- HOME
- Compliance
- Professional tax in Kerala: Slab, calculation, and due date
Professional tax in Kerala: Slab, calculation, and due date
In India, individuals who earn a regular income through their professions, trades, or employments are subject to professional tax imposed by state governments. This tax serves as a source of revenue for the state and contributes to the development of its infrastructure. In the state of Kerala, the Kerala Panchayat Raj (Profession Tax) Rules govern the process of professional tax.
By the end of this article, you will be able to understand the applicability, rules, registration process, deduction cycle, and payment methods of professional tax in Kerala.
Kerala professional tax rules (Panchayat Raj)
In 1996, the Kerala Panchayat Raj (Profession Tax) Rules introduced professional tax in the state. According to these rules, individuals who work, hold office, or receive an income through any type of profession are liable to pay professional tax to the state government. The tax amount depends on the individual's income and has a maximum yearly limit of ₹ 2,500.
Employers in Kerala are responsible for calculating their employees' tax liability based on the applicable rates. They need to deduct the corresponding amount from their employees' salaries and submit it to the state's Commercial Taxes Department.
For self-employed individuals, it is their responsibility to accurately calculate the tax they owe and ensure prompt payment to the government.
Applicability of professional tax in Kerala
The following individuals and entities must pay professional tax in Kerala.
- Salaried individuals: All employees working in any organization, whether in the private sector or employed by the state government, central government, or panchayats.
- Self-employed individuals: Freelancers and individuals engaged in any trade, profession, or occupation, excluding those who earn wages on an occasional basis.
- Entities: Firms, corporate bodies, and Hindu Undivided Families that conduct business in any municipal area for a period of 60 days or more.
- Business owners: Those who are residing in any municipal area for 60 days or more, regardless of their business location.
- Employers: Those responsible for disbursing employee salaries within an organization, including business owners, managers, and other stakeholders, must deduct the appropriate tax amounts from their employees' salaries and submit them on their behalf.
Registering businesses for professional tax in Kerala
Employers, secretaries, managers, or any person responsible for collecting professional tax are required to register their business for professional tax. The registration process can be completed online through the Commercial Taxes website.
Once the application is received, the assessing authority will register the business within one day and issue a registration number, along with a login ID and password.
Documents required for registering
- PAN card, Aadhar card, and passport size photographs of the applicant.
- Articles of association, or certificate of incorporation, if applicable.
- Address proof of the business, such as a rental agreement.
- A list of the board of directors of the company, if applicable.
- A list of employees working in the organization and their respective salaries.
After collecting all the required documents, you can proceed with the online registration for professional tax.
Kerala professional tax registration online
- Visit the official website of professional tax in Kerala.
- Click on the Click here to Register button located on the homepage.
- Choose the appropriate type of registration (Individual or Organization) on the subsequent Tax Payer Registration page.
- Fill out the online registration form with accurate details, including your organization's address, the type of business you operate, your email address, and mobile number.
- Upload the required documents, such as PAN card, Aadhar card, address proof, and any other specified supporting documents.
- Double-check all the provided information and click Submit.
- Upon successful submission, you will receive a registration number along with a login ID and password.
- Make a note of the registration number and login credentials for future reference.
For additional information, refer to the FAQ document prepared by the state government.
Kerala professional tax slab rates
For salaried individuals
| Half-yearly gross salary | Half-yearly tax amount |
| Up to ₹ 12,000 | Nil |
| From ₹ 12,000 to ₹ 17,999 | ₹ 120 |
| From ₹ 18,000 to ₹ 29,999 | ₹ 180 |
| From ₹ 30,000 to ₹ 44,999 | ₹ 300 |
| From ₹ 45,000 to ₹ 59,999 | ₹ 450 |
| From ₹ 60,000 to ₹ 74,999 | ₹ 600 |
| From ₹ 75,000 to ₹ 99,999 | ₹ 750 |
| From ₹ 1,00,000 to ₹ 1,24,999 | ₹ 1,000 |
| Above ₹ 1,25,000 | ₹ 1,250 |
For self-employed professionals and businesses
| Tax assess category | Half-yearly tax amount |
| Advocates, private doctors, paramedical experts, and others engaged in similar professions | ₹ 1,250 |
| Business establishments registered under the Kerala General Sales Tax Act | ₹ 1,250 |
| Companies registered under the Companies Act | ₹ 1,250 |
| Banking firms, including state, district co-operative banks, urban banks, and their branches | ₹ 1,250 |
| Those operating factories under the Factories Act and running shops under the Shops and Establishments Act | ₹ 1,250 |
| Film studio operators, film producers, distributors, and actors involved in the production of at least one film per year | ₹ 1,250 |
| Individuals operating petrol or diesel stations | ₹ 1,250 |
Source: https://invest.kerala.gov.in/wp-content/uploads/2019/04/Profession-Tax-Rate.pdf
Kerala professional tax payment process
The professional tax can be paid online through the official website run by the Government of Kerala. The online payment facility is currently accessible for six corporations (Thiruvananthapuram, Kollam, Kannur, Kozhikode, Thrissur, and Cochin) and 86 municipalities.
Here are the steps involved in processing online payments:
- Visit the Profession Tax Online Payment System website.
- Log in to your account using your registered e-mail and password.
- On the portal, locate the option for professional tax payment and select the appropriate period for which you are making the payment.
- The system will auto-calculate the tax amount based on your employees' income slab and the applicable rates. Verify the recorded employee details and the tax amount before proceeding.
- Choose your preferred payment method from the available options (debit card, credit card, or net banking).
- Enter and review the necessary payment details and click Pay to initiate the payment process.
- Once the payment is successful, a confirmation receipt will be generated. You can download or print this receipt for your records.
Last date to pay professional tax in Kerala
Professional tax in Kerala is collected twice a year, on a half-yearly basis, with specific deadlines for each period. The tax schedule for the two halves of the year is as follows:
| Tax period | Payment deadline |
| April to September | On or before the 31st of August |
| October to March | On or before the end of February |
Late payment penalty
Employers and individuals who fail to pay professional tax may be subjected to a fine of ₹ 5,000 by the government authorities. Additionally, in the event of a delayed payment, the employer is responsible for a monthly penalty of 1% of the amount due.
Exemption from professional tax in Kerala
The following individuals are not required to pay professional tax in the state:
- Members of the armed forces under the Army Act, 1950, Navy Act, 1957, and Air Force Act, 1950.
- Individuals aged 65 years and above.
- Temporary or substitute workers in the textile industry.
- Individuals with permanent physical disabilities, including blindness.
- Parents or guardians of individuals with mental or permanent disabilities
Compliance forms for professional tax in Kerala
| Form | Description |
| Form 1 | Requisition of details of employees |
| Form 2 | Statement of income of laborers/employees for the half-year |
| Form 6 | Requisition for particulars relating to income from professions or other means |
References