Legal Guide

Everything about Professional Tax Slab in Bangalore

by Bhavya Choudhary · 4 min read

professional tax slab bangalore

Individuals with an annual gross income below Rs. 2,50,000 are exempt from taxation. According to the Professional Tax Slab in Bangalore, all individuals with a monthly gross income of more than Rs. 15,000 are subject to Rs. 200 professional tax.

The state government collects professional tax on the gross income of government workers, private sector employees, and members of non-governmental organizations (NGOs).

According to Article 276, Clause 2 of the Indian Constitution, a professional tax is levied on individuals whose annual income exceeds the minimum income.

For each state, the Professional Tax Slab in Bangalore differed. A state may not, however, levy a professional tax of more than Rs. 2,500 per year. A state in India may levy a maximum annual professional tax of Rs. 2,500.

Professional Tax Slab in Bangalore 

As the professional tax levied by each state differs, the maximum Professional Tax Slab that Bangalore state may impose is Rs. 2,400.00. Additionally, the state may modify the tax rates annually.

The Professional Tax Slab in Bangalore for the 2018-2019 fiscal year is as follows:

Who pays Professional Tax in Bangalore?

  • According to the Professional Tax Slab in Bangalore, individuals and enterprises engaged in any government or private profession, trade, vocation, or occupation are obliged to pay professional tax.
  • Both salaried and self-employed individuals are required to pay the professional tax collected by the Bangalore State Government. Employers impose the professional tax on paid employees in accordance with the employment contract, while non-salaried professionals must pay it to municipal authorities authorized to collect the tax in accordance with the Bangalore Professional Tax Slab.
  • All professionals, including doctors, lawyers, and certified public accountants, are subject to a professional tax in Bangalore. Any individual who has engaged in a labor contract and earned a wage must pay professional tax.

The Professional Tax Slab in Bangalore applies to the following categories:

  • In FY18-19, all salaried employees in Bangalore earning above Rs. 15,000 would be liable to a Professional Tax Slab. According to the Professional Tax Slab in Bangalore, the employer would deduct the professional tax from the salary of the employees.
  • Sole owner 
  • Partnership enterprises 
  • Limited Liability Partnership 
  • Corporations 
  • Hindu undivided family (HUF) 
  • Firms 
  • Company and other Corporate entities 
  • Society 
  • Club or Association

How to Pay Professional Tax in Bangalore?

  • Employers must deduct professional tax from the monthly earnings of salaried individuals in accordance with the Professional Tax Slab in Bangalore.
  • This is deposited to the relevant state body on behalf of the salaried employee.
  • Self-employed individuals and professionals who do not receive a salary, i.e., those who are not employed by a company and work independently, are required to pay professional tax, which can be paid by contacting tax offices established in the state to collect professional tax in accordance with the Professional Tax Slab in Bangalore.
  • Employers are required to register with the state government of Bangalore in compliance with professional tax rules.

Here are the two forms of registration:

  • Professional tax (PT) employer registration 
  • Professional tax (PT) employee registration

Employer Registration for Professional Tax in Bangalore

  • Employer registration is necessary for all businesses and organizations. This registration is mandatory regardless of the workforce size of the company.
  • The registration certificate is the Profession Tax Office’s issued certificate of registration.
  • This document contains the employer’s tax liability and the due date for payment.
  • There may be a penalty for failing to pay professional taxes by the deadline.

The Professional Tax Slab in Bangalore is based on the number of hired persons. Employer tax rates imposed by the Bangalore Shops and Commercial Establishments Act of 1961 are as follows:

  • There are no tax difficulties if there are no employees.
  • In between 1-5 employees – INR 1000.
  • Five to ten employees: INR 1,500
  • After 10 employees: 2,500 INR

Registration of Employees for Tax Purposes

The employer deducts the employee’s professional tax in accordance with the Professional Tax Slab in Bangalore. Employers are required to get a Certificate of Registration.

Monthly returns

  • Employers must pay taxes on behalf of their employees in line with the Professional Tax Slab in Bangalore.
  • According to the Professional Tax Slab in Bangalore, the professional tax for employees with a gross monthly salary of Rs. 15,000 or more is Rs. 200 per month. 
  • This tax must be paid on their behalf by their employers.
  • Tax returns must be filed within 20 days after the end of the month for which taxes were deducted from an employee’s paycheck.
  • Noncompliance is punishable by a monthly fine of Rs. 250.

Annual returns

  • Employers and businesses with an Enrollment Certificate must pay their annual taxes by the 30th of April, depending on the prescribed tax rate, and file annual reports within sixty days after the end of the fiscal year.
  • The documents must include all information on each employee’s wage and the professional tax withheld.

Professional tax in Bangalore Electronic Payment

  • It is simple and may be done online. Using a website called e-PRERNA, the state government of Bangalore has made it easy to pay taxes and submit tax returns. This online portal provides several services, including submission of enrollment applications, e-payment of taxes, and return filing, among others.
  • Taxpayers can also generate the same certificate online.

Penalty for Late Payment of Professional tax in Bangalore

  • In the case of a professional tax payment delay, the government of Bangalore will apply a 1.25 percent per month penalty.
  • However, the maximum state penalty for late payment of the total amount of unpaid professional tax is fifty percent.
  • It is thus advised not to fail to pay professional taxes on time or to pay them late and to contact an online attorney.

Conclusion

Professional Tax in India, unlike Income Tax, is a direct tax administered by the states and not the national government. Since Union territories are under the jurisdiction of the Central Government, they are exempt from the professional tax in India.

Thus, none of the nine union areas are required to contribute. In addition, the majority of these enterprises are tiny and contribute little to the economy; hence, they are exempt from this tax. For additional information about the Professional Tax Slab in Bangalore, visit a lawyer online immediately.

Payment of Professional tax is necessary if you reside in a state where professional tax is levied. To know more about Professional Tax Slab in Bangalore, consult a tax lawyer now.

Bhavya Choudhary

Written by

Bhavya Choudhary

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