As per the Kerala Municipal Act, 1994, it is mandatory to pay profession tax for all employees or who are drawing a half-yearly salary of more than Rs.12,000. The profession tax assessment is done by the concerned municipal authority on a half-yearly basis.
The profession tax rates are set by the Government of Kerala as per the income slabs of the individual. As per the Section 16 of the Income Tax Act, 1961, the amount paid by the salaried individual as profession tax can be claimed for the income tax deduction.
Similarly, profession tax is applicable for self-employed individuals having a half-yearly income of more than Rs.12,000. Though the slab rates are same as described below, the income tax deduction is not available for self-employed people.
The profession tax slab rates are as follows :
| Income Slab (half-yearly) | Profession Tax (payable half-yearly) |
| Upto Rs.11,999 | Nil |
| From Rs.12,000 to Rs.17,999 | Rs.120 |
| From Rs.18,000 to Rs. 29,999 | Rs.180 |
| From Rs.30,000 to Rs. 44,999 | Rs.300 |
| From Rs.45,000 to Rs. 59,999 | Rs.450 |
| From Rs.60,000 to Rs. 74,999 | Rs.600 |
| From Rs.75,000 to Rs. 99,999 | Rs.750 |
| From Rs.1,00,000 to Rs. 1,24,999 | Rs.1000 |
| From Rs.1,25,000 and above | Rs.1250 |
Due Date and Penalties
- The profession tax for the first half (April-September) of the year should be paid on or before August,31. Similarly, for the second half (October-March), the profession tax should be paid before the end of February. It is in general practice that the concerned municipal authority issues a notice to pay the profession tax within the stipulated time frame.
- In case, the profession tax payment gets delayed, you will be liable to pay a penalty @1% per month. Also, a fine of Rs.5000 will be charged for non-payment of profession tax.
Kerala Profession Tax Registration Process
Required Documents :
Here are the documents required by the respective municipality/corporation for registering an entity under the profession tax in Kerala.
- Memorandum of Association
- Articles of Association
- PAN Card
- Address Proof & Id Proof of the Employer
- Lease Agreement
- List of Employees with Salary Details
- List of Board of Directors
The head of the office needs to fill in the required information in the prescribed application form and submit it to the office of the secretary of the concerned municipality.
Following details need to be furnished in the application form :
- Name and Designation of the Employee
- Half-yearly income
- Amount of tax recovered through salary deductions
The entire process is available in offline mode only. Therefore, you need to physically visit the office of the corporation to pay the profession tax or to get registered. Once you pay it, you will be issued a receipt of payment in the name of the head of the office for the amount paid.