How do I register my PT for employees?

Professional tax is a tax imposed by state governments on all professions and trades. Online professional tax registration does not imply it is only for individuals providing professional services like doctors, chartered accountants, lawyers, etc. This tax is collected from all individuals earning through any legitimate income source.

It must be paid by all individuals engaged in privately owned businesses. The business proprietor is responsible for deducting professional tax from employees and paying the required amount to the appropriate state government's professional taxation department.

Any amount paid as professional tax to the state government is deductible under Section 16 of the Income Tax Act, 1961.

Professional tax registration process

Professional Tax Registration in Karnataka must be obtained within 30 days of hiring staff for a business or, for professionals, within 30 days of starting their practice. The professional tax should be deducted from the salaries or wages paid to employees. The application for the Professional Registration Certificate must be submitted to the state tax department within 30 days of hiring staff. If the assessee has multiple places of work, separate applications must be submitted to each respective authority based on the jurisdiction of each workplace.

Who can get exemption from PT registration?

• Parents of children with a permanent or mental disability.

• Members of the armed forces, including auxiliary forces or reservists, serving in the state. Individuals over 65 years of age.

• Individuals with physically or visually challenged.

• Women exclusively working as agents under the Mahila Pradhan Kshetriya Bachat Yojana or as Directors of Small Savings.

• Parents or guardians of individuals with mentally challenged.

• Badli workers in the textile industry.

Due dates of professional tax registration in Karnataka

If an employer has more than 20 employees, they must make the payment within 15 days after the end of the month. However, if an employer has fewer than 20 employees, the payment is required quarterly, by the 15th of the month following the end of the quarter.

What are the documents are required for online PT registration in Karnataka?

• Certificate of Incorporation / LLP Agreement

• MOA and AOA

• PAN Card of the Company/LLP/Proprietor/Owner/Director

• NOC from the landlord

• Passport-sized photos of the Proprietor/Owner/Director

• Address and identity proof of the Proprietor/Owner/Director

• Details of employees and salaries paid

• Additional registrations and licenses

These are the above documents required for online professional tax registration in Karnataka.

Who is responsible to deduct the professional tax?

For employees, the employer is responsible for deducting and paying professional tax to the state government, subject to any monetary threshold specified by the respective state's Professional Tax Act.

An employer (including corporations, partnership firms, sole proprietorships, etc.) who also carries on a trade or profession must pay professional tax on their trade or profession, again subject to the monetary threshold specified by the state's Professional Tax Act. In such cases, the employer needs to register and obtain both a Professional Tax Registration Certificate to pay professional tax on their trade or profession, and a Professional Tax Enrolment Certificate to deduct the tax from their employees and remit it to the government. Additionally, separate registrations may be required for each office, depending on the state's legislation.

Freelancers without any employees must also register for professional tax, adhering to the monetary threshold specified by their state's legislation.

What is the validity period of the Professional Registration Certificate?

In many states, once issued, the Professional Tax Registration Certificate does not have an expiration date and remains valid as long as the business continues its operations. However, the certificate's validity can be subject to periodic renewal or compliance checks as mandated by state laws. Some states may require businesses to update or confirm their registration details annually, while others may have different timelines or requirements.

The validity period of a Professional Tax Registration Certificate (PTRC) can vary significantly depending on the state in which the business operates, as professional tax is a state-specific levy in India. Therefore, the rules and regulations, including the validity period of the PTRC, are governed by the respective state's Professional Tax Act.

In Karnataka, once the Professional Tax Registration Certificate is obtained, it is generally valid indefinitely, provided the employer remains compliant with the payment and filing requirements. The state mandates the filing of monthly or annual returns, depending on the number of employees, to maintain the certificate's validity.