The two registrations that apply
Professional Tax is a state-level tax authorised by Article 276 of the Constitution of India, levied on individuals earning salaries or carrying on professions, trades, callings or employment. Each state has its own Profession Tax Act and slab structure. In Karnataka, the levy is governed by the Karnataka Tax on Professions, Trades, Callings and Employments Act 1976.
Two distinct registrations apply for a Bengaluru-based business:
- Employer PT registration (PTRC) — registers the employer to deduct PT from employee salaries and remit.
- Employer PT enrolment (PTEC) — registers the employer / proprietor / partner / director as a professional, with their own PT liability.
Employee PT slabs & employer PTEC
Employee PT slabs (deducted by employer):
- Monthly salary up to ₹25,000 — nil.
- Monthly salary ₹25,000+ — ₹200 per month.
Employer PT enrolment fee (PTEC): typically ₹2,500 per year, payable by 30 April. Different categories of professionals (CAs, doctors, lawyers, contractors) have different PT enrolment slabs.
Acts, rules, forms and due dates
The relevant references:
- Karnataka Tax on Professions, Trades, Callings and Employments Act 1976.
- Karnataka Tax on Professions Rules 1976.
- Form 4-A — monthly remittance return.
- Form 5 — annual return.
- Form 9 — PTEC payment evidence.
- Due dates: 20th of the following month for monthly PTRC; 30 April for annual PTEC.
How we run monthly PT compliance
- Initial enrolment — PTRC and PTEC registrations done together for new businesses.
- Monthly payroll integration — PT deduction logic embedded in the payroll cycle.
- Monthly Form 4-A filing by the 20th of the following month, on the Karnataka commercial tax portal.
- PTEC annual remittance by 30 April for the financial year.
- Annual Form 5 employer return.
- Reconciliation against payroll for any quarter-end employee additions / exits / status changes.
- Notice handling — we respond to short-payment / non-payment notices and reconcile against challans.
What you’ll need to share
- Karnataka GSTIN, PAN and address proof of the business.
- Director / partner / proprietor KYC for PTEC enrolment.
- Employee master with monthly gross salary.
- Joining and exit dates for the period.
- Bank account for online challan payment.
- Existing PTRC / PTEC numbers (for transitions).
How long & how we charge
New PTRC + PTEC enrolment is a 5–10 working day process. Monthly compliance runs on a fixed-fee retainer covering Form 4-A filing, payment, and reconciliation. PTEC annual fee is paid as a pass-through cost.
Common questions on PT compliance
Is PT applicable in every state?
No. About 17 states levy PT — including Karnataka, Maharashtra, Tamil Nadu, West Bengal, Telangana, Andhra Pradesh, Kerala, Madhya Pradesh, Gujarat, Bihar, Odisha, Chhattisgarh, Tripura. States like Delhi, Haryana, Uttar Pradesh, Rajasthan, Punjab and Chandigarh do not levy PT.
Is the employer’s PTEC and PTRC the same number?
No. Two separate registrations, two separate certificate numbers. Both are needed for an employer.
Does PT apply to consultants on contract?
PT on consultants depends on whether the relationship is salary or professional fee. Salary attracts PTRC; professional fee earners pay their own PT under their own enrolment. We advise on the structure when consulting agreements are drafted.
What’s the penalty for missed PT remittance?
Interest at 1.25% per month, plus penalty up to 50% of the tax due. Notices arrive within 6–12 months of default. Cure is usually 100% of tax + interest if filed before notice.
Talk to a partner.
A 30-minute call with a partner — no deck, no follow-up email blasts. Just a read on whether we’re the right team to handle your Professional Tax compliance.