Profession Tax (PT) is a tax levied on the employment and Profession by respective State Government in India. In Karnataka, Profession Tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Under the provision of the Act, Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment, public or private as specified in the Schedule to the Act.
Professional Tax is payable by the following ‘PERSONS’ (Individuals and Business Entities) engaged in any Profession, trade, callings or employment in the State of Karnataka.
Every business is assumed as employer. Every business establishment must obtain the Professional Tax – Employer Registration / Enrolment Certificate (EC) within 30 days of commencement of business. The employer must pay professional tax of Rs.2500.00 to the Government annually.
Proprietors above 60 years of age are exempted from payment of annual fees.