Professional tax in Kerala is imposed on professions, trades, callings, and employment. This Professional Tax in Kerala is paid on half yearly basis. The due date for the first half year is to be paid before 31st August. However, the due date for the second half year is to be paid on or before 28th February. Thus, Professional tax slabs differ for panchayats and corporations. As per the Kerala Municipal Act, employees drawing a salary of more than 12000 must pay professional tax.
This professional tax is set by the Kerala Government on the individual's income slabs. This professional tax in Kerala is paid by salaried employees and can be claimed in Income Tax for income deduction.
Revenue Generation
Professional tax is a vital source of revenue for state government. This professional tax helps public welfare schemes, infrastructural development, and other essential services. Due to the collection of taxes, various schemes of government can be implemented for the welfare of people.
Compliance Requirements
The professional tax is required to be paid by both employer and employee as per professional tax regulations. Non-compliance will result in penalties and legal consequences. Thus, regular payment of professional tax will ensure complete adherence to state tax laws.
Compulsory for Professions
This professional tax applies to several professionals like lawyers, doctors, chartered accountants, and other professionals on their income levels. This professional tax ensures that high-earning professionals are contributing to the state's development and revenue.
Tax Deductible
The amount paid by salaried employees and professionals can be deductible from taxable income while filing an income tax return. This professional tax is paid during the year and is deductible in the Income Tax Act.
Kerala Professional Tax Slab
Due dates
The due dates for payment of half-yearly tax would be on or before August 31. Consequently, for the second half-yearly would be on or before the end of February. However, in case of delay in payment of tax is liable to pay penalty @1% per month. In case of non-payment of professional tax Rs. 5000 will be charged.
Registration Process
The following are the documents required for registering an entity under the professional tax act.
Importance of Professional Tax
The professional Tax is due for every company that is active in the records of the municipality for more than 60 days. However, the companies that are registered outside the limit of Kerala Municipality but have an office in Kerala for more than 60 days must pay Professional tax. The professional tax applies to the individuals and assesses who have been living or in office within the municipal boundaries for more than 60 days.
Exempted Assesses:
Several individuals are exempt from paying professional tax as defined below.
1. How to make a professional tax payment?
Ans: The online professional tax can be paid by individuals and organizations in Kerala. The taxpayer must register their profile along with contact details and professional information. The professional tax is payable based on the income slab after successful registration.
2. Who is responsible for making payment of professional tax in Kerala?
Ans: The professional tax is divided into two categories salaried and business individuals or organizations.
Conclusion
This Kerala professional tax is paid to the Kerala Government by salaried and non-salaried workers, contractors, organizations, etc. The professional tax is required to be paid for salaried persons whose income is more than 12000 per half year. Individuals and organizations must submit their professional taxes online more.
However, the application form for registration in professional tax can be made in offline mode. This professional tax can be claimed in income deduction. This professional tax collected by the state is commonly used for funding various government schemes, healthcare, and welfare programs.
This professional tax is set by the Kerala Government on the individual's income slabs. This professional tax in Kerala is paid by salaried employees and can be claimed in Income Tax for income deduction.
Revenue Generation
Professional tax is a vital source of revenue for state government. This professional tax helps public welfare schemes, infrastructural development, and other essential services. Due to the collection of taxes, various schemes of government can be implemented for the welfare of people.
Compliance Requirements
The professional tax is required to be paid by both employer and employee as per professional tax regulations. Non-compliance will result in penalties and legal consequences. Thus, regular payment of professional tax will ensure complete adherence to state tax laws.
Compulsory for Professions
This professional tax applies to several professionals like lawyers, doctors, chartered accountants, and other professionals on their income levels. This professional tax ensures that high-earning professionals are contributing to the state's development and revenue.
Tax Deductible
The amount paid by salaried employees and professionals can be deductible from taxable income while filing an income tax return. This professional tax is paid during the year and is deductible in the Income Tax Act.
Kerala Professional Tax Slab
| Income Slab (Half-yearly) | Professional Tax Payable |
| Upto Rs. 11,999 | Nil |
| From Rs. 12,000 to Rs.17,999 | Rs.120 |
| From Rs. 18,000 to Rs.29,999 | Rs.180 |
| From Rs. 30,000 to Rs.44,999 | Rs.300 |
| From Rs. 45,000 to Rs.59,999 | Rs.450 |
| From Rs. 60,000 to Rs.74,999 | Rs.600 |
| From Rs. 75,000 to Rs.99,999 | Rs.750 |
| From Rs. 100,000 to Rs.124,999 | Rs.1000 |
| From Rs. 1250,000 and above | Rs.1250 |
Due dates
The due dates for payment of half-yearly tax would be on or before August 31. Consequently, for the second half-yearly would be on or before the end of February. However, in case of delay in payment of tax is liable to pay penalty @1% per month. In case of non-payment of professional tax Rs. 5000 will be charged.
Registration Process
The following are the documents required for registering an entity under the professional tax act.
- MOA (Memorandum of Association)
- AOA (Article of Association)
- PAN card
- Lease Agreement
- List of Employees with their salary details
- List of Board of Directors
Importance of Professional Tax
The professional Tax is due for every company that is active in the records of the municipality for more than 60 days. However, the companies that are registered outside the limit of Kerala Municipality but have an office in Kerala for more than 60 days must pay Professional tax. The professional tax applies to the individuals and assesses who have been living or in office within the municipal boundaries for more than 60 days.
Exempted Assesses:
Several individuals are exempt from paying professional tax as defined below.
- The professional tax who are more than 65 years of age are exempt from Professional Tax.
- The Badli workers belong to the textile industry.
- The permanent physically challenged persons.
- The parents or guardians of persons with mental disability.
1. How to make a professional tax payment?
Ans: The online professional tax can be paid by individuals and organizations in Kerala. The taxpayer must register their profile along with contact details and professional information. The professional tax is payable based on the income slab after successful registration.
2. Who is responsible for making payment of professional tax in Kerala?
Ans: The professional tax is divided into two categories salaried and business individuals or organizations.
Conclusion
This Kerala professional tax is paid to the Kerala Government by salaried and non-salaried workers, contractors, organizations, etc. The professional tax is required to be paid for salaried persons whose income is more than 12000 per half year. Individuals and organizations must submit their professional taxes online more.
However, the application form for registration in professional tax can be made in offline mode. This professional tax can be claimed in income deduction. This professional tax collected by the state is commonly used for funding various government schemes, healthcare, and welfare programs.
