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

Updated on: May 23rd, 2024


11 min read

All salaried individuals are liable to pay professional tax in Kerala. If you reside in any of the municipal areas in Kerala, read this article for better insight into professional tax. 

Professional Tax in Kerala 

As per the Kerala Municipality Act 1994, professional tax is levied on every individual's income, including lawyers, Chartered Accountants, entrepreneurs, etc. However, the amount of tax payable varies depending on your income slab as set by the state government. According to the Income Tax Act 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction.

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 professional tax slab rate in Kerala is stated in the table below:

Half-Yearly Income Slab

Half-Yearly Professional Tax Rate

Up to Rs 11,999

Not Applicable

Rs 12,000 to Rs 17,999

Rs 120

Rs 18,000 to Rs 29,999

Rs 180 

Rs 30,000 to Rs 44,999

Rs 300

Rs 45,000 to Rs 59,999

Rs 450

Rs 60,000 to Rs 74,999

Rs 600

Rs 75,000 to Rs 99,999

Rs 750

Rs 1,00,000 to Rs 1,24,999

Rs 1,000

Rs 1,25,000 and above

Rs 1,250

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

Category of assessee

Application Form

Application of enrollment by employer

Form No 4

Application of enrollment by assessee (other than a person earning salary or wages)

Form No 7

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. 

Frequently Asked Questions

Is professional tax compulsory in Kerala?

Yes, payment of professional tax is compulsory in Kerala and some of the other states in India, such as Andhra Pradesh, Jharkhand, West Bengal, etc. Any individual in Kerala with a half-yearly income of Rs 12,000 is liable to pay this tax. 

How much is the professional tax in Kerala?

The professional tax amount varies depending on the individual’s income slab. However, the minimum professional tax rate is Rs 120, and it is applicable for individuals earning between Rs 12,000 and Rs 17,999 half yearly.

Who is eligible for professional tax in Kerala?

Every salaried individual, whether a Government or non-Government employee, needs to pay professional tax upon drawing a minimum half-yearly salary of Rs 12,000. However, the same applies to a self-employed individual as well.

Who is exempted from professional tax in Kerala?

Some individuals such as senior citizens aged above 65 years, permanently disabled, members of the army, air force and navy, etc., are exempted from professional tax liability.

How to pay professional tax in Kerala?

If you are a salaried employee, your employer will pay you the salary after deducting professional tax from it. However, self-employed individuals can pay the tax directly to the state government through the local municipality bodies or by registering their profile online.

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Quick Summary

Professional tax is mandatory for all salaried individuals in Kerala based on income slabs. Payment varies based on income and must be paid half-yearly. Exemptions apply for certain groups. Late payments incur penalties. Payment can be done online for select corporations.

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