Understanding Professional Tax in Bangalore: What Employers Need to Know About Deductions and Registration

We are planning to open a branch in Bangalore, which falls under the Karnataka Shop Establishment Act. Additionally, Professional Tax is applicable there. I want to understand the entire process of Professional Tax from the beginning (registration) to the end. If the salary is more than ₹15,000, then ₹200 is applicable.

Professional Tax Deduction

Is the ₹200 deduction only from the employee's side, or is there any amount that the employer must contribute as well? Can we include the ₹200 as part of the CTC Breakup?

Process for Registration

Regards,
Kunal Kumar

Kindly find the below PT Slabs for Bangalore for your ready reference.

Average Half-Yearly Income and Profession Tax Slabs

1. Up to Rs. 21,000/- - NIL
2. Rs. 21,001/- to Rs. 30,000/- - ₹100/-
3. Rs. 30,001/- to Rs. 45,000/- - ₹235/-
4. Rs. 45,001/- to Rs. 60,000/- - ₹510/-
5. Rs. 60,001/- to Rs. 75,000/- - ₹760/-
6. Rs. 75,001/- and above - ₹1,095/-

PT is always deducted from the employee's salary as it is the employee's contribution and not the employer's. You can show this deduction as Gross - PT (like PF, ESI, MLWF contributions).

Regards,
Ms. Mrunal Tambe

Difference Between Professional Tax and TDS

What is the difference between professional tax and TDS? Also, what are the slabs for both taxes?

Regards,
Hansa Dutt

The slab rate mentioned by you pertaining to Tamil Nadu is for Tamil Nadu rates, not for Bangalore. In India, Tamil Nadu & Kerala only permit remitting the PT once every six months to the department. Other states require remitting PT on a monthly basis to the department.

Registration Requirement

Aside to Kunal, you need to register if your quantum of members is more than 20 in that branch. Otherwise, there is no requirement to register under the establishment.

Regards,
Ashok.

It's great, and thanks for this update. As you said, registration is not required as we are just opening with 8 sitters there in Bangalore. Now my question is: do we have to deposit PT, and how much for Bangalore employees earning more than 15,000 per month? It will be very helpful for me if you could briefly explain the process.

Regards,
Kunal Kumar

For Bangalore, you should register for Professional Tax (PT). The process involves registering online using the URL pt.kar.nic.in and then submitting the same at the PT office with the respective supporting documents.

Tariff Details

The tariff is as follows:
- For income between ₹10,000 and ₹15,000, the tax rate is ₹150.
- For income above ₹15,000, the tax rate is ₹200.
- Monthly payments should be made accordingly.

Dear All,

Thanks for sharing such valuable information on professional tax. I would like to add a few questions from my side for a solution: I know that PT is imposed at the state level and is deducted by the employer each month and sent to the concerned municipal corporation.

Benefits of Paying Professional Tax

Now, my question is, what is the benefit of paying professional tax and the process to deposit the amount to the municipal corporation?

Applicability of Professional Tax in Delhi

Also, is PT applicable in Delhi? Please give your feedback on this too.

Regards,