Professional tax is a tax levied on individuals on the working class - salaried individuals, working in Government or Non-Government entities or of any profession. This also includes Chartered Accountants/Lawyers or persons carrying out some form of business.
The power of levelling professional tax stems from Kerala Municipality Act, 1994, under the Kerala Government. As per the Kerala Municipality Amendment Act, 2015, it is mandatory for all individuals who are drawing a half-yearly salary of more than Rs. 12,000 to pay Kerala professional tax. Also, as per the Section 16 of the Income Tax Act, 1961, the amount paid by the salaried individual as profession tax can be claimed for income tax deduction.
Professional tax rates are based on the Income slabs set by the state government. The tax slabs are mentioned below:
| Half Yearly Income | Half Yearly Professional Tax |
|---|---|
| Up to Rs. 11999 | Nil |
| Rs. 12000 to Rs. 17999 | Rs. 120 |
| Rs. 18000 to Rs. 29999 | Rs. 180 |
| Rs. 30000 to Rs. 44999 | Rs. 300 |
| Rs. 45000 to Rs. 59999 | Rs. 450 |
| Rs. 60000 to Rs. 74999 | Rs. 600 |
| Rs. 75000 to Rs. 99999 | Rs. 750 |
| Rs. 100000 to Rs. 124999 | Rs. 1000 |
| Rs. 125000 and above | Rs. 1250 |
The following entities are eligible for professional tax registration:
Assessment of professional tax in Kerala is done for every 6 months. The assessment takes place every May and November every half-year. As per the procedure, every head of office or employer is required to assess every employee in his/her institution liable to professional tax and every self-drawing officer to remit the professional tax due following the schedule. Details consists of the names of all the persons employed as officers along with a statement of the salary or income of such employed persons.
For calculation of salary for professional tax, the following elements are taken into consideration:
The documents required for Kerala Professional Tax Registration are:
The following process needs to be followed for Kerala Professional Tax Registration:
The application form for Kerala Professional Tax has to be obtained from the concerned Municipal Corporation. In this case, it is the Thiruvananthapuram Municipality Corporation.
Any delayed payment will attract a penalty of 1% per month. Post non-payment, the profession tax will charge a fine of Rs. 5000.
Ans: Dearness Allowance is a cost of living adjustment allowance paid to government employees, public sector employees and pensioners.
Ans: The official website of Kerala Professional tax is lsgkerala.gov.in/
Ans: A certificate of recovery is a document issued by the municipal authority which states that Kerala Professional Tax has been paid successfully.
