable to be registered under the Karnataka Goods and Services Act, 2017. | Rs. 2,500 per annum |
It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.
Filing Professional Tax Returns can be a complex and time-consuming process. We Offer Professional Tax Return Filing services to assist clients in fulfilling their tax obligations. Our team of experts ensures that the entire process of Professional Tax Return Filing is completed promptly and hassle-free.