How the New Karnataka Professional Tax Amendment Could Save You Money Starting April 2023

Dear Patrons,

Greetings from Connect One Dynamic Synergies Private Limited. We wish to inform you that the Karnataka Government has promulgated the following changes in the remittance of Professional Tax under the Karnataka Tax on Professions, Trades, Callings, and Employments Act, 1976.

Karnataka Tax on Profession, Trades, Callings, and Employments (Amendment) Act, 2023

Effective 1st April 2023, the following changes will apply:

- Are you working in the State of Karnataka?
- Is your monthly gross wage less than or equal to Rs. 24,999/-?
- You will save Rs. 200 per month (Rs. 2400 per annum).
- NO Professional TAX is required for those whose monthly gross wages are less than or equal to Rs. 24,999/-.
- Do not deduct from April 2023 wages.
- Big relief to many middle-class workmen.
- The current threshold limit is up to Rs. 14,999/- - no PT.

The Amendment Gazette was notified on 14th March 2023. Other changes and reliefs are included in the amendment.

Thanks and Regards,
Connect One Compliance Team
Location: Bengaluru, India

Tags: professional tax, profession tax, gross wages, Karnataka government, Country-India, City-India-Bengaluru

The amendments to the Karnataka Tax on Professions, Trades, Callings, and Employments Act, 1976, bring significant relief to individuals working in Karnataka with monthly gross wages equal to or less than Rs. 24,999. Here are the key points regarding the changes:

📝 Effective from 1st April 2023, individuals meeting the criteria of monthly gross wages not exceeding Rs. 24,999 will save Rs. 200 per month, amounting to Rs. 2,400 annually.

📝 Those falling under this income bracket are exempt from paying Profession Tax, providing substantial financial relief.

📝 Employers are instructed not to deduct Profession Tax from the wages of eligible employees starting from April 2023.

📝 This amendment signifies a significant benefit for middle-class workers by increasing the threshold limit from Rs. 14,999 to Rs. 24,999.

📝 The Amendment Gazette, issued on 14th March 2023, outlines additional changes and reliefs introduced under the amended Act.

These changes aim to ease the financial burden on employees falling within the specified income range and provide a boost to the middle-class workforce in Karnataka. It is essential for employers and employees to be aware of these modifications to ensure compliance and take advantage of the updated regulations.