Kerala Profession Tax Registration
What is Profession Tax?
Profession tax is a tax levied by the State Government on salaried individuals, working in government or non-government entities, or in the practice of any profession, including Chartered Accountants, Company Secretaries, Doctors, Lawyers, Engineers, consultants, artists, etc. or carry out some form of business.
This form of tax has been in practice for a long time and States have conferred the power of leveling the Tax under Clause (2) of Article 276.
What are the rates applicable for Profession Tax?
The Profession tax rates are based on the Income Slabs set by the respective State Governments. However, the maximum Profession Tax that may be levied by any State has been capped at INR 2500/-.
Is there any deduction applicable?
The total amount of profession tax paid during the year is allowed as a Deduction under the Income Tax Act, 1961.
Who has to deduct Profession Tax?
For Employees, Profession Tax is deducted by the employers from the salary of the salaried employees, and the same is deposited with the State Government.
For other individuals, they have to directly pay it to the Government or through their respective Local Bodies appointed to do so.
When to deduct and pay the Profession Tax?
The tax has to be collected and deposited on a half-yearly basis.
What are the consequences of failure to deduct and pay the Profession Tax?
In case, one fails to do so, a penalty and late fee would be applicable as per the state tax laws policy.
How to pay Profession Tax Online?
The organizations and Individuals can pay the profession tax through Online.
Do we need to register the portal to pay online?
Yes, we need to register on the portal to pay the profession tax online.
How the organization will update the employee details?
Once the organization registers the portal, the system will allow them to upload their existing employee details and their salary details as a single document (A structured CSV file template can be downloaded from the portal). The system will calculate the total profession tax and the employer can proceed with online payment.
How does the organization update their employee details, once it is uploaded?
The system gives necessary provisions for the employer to add or delete their employee details from time to time and manage their employee details.
How individual make the payment?
The individuals can register their profile with their profession details. Once the registration is completed based on their income slab, the system will calculate the profession tax amount and enable them to pay online.
Which are the modes of payment supported?
Payment is acceptable through debit card, credit card, and Net banking.
How do I get a tax-paid receipt for online payment?
Once, you make the online payment, the system will generate a receipt with your bank/card transaction details.
