Updated on: Mar 20th, 2023
|
10 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.
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.
Professional tax came into being in 1996 with the enforcement of the Kerala State Tax on Professions, Trades, Callings, and Employment Act. This act is 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.
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:
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 |
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.
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.
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 higher as Rs 5,000.
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:
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
Ans. 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.
Ans. 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.
Ans. 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.
Ans. 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.
Ans. 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.
Professional tax is mandatory in Kerala, based on income. Due dates, penalties, and exemptions are outlined. Various categories of individuals are exempt from professional tax in Kerala, and the tax slab rates are detailed. Online payment options and applicability conditions are discussed.