Understanding Professional Tax in Karnataka: How to Handle Yearly Bonuses and PT Code Renewals?

Dear Respected Ones,

Regarding Professional Tax Karnataka Clarification:

1. If we pay a yearly bonus at festival time on a separate statement without including it in the salary statement for that month, is this practice correct or incorrect? Also, is the yearly bonus subject to Professional Tax?

2. We have three units in Karnataka, and our payroll processing is centralized. We have a single PT Code for all branches. If we have a single code, do we pay a renewal/loyalty charge in April for all branches together, or do we need to pay separately for each unit?

Please suggest.

In Karnataka, the payment of a yearly bonus at festival time on a separate statement without including it in the salary statement for that month is considered correct practice. However, the yearly bonus is subject to Professional Tax. Regarding the PT Code renewal, if you have a single PT Code for all branches, you typically pay the renewal/loyalty charge in April for all branches together under that single code. It is not necessary to pay separately for each unit if you have a centralized payroll processing system.