Updated on April 02, 2025 06:26:23 PM
Professional tax is a state level tax levied on the persons practicing various professions, trade, calling or employment. In Kerala the tax regulation is under the Kerala Tax on Professions, Trades, Callings and Employments Act 1975. The main goal of professional tax is to raise revenues for the local bodies and the state governments which in turn provides funds for basic public services and formation of infrastructure. This tax brings all categories of employees and workers (both the employees, the freelancers, and the self-employed persons) under its net. For compliance, it is essential to comprehend the registration process and the documents that are required and given to the Kerala Commercial Taxes Department including PAN, Aadhaar and the proof of business address.
The system of the fees is forecasted according to the income levels of entrants, and it is crucial to pay for them on time to avoid additional charges. Employers are obliged to calculate and pay the tax on their employee’s behalf while a person who is involved in a business will be required to calculate and pay tax on his own. Failure to pay the professional tax is punishable by law with a number of penalties such as fines, interest on the taxes that have not been paid and may lead to legal actions. Therefore, awareness of the registration & the charges & penalties for noncompliance helps the people in the state to uphold the laws of professional tax in Kerala and in turn support the development goals of this state.
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Kerala is possible through the official site of Kerala Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Kerala:
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Kerala Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
For Companies/LLP/Partnership
For Individual
The professional tax in Kerala is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹11,999 | Nil |
| ₹12,000 to ₹17,999 | ₹320 |
| ₹18,000 to ₹29,999 | ₹450 |
| ₹30,000 to ₹44,999 | ₹600 |
| ₹45,000 to ₹99,999 | ₹750 |
| ₹1,00,000 to ₹1,24,999 | ₹1,000 |
| ₹1,25,000 to ₹20,00,000 | ₹1,250 |
Note: Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty of 1% interest per month on the outstanding amount.
The act regulating professional tax in Kerala is the Kerala Tax on Professions, Trades, Callings and Employments Act, 1975 Now, it is mandatory for all the employees in the state to register for professional tax to be on the right side of the law and also it plays a vital revenue source for the state government. This tax is paid by a number of professionals and its computation is based on income bands. Employees are supposed to have the taxes paid on their behalf by their employers while those who are self-employed pay the taxes themselves. Therefore, efforts should be made to ensure that the registration and payment is made early enough before the due date to minimize penalties on interests. By following these requirements, there are legal frameworks followed as well as funding for the local development in terms of public services and infrastructures.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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It is mandatory for all the working persons and organizations of Kerala involved with different professions, trades, callings, and employment to pay professional tax. This concerns both the employees, the wage earners, the freelancers, the self-employed persons and all companies.
It could be attained through the official website of Kerala Commercial Taxes Department or through online registration. Some of the requirements that you must provide include the PAN number, Aadhaar number and proof of business address. There are certain forms and procedures that have been posted on the website that need to be followed.
Yes, it is possible to change or update your registered information at the website of Kerala Commercial Taxes Department. Make certain that all changes are carried out and documented so as not to contravene any compliance regulation.
Profession tax is a state level tax and is levied on the persons and establishments practicing different professions, trades and employment in Kerala. Another difference is that while income tax is directly under the central government, professional tax is under the states’ department and may differ greatly in tax rates and the laws and rules governing them.
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