Who is required to pay Professional Tax in India?

Professional Tax is applicable to salaried employees, employers, professionals, business owners, partners, directors, and other individuals earning income through trade, profession, or employment as per state laws.

What is the Professional Tax slab in Karnataka for FY 2026–27?

In Karnataka, employees earning up to ₹24,999 per month are exempt. Those earning ₹25,000 or more pay ₹200 per month from April to January and ₹300 in February, totaling ₹2,500 annually.

What is the due date for Professional Tax payment?

Employers must pay Professional Tax deducted from employees by the 20th of the following month. Annual returns, if applicable, must be filed by 30th April of the next financial year.

What are the penalties for late Professional Tax payment?

Late payment attracts interest at 1.25% per month. Late return filing can result in penalties starting from ₹1,000, and non-payment may lead to penalties up to 50% of the tax due.

Is Professional Tax applicable to business owners and freelancers?

Yes, business owners, freelancers, and professionals such as doctors, lawyers, and consultants must pay Professional Tax annually under PTEC registration based on state rules.

Professional Tax for FY 2026–27: Applicability, Slabs, Due Dates & Penalties

Professional Tax (PT) is a state-level tax that applies to individuals earning income from employment, profession, trade, or business in India. As the financial year 2026–27 begins, it is important to know:

Who is required to pay PT
The categories under which liability arises
The due dates for payment
Penalties for late or non-payment

Understanding these points will help ensure timely and smooth compliance with statutory requirements.

What is Professional Tax (PT)?

Professional Tax is levied by state governments under the authority of the Constitution of India. It applies to a wide range of individuals and entities, with a mm limit of ₹2,500 per person per year.

Who is Liable to Pay Professional Tax? (Categories of Persons)

The liability to pay Professional Tax is determined based on the class of persons defined under the respective state laws. Below is a structured overview:

Category	Class of Person	Applicability	Mode of Payment
Salaried Individuals	Employees (Private / Govt / Contract)	Applicable based on salary slabs	Deducted by Employer (PTRC)
Employers	Companies, LLPs, Firms	Required to deduct PT from employees	Monthly payment to Govt
Employers (Self Liability)	Company / Firm / LLP / Director	Liable for their own PT	Pay under PTEC
Professionals	CA, Doctors, Lawyers, Architects, Consultants	Covered under notified professional classes	Annual payment (PTEC)
Business Owners	Proprietors, Traders, Shopkeepers	Covered under trade/business class	Annual payment (PTEC)
Partners	Partners in Partnership Firms	Individually liable	Annual payment
Directors	Directors of Companies	Covered as separate class in many states	Annual payment
Contractors	Builders, Contractors, Developers	Classified under specific business class	Annual payment
Agents	Insurance Agents, Commission Agents	Covered under specific class	Annual payment
Transporters	Fleet owners, goods carriers	Covered under transport category	Annual payment
Entertainment Sector	Theatre/Cinema Owners	Covered under specific class	Annual payment

Professional Tax in Karnataka – Rules & Latest Amendment (2025 Update)

In Karnataka, Professional Tax (PT) is set by the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Employers are responsible for deducting this tax from employees’ salaries and paying it to the government.

A recent amendment, which takes effect on 1 April 2025, changes the tax structure to align with the annual limit of ₹2,500.

Professional Tax Slab in Karnataka (FY 2026–27)

Monthly Salary	PT Deduction (Monthly)	Annual PT
Up to ₹24,999	Nil	Nil
₹25,000 & above	₹200 (Apr–Jan)
	₹300 (February)	₹2,500

Month-wise PT Deduction Structure

Month	PT Amount (₹)
April – January	200 per month
February	300
March	Nil

Due Dates for Professional Tax Payment (PTRC & PTEC)

Particulars	Due Date	Remarks
Monthly PT Payment	20th of following month	For tax deducted from employees
Annual Return (if applicable)	30th April (next FY)	As per Karnataka PT rules

Mode of Payment for Professional Tax

Category	Responsibility	Mode
Employees	No direct payment	Deducted from salary
Employers	Deposit PT	Online payment through Commercial Taxes portal

Penalties for Late Payment & Non-Compliance

Nature of Default	Penalty / Interest
Late Payment	Interest @ 1.25% per month
Late Return Filing	₹1,000 or more (based on delay)
Non-Payment	Penalty up to 50% of tax due

Key Highlights of Professional Tax FY 2026–27

PT applicable only if salary ≥ ₹25,000/month
₹300 deduction only in February (latest amendment)
Annual cap: ₹2,500
Due date: 20th of next month
Employer is responsible for compliance

Conclusion: Ensure Timely Professional Tax Compliance

The revised Professional Tax structure in Karnataka facilitates adherence to statutory limits and simplifies the deduction process. Employers are required to ensure timely deduction and remittance, while employees should remain informed about the February adjustment.

Timely compliance with Professional Tax regulations mitigates the risk of penalties and supports efficient payroll management.