The Karnataka Tax on Profession, Trades, Callings and Employment Act,1976

Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. This 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.

Tax Schedule - Rates of tax on professions, trades, callings and employments

S. No.    Class of Persons        Rate of tax  
1  Salary or wage earners whose salary or wage or both, as the case
may be, for a month is Rs. 25,000-00 and above
Rs. 200-00 per
month
2 Persons registered or liable to be registered under the Karnataka
Goods and Services Act, 2017
Rs. 2,500-00 per
annum
3 Self-employed persons engaged in Professions, Trades, Callings
and Employments, with a standing in profession for more than 2
years, including Legal practitioners, Consultants, Agents,
Chartered Accountants and Actuaries, Engineers, Health care
professionals, Estate Agents or Brokers, Beauty parlours, dry
cleaners and interior decorators, Journalists and Advertisement
agencies, providing entertainment using Dish Antenna Cable TV,
Computer Institutes selling time, Computer Training Institutes /
Driving Institutes / Technical Training Institutes, Astrologers,
Astropalmists, Numerologists, Vaastu consultants and Faith
healers.
 Rs. 2,500-00 per
annum
4 Horse owners and the trainers, Jockeys, Directors, Actors and
Actresses (Excluding Junior Artists), Owners of Oil Pumps and
Service stations, gas stations, electric charging stations, Owners of
Nursing homes, Hospitals, Diagnostic centres, Clinical laboratories
and X-ray clinics, other than those run by the Central Government,
State Government and local bodies, Owners of Gymnasium and
Fitness centres.
Rs. 2,500-00 per
annum
5 Educational Institutions and Tutorial Colleges or Institutes other
than those run by the Central Government, State Government and
local bodies.
Rs. 2,500-00 per
annum
6 Employers of establishments defined under the Karnataka Shops
and Commercial Establishments Act, 1961, employing more than
five employees.
Rs. 2,500-00 per
annum
7 Licensed dealers of liquors, Money lenders licensed under the
Karnataka Money Lenders’ Act, 1961, Individuals or institutions
conducting chit funds
Rs. 2,500-00 per
annum
8 Owners of transport vehicles (other than auto rickshaws) run on
their own or through others under permits granted under the Motor
Vehicles Act, 1988; Goods transport agencies (GTA) and
Transport contractors including forwarding and clearing agents.
Explanation- For the purposes of this entry Goods Transport
Agency or GTA means any person who provides service in relation
to transport of goods by road and issues consignment note, by
whatever name called.
Rs. 2,500-00 per
annum
9 Cooperative Societies registered under the Karnataka Cooperative
Societies Act and engaged in any profession, trade or calling. 
Rs. 2,500-00 per
annum
10 Companies registered under the Companies Act, 1956 and engaged
in any profession, trade or calling; Banking companies as defined
in the Banking Regulations Act, 1949
Explanation.- For the purpose of this entry, ‘banking companies’
shall include any bank whose operations are governed by the
provisions of the Banking Regulation Act,1949 (Central Act 10 of
1949)
Rs. 2,500-00 per
annum
11 Persons other than those mentioned in any of the preceding entries
who are engaged in any profession, trade, calling or employment
and who are paying tax under the Income Tax Act, 1961 (Central
Act 43 of 1961)
Rs. 2,500-00 per
annum
12 Persons other than those mentioned in any of the preceding entries
who are engaged in any profession, trade, calling or employment
with a minimum of two years of standing and who are not
exempted by Notification issued by the State Government from
time to time.
Rs. 2,500-00 per
annum

                                                

  • Explanation I. – Notwithstanding anything in this Schedule, where a person is covered by more than one entry in the Schedule, tax is payable under any one of such entries.
  • Explanation II. – For the purposes of determining the liability of tax, in terms of Serial No. 4 in this Schedule, the higher number of workers and / or employees and / or employees at any time during the year shall be reckoned as the basis.
  • Explanation III. – For the purposes of this Schedule where any asset or business is held on lease by a lessee, such lessee shall be deemed to be the person liable under the Act.
  • Explanation IV. – No tax shall be levied under this Act on any partner of a firm which is engaged in any profession, trade or calling if the tax is paid by such firm.
  • Explanation V. – Notwithstanding anything contained in the Schedule, every additional place of a person enumerated in any item of the Schedule shall be deemed to be a separate person for the purpose of levy of Profession tax specified in the Schedule and nothing in this explanation shall be applicable in case of additional places of business which are exclusively used as godown for storing goods.”

- as 30 June 2023

Compliances

Applicability

Any person who is engaged in any profession, trade, calling, or employment in the State of Karnataka and includes:

  • Hindu Undivided Family (HUF)
  • Firm
  • Company
  • Corporations
  • Other Corporate Bodies
  • Any Society
  • Any Club or Association
Compliance Calendar
There are so many HR compliances to be taken care of every month, throughout the year. Check out our comprehensive calendar to stay on top of your game!
Related Acts

More Notifications

More and more growing companies are using greytHR.
Take a demo and find out why

  • HR & Payroll Administration
  • What is HRMS?
  • What is Payroll?
  • What is Statutory Compliance?
  • Guide to Leave Management
  • Guide to Attendance Management
  • Holiday Lists 2023
  • Holiday Lists 2024
  • Product
  • HR Software
  • Payroll Software
  • Leave Management System
  • Attendance Management System
  • Performance Management System
  • Employee Self Service
  • greytHR Service Status
greytHR-logo
GDPR Compliant certification badge
Soc2 certification badge
ISO Certification Badge
© 2024 Greytip Software Pvt. Ltd.
Privacy PolicyTerms of Use
India