Professional Tax Kerala: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

According to Article 276 of the Indian Constitution, every individual earning an income is liable to pay professional tax. Whether you earn your source of living from a job or self-employment, paying this tax is mandatory. 

However, the payable tax amount differs from one state to the other. Most Indian states have set their own tax rates for different income slabs. If you are a resident of New Delhi, read this article for a complete overview of professional tax in Kerala.

Professional Tax in Kerala 

The Kerala state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Kerala must pay professional tax according to the applicable income slab and professional tax rate.

 Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually. However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR. The professional tax amount in Kerala ranges between Rs.640-2,500 per annum.

Kerala Professional Tax Act

Professional tax came into being in 1996 with the enforcement of the Kerala State Tax on Professions, Trades, Callings, and Employment Act, commonly known as the Kerala Professional Tax Act. The Kerala Municipality Amendment Act of 2015 mandates that employees earning a half-yearly salary of more than Rs 12,000 are liable to pay professional tax. 

Professional Tax Applicability in Kerala 

As stated earlier, every individual earning a specific half-yearly income is eligible to pay professional tax (PT) in Kerala. Take a look at the points below to understand professional tax applicability in Kerala clearly:

• Companies operating their businesses in a municipal area in Kerala for sixty days and above are liable to pay professional tax.
• Any company outside the municipal area with its head office operating from the municipal area for more than sixty days needs to pay professional tax.
• Company owners who have resided within the municipal area for more than sixty years are liable to pay professional tax regardless of the company's location.
• Individuals holding appointments, exercising calling or art professions, and transacting business within the municipal area for more than sixty days must pay PT.
• If you live within the municipal area for more than sixty days, you must pay the PT regardless of the location of your workplace.
• If you are earning from investments in a municipal area besides residing, you are liable to pay the PT.

List Of Documents For Registration

• Incorporation certificate along with Memorandum of Association and Articles of Association
• PAN Card
• Lease Agreement
• Employer Address Proof, ID Proof and photos
• Employee list with salary details
• List of Board of Directors

Professional Tax Slab Rate in Kerala

The revised professional tax slab rate in Kerala, effective from October 1st, 2024, is stated in the table below:

Kerala Professional Tax Online Payment 

You can pay the professional tax online after registering your profile on the official portal. Your PT will be calculated after you provide the professional details for registration. However, the professional tax online payment option is currently available for five corporations only which include Thrissur, Thiruvananthapuram, Kannur, Kozhikode and Kollam.

Kerala Professional Tax Payment Due Date 

You are liable to pay the professional tax half yearly; the first half being April to September and the second half being October to March. For the first half, you should pay the tax by the 31st of August, and for the second half, by the 28th of February.

Kerala Professional Tax Late Payment Penalty 

As already mentioned, you need to pay the professional tax within the said dates. Any delay in payment will attract a penalty of 1% and for non-payment, the penalty amount can be as high as Rs 5,000.

Kerala Professional Tax Exemption 

As per the Kerala professional tax rule, some individuals are liable to get an exemption on professional tax. The individuals exempted from paying professional tax in Kerala are:

• Textile industry ‘Badli’ workers 
• Any mentally or permanently disabled child’s or individual’s parents
• Members of the Navy, Air Force, and Army (according to the Navy Act of 1957, Air Force Act of 1950, and Army Act of 1950)
• Individuals with permanent physical disabilities
• Senior citizens above 65 years of age
• Auxiliary force or reservist members serving in Kerala.
• Agents of the Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings

Various PT Forms

Final Word

Now that you know the intricacies of professional tax in Kerala, ensure to pay your tax on time. It will help you maintain a decent track record and avoid the hefty penalties imposed on late or non-payment of professional tax.