The professional tax has to be filed either monthly or annually by the employer’s CA. It is the tax that has to be paid by all working professionals and the slab varies from state to state. For example, in Karnataka whose monthly salary is rupees 15,000 or more has to pay Rs. 200 as a monthly professional tax. Professional tax is paid to the state government and its rate is subject to the state government’s regulation. All working professionals will be aware of the professional tax(PT) deductions from their gross earning that is reflected in the salary slip.
Please note that professional tax is different from income tax and it has to be paid before the due date or else the penalty will be levied by the tax authorities.
What is professional tax(PT)?
Professional tax is a direct tax levied by the state government to the businesses/companies registered within their state. This tax applies to the income earned through employment.
Since the professional tax has to be borne by the company or business owners, employers deduct PT from the employee’s earnings each month/annually. In India, the professional tax varies from state to state regime. Also, the professional tax amount can not exceed Rs. 2,500 annually.
Tax collections are the revenue sources for the Government and they collect in either of two forms; direct tax or indirect tax.
Income tax, corporation tax, property tax, inheritance tax, gift tax, etc are examples of direct tax whereas goods and service tax(GST), sales tax, excise tax, and value-added tax (VAT) are examples of indirect tax.
There are exemptions from the professional tax for
- Parents/guardians having mentally challenged or permanently disabled children
- Disabled person
- Senior citizens aged 65 and above
- Female members of Mahila Pradhan Kshetriya Bachat Yojana or Directors of small savings
- Serving members of army forces mentioned in Army Act 1950
Do you know some states do not levy professional tax? Check professional tax slab, rates in detail.
Difference Between monthly PT and annual PT
Monthly PT is filed every month whereas annual PT is filed on annual basis following the state Government’s regulation. For an employee, the professional tax amount should not exceed Rs. 2,500 annually.
Professional tax is a direct tax
Professional tax is a direct tax imposed and collected by the state Government. The due date for filing professional tax varies from state to state. A penalty is imposed if the due date is missed.
State-wise professional tax slab with the due date
Every state has its own tax slab, click here
What are the benefits of filing professional tax(PT)
- Duty as a responsible citizen
- Help development of the country
- Keep your credit score strong
- Since it is inevitable, file PT on time and be tension free
- On-time payment of tax help employers and employees maintain good tax history
How to file professional tax(PT) For Karnataka State
Procedure 1 – To pay Professional tax
Go to https://vat.kar.nic.in/epay/menu.aspx
Click on Karnataka Professional Tax (KPT)
Enter Your company’s Credentials and Click on the Next
On the next page verify the details entered and click submit
Note down CTD Reference Number and KhajaneII Reference Number
Click on the Payment link below and you will be redirected to the payment gateway page
Select your mode of payment and complete the payment transaction
Procedure 2 – To verify payment
Go to https://vat.kar.nic.in/epay/
Click on verify E-payment
Enter CTD Reference Number, TIN/RC and the amount will be fetched automatically, then click on the list
Click on verify
Procedure 3 – To Download the Receipt
Go to https://vat.kar.nic.in/epay/
Click on Print-e Challan
Enter CTD Reference Number, TIN/RC and the amount will be fetched automatically, then click on challan print
The challan will be downloaded for the respective CTD Ref.No, TIN/RC with Form 152
Karnataka Commercial Taxes Department Helpline number 1800 425 6300
Genuine websites
https://vat.kar.nic.in
https://pt.kar.nic.in
FAQ related to professional tax(PT)
1. Who all has to pay PT?
Every state has its own PT slab and all working professionals employed by employers has to pay PT either monthly or annually if their earning is taxable for PT.
2. What is the minimum salary for PT?
Every state has its own PT slab and all working professionals have to pay.
3. Does PT for a higher salary earning?
Yes in a few states.
4. What is the difference between monthly PT and annual PT?
Some states impose PT on monthly basis while some states annually. Monthly PT has to be filed monthly basis while annual PT is on annual basis.
5. What is the last date to file PT?
Every state has a different due date to file PT.
6. What if you miss the due date for PT
The penalty will be imposed upon missing the due date.
7. Who will file PT in the company?
Your company’s CA usually files PT.
8. What are the benefits of filing PT on time?
As responsible citizens, it is our duty to pay tax and on-time tax payment keeps our credit score healthy and tax history clean.
9. Can we check whether PT filed or not?
Go to https://vat.kar.nic.in/epay/
Click on verify E-payment
Enter CTD Reference Number, TIN/RC and the amount will be fetched automatically, then click on the list
Click on verify
10. How to Download the payment receipt for PT?
Go to https://vat.kar.nic.in/epay/
Click on Print-e Challan
Enter CTD Reference Number, TIN/RC and the amount will be fetched automatically, then click on challan print
The challan will be downloaded for the respective CTD Ref.No, TIN/RC with Form 152