Professional Tax in Kerala: Tax Slab, Payment, Due Dates & Applicability

Overview

Professional tax in Kerala is a state-imposed tax on salaried employees, professionals, and business owners in Kerala. There are 6 corporations, 86 municipalities, and other villages in Kerala. However, the tax slab for professional tax in Kerala may vary based on different acts such as the Kerala Panchayat Raj (Profession Tax) Rules 1996 and Kerala Municipalities Act 1994. Salaried employees, individuals who are self-employed, and business owners are all subject to the tax. The maximum amount of professional tax in Kerala is ₹1250 half-yearly. In this article, we will get a complete understanding of professional tax in Kerala, including its applicability, types, documents, registration and filing process, due date, and penalties. Whether you are a business or an individual, Bizfoc will help you navigate the complexities of professional tax from registration to filing.

Who is Responsible for Deducting Professional Tax in Kerala?

Below mentioned two categories are responsible for deducting and remitting professional tax in Kerala:

• Employers: As per the Kerala PT Act, any employers (organizations & businesses) who have salaried employees in their company or organization must deduct professional tax from the employees' salaries every month. This deduction amount is remitted to the State Government (Kerala Government). If the employer fails to deduct and remit professional tax to the government, they face penalties.
• Self-Employed Individuals: As per the Kerala PT Act, any individuals (professionals, traders, freelancers, business owners, etc.) who earn above the prescribed threshold are responsible for deducting professional tax in Kerala. For this, they must register themselves and obtain a PTEC (Professional Tax Enrollment Certificate) first. Professional Tax payments for self-employed persons in Kerala are mainly made yearly.

Different Types of Professional Tax Certificate

• Professional Tax Enrollment Certificate (PTEC): The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies, partnership firms, sole proprietors, and individual professionals. It is required to pay professional tax for both the business entity and its directors.
• Professional Tax Registration Certificate (PTRC): The Professional Tax Registration Certificate, commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee's salary and then deposit the same to the authorized state authority.

Exemptions for Professional Tax in Kerala

As per the Kerala Panchayat Raj (Professional Tax) Rules 1996 , the village Panchayat may exempt one or more classes from the profession tax liability: Provided that no class shall be exempt from the liability of tax if persons in the lowest class are responsible for paying taxes.

Documents Required for Professional Tax Registration in Kerala

• Photo
• PAN Card (Photocopy)
• Trade certificate (example - GST)
• Rent Agreement (Photocopy)
• Salary/wage statement of the employees
• Current bank account copy of the employer/organization/company
• MoU or Partnership deed
• Other relevant documents (if required)

Stepwise Process of Professional Tax Registration and Filing in Kerala

Process of Professional Tax Registration in Kerala

1. Visit the " Kerala Commercial Taxes Department’s Official Portal".
2. Select the appropriate option and fill it accurately with relevant details and information, including business or personal details, employee details (only for employers), profession, and income.
3. Attach all the required documents (listed above) to complete the registration process.
4. After form submission, once the government verifies all the details, they will issue a certificate.

Process of Professional Tax Filing in Kerala

1. Log in to the Kerala Commercial Taxes Department’s Official Portal using the credentials created during registration.
2. Select the relevant filing period (monthly for employers, annually for self-employed individuals).
3. Enter all the details such as income or employee salary details (for employers) and the corresponding professional tax payable. For employers, the tax will be automatically calculated based on salary slabs.
4. Generate the payment challan and make the payment using online banking or other available payment methods.
5. Submit the return online after completing the payment. Ensure that the return is filed before the due date to avoid penalties.

Professional Tax in Kerala Tax Slab

The complete tax slab of mentioned below:

Professional Tax in Kerala Due Dates

Professional Tax must be paid before:

• 31 August for the first half of the year (April - September).
• 28 February for the second half of the year (October - March).

Penalties with Respect to Professional Tax in Kerala

Why Choose BizFoc?

Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.

Conclusion

The aspect of professional tax in Kerala plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax, which is to be done by the employers of any profession or trade towards the respective legislation.

Frequently Asked Questions