Kerala Professional Tax

Government levies Kerala professional tax on salaried individuals working in Government or Non-Government entities or any profession, including Chartered Accounts and Lawyers or persons carrying out some form of business. Kerala Government has conferred the power of leveling professional tax under the Kerala Municipality Act, 1994. The professional tax rates are based on the Income slabs set by the State Government. The total professional tax paid during the year is allowed as a Deduction under the Income Tax Act. This article will look at the Kerala Professional Tax in detail. Know more about Professional Tax Registration and Compliance

Kerala Municipality Act

As per the Kerala Municipality Amended Act, 2015, it is mandatory for all employees who are drawing a half-yearly salary of more than Rs. 12,000 to pay Kerala professional tax. This tax is to be paid to the respective municipal corporation in which the company or firm is situated. The professional tax slab is mentioned in the below table.

Kerala Professional Tax Slab

The professional tax slab in Kerala is tabulated here:

S.No	Half Yearly Income	Half Yearly Professional Tax
1	Up to Rs.11999	Nil
2	Rs.12000 to Rs.17999	Rs.120
3	Rs.18000 to Rs.29999	Rs.180
4	Rs.30000 to Rs.44999	Rs.300
5	Rs.45000 to Rs.59999	Rs.450
6	Rs.60000 to Rs.74999	Rs.600
7	Rs.75000 to Rs.99999	Rs.750
8	Rs.100000 to Rs.124999	Rs.1000
9	Rs.125000 and above	Rs.1250

Eligibility Criteria For Kerala Professional Tax Registration

Kerala professional tax will be applied for the following entities:

Any company which transacts business in the municipal area for not less than sixty days has to pay professional tax.
Any company that transacts business outside the limit of the municipal area but has its head office from which its business is controlled within the municipal area for sixty days needs to pay PT.
Any person who exercises a profession, art, or calling or transacts business or holds any public or private appointment within the municipal area for not less than sixty days also must pay professional tax.
Any person who exercises a profession outside the municipal area but who resides within the municipal area for not less than sixty days is eligible for PT.
Any person transacts business outside the municipal area but has his head office or place from which his company is controlled within the municipal area for not less than sixty days.
Any person who resides in the municipal area for not less than sixty days in the aggregate and receives any income from investments will have to pay a half-yearly tax assessed.

Liability of Members of Firms to Kerala Professional Tax

The professional tax leviable from a firm or association may be levied from the agent of the firm or association,

Liability of Servants of Agents to Professional tax

If a company or person employs an agent or servant to transact business in a municipal area, such company or person will be deemed to transact business in the municipal area, and such servant or agent will be liable for professional tax payment in respect of the business of such company or person. In case of a company or person is the agent of another company or person, the former company or person will not be liable separately to the professional tax, on the same income as that of the principal.

Assessment of Kerala Professional Tax

Kerala professional tax assessment will be done every six months. The concerned corporation or municipality secretary during May and November in every half-year, by notice, requires every head of office or employer to assess every employee in his institution liable to professional tax and every self-drawing officer to remit the professional tax due following the Schedule to the said notice.