Karnataka Professional Tax
In Karnataka, Profession Tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.
We assist our clients in obtaining:
- New registrations, amending existing registrations.
- Filing monthly and annual PT returns.
- Handling PT assessments / notices, etc.
Profession Tax shall be paid by every person exercising any profession or calling, or engaged in any trade, or holding any appointment (public or private) as specified in the Schedule to the Act.
Exemptions: No tax is payable by:
- Persons who have attained the age of sixty-five years.
- Persons holding any profession for less than 120 days in that year.
- Members of the armed forces.
- Persons with permanent disability of 40% or more.
- Parents of children with disability.
- Persons with a single child who have undergone sterilisation.
Two types of Professional Tax registration in Karnataka
Certificate of Enrollment (EC)
When is EC required?
Every person (whether natural or juridical) who is engaged in any profession, trade, calling or employment in the State of Karnataka, specified in the second column of the Schedule, shall obtain the Certificate of Enrollment (EC) from the Profession Tax Officer within thirty days from the date of commencement of business. This registration is mandatory for the business entity itself (i.e. for self-employed individuals and business entities) regardless of whether they employ any persons.
Amount & manner of payment:
- Persons holding an Enrollment Certificate shall pay tax every year before the 30th of April at the rates specified in Column 3 of the Schedule (also called Professional Tax Renewal).
- Annual PT liability is Rs. 2,500 for all classes of persons (as per Notification FD 09 CPT 2023 dated 13.07.2023).
- This fee is to be paid at the time of applying for the registration.
Certificate of Registration (RC / PTRC)
When is RC required?
Every employer (except an officer of the Government of Karnataka) is required to obtain a Certificate of Registration (RC / PTRC) under the Act. The RC is mandatory for every employer who employs any person in Karnataka, irrespective of salary level — the salary threshold determines only when tax is to be deducted, not when the RC must be obtained.
Liability to deduct and remit professional tax under the Karnataka PT Act arises when the employer employs any person whose salary is Rs. 25,000 or more per month. The employer must obtain the “Certificate of Registration (RC)” within thirty days of becoming liable to deduct the tax.
Amount & manner of payment:
- If the salary of an employee exceeds Rs. 25,000 per month, professional tax of Rs. 200 per month is to be deducted from the employee’s salary for 11 months and Rs. 300 for the month of February (i.e. Rs. 2,500 per annum in aggregate), and remitted to the government by the employer.
- It is the responsibility and obligation of the employer to deduct from the employee’s salary and remit to the government.
- Employees do not receive any individual registration number under Professional Tax.
Documents for Professional Tax registration
- Certificate of Incorporation, MOA / AOA, OR Partnership Deed, or any other statutory document.
- PAN of the entity.
- Rental agreement for place of business (agreement type: commercial letting). Also provide electricity bill.
- ID proof, address proof, Aadhaar Card and PAN of the Promoter / Director / Proprietor / Partner.
- Authorisation letter (format will be provided).
Other registrations we handle
Talk to our team.
A 30-minute call with our team — no deck, no follow-up email blasts. Just a read on whether we’re the right team to handle your Professional Tax registration.