Keralites earning over Rs. 12,000/half-year? This guide explains Kerala's Professional Tax: who pays, how much, & how to register & pay online.
Professional Tax in Kerala: Overview
In Kerala, the government imposes a professional tax on individuals earning income through various means, including salaried jobs in government or private sectors, independent professions like chartered accountancy or law, and even business activities. This tax, authorized by the Kerala Municipality Act of 1994, is based on income slabs established by the state government. The good news? The total professional tax paid throughout the year can be deducted from your income tax, offering some relief. Let’s delve deeper into the specifics of the Kerala Professional Tax Registration.
Kerala Professional Tax Act
- Enacted in 1996, it levies a tax on individuals engaged in professions, trades, callings, and employment within Kerala.
- Administered by the Local Self Government Department (LSGD).
- Revenue generated is used to fund local development initiatives.
Professional Tax Slab Rate
| Half-yearly salary slab | Professional tax payable |
| Up to Rs. 12,000 | Nil |
| Rs. 12,001 to Rs. 25,000 | Rs. 200 |
| Rs. 25,001 and above | Rs. 300 |
Kerala Professional Tax Online Payment
- Visit the LSGD website: https://professiontax.lsgkerala.gov.in/
- Register as a new user or log in with your credentials.
- Select the “Payment” option.
- Enter your payment details and proceed to the payment gateway.
- Complete the payment using a debit card, credit card, net banking, or UPI.
- Download and save the payment receipt.
Due Dates
- First half-year (April-September): 31st October
- Second half-year (October-March): 30th April
Kerala Professional Tax Documents Required
For Registration
- Form 1: Application for Registration (downloadable from the LSGD website)
- Proof of identity: Aadhaar card, PAN card, or passport
- Proof of address: Aadhaar card, voter ID card, passport, or utility bill
- Business registration documents (if applicable): Certificate of Incorporation, Partnership Deed, etc.
For Payment
- Challan form (if paying offline): Obtainable from the LSGD office
Kerala Professional Tax Registration Procedure
- Obtain Form 1 from the LSGD website or office.
- Fill in the form completely and accurately.
- Attach required documents.
- Submit the form to the concerned LSGD office in person or through post.
- An acknowledgment with a registration number will be issued.
- Use this registration number for future payments and filings.
Kerala Professional Tax Late Payment Penalty
- 1% interest per month on the outstanding tax amount.
- Additional penalty of up to Rs. 2,000 may be imposed in certain cases.
Kerala Professional Tax Exemption
Individuals exempt from paying professional tax
- Persons earning less than Rs. 12,000 per half-year.
- Agricultural laborers.
- Persons with disabilities (as certified by a medical authority).
- Ex-servicemen.
- Women employees who are the sole breadwinners of their families.
FAQs on Kerala Professional Tax
Who should pay professional tax in Kerala?
Any individual earning a half-yearly salary exceeding Rs. 12,000 within the state is liable to pay professional tax. This includes salaried employees, self-employed professionals, and business owners.
How is professional tax calculated in Kerala?
Tax is calculated based on half-yearly income slabs: Up to Rs. 12,000: No tax Rs. 12,001 to Rs. 25,000: Rs. 200 Rs. 25,001 and above: Rs. 300
What is the professional tax limit for FY 2023-24 in Kerala?
The minimum income threshold for paying PT remains Rs. 12,000 per half-year.
Is professional tax applicable to self-employed individuals in Kerala?
Yes, self-employed individuals earning more than Rs. 12,000 per half-year must pay professional tax directly to the Local Self Government Department (LSGD).
Who are exempted from professional tax in Kerala?
Several categories are exempt, including: Individuals earning less than Rs. 12,000 per half-year Agricultural laborers Persons with disabilities Ex-servicemen Women employees who are the sole breadwinners of their families
Who falls under the purview of professional tax in Kerala?
Anyone engaged in professions, trades, callings, or employment within the state falls under the purview, including government employees, private employees, freelancers, and independent contractors.
Is professional tax deducted on a monthly basis in Kerala?
No, professional tax is levied and collected on a half-yearly basis, with due dates on 31st October for the first half and 30th April for the second half.
Is PT refundable in Kerala?
No, professional tax is not refundable once paid. However, it is deductible from your taxable income under the Income Tax Act.
Can I claim PT benefits in Kerala?
While there are no specific benefits associated with professional tax, the amount paid is deductible from your taxable income under the Income Tax Act, reducing your overall tax liability.
How can I save on professional tax in Kerala?
Legally, there are no ways to completely avoid PT if you fall under the liability criteria. However, claiming eligible deductions for your income tax can effectively reduce your overall tax burden.
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