Profession Tax as per Kerala Municipal Act, 1994 (Section 254)
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BY lijo.abraham
8 years ago
Quality-Assurance
19 comments comment

As per the as per Kerala Municipal Act, 1994 (Section 254) it is mandatory for all employees who are drawing a half yearly salary of more than Rs. 12,000/- to pay profession tax. This tax is to be paid to the respective corporation/ municipality in which the company is situated. The tax slab is as mentioned in the below table.

Sl.No Half Yearly Income Half Yearly Tax
1 Rs 12,000 to Rs 17,999. Rs 120
2 Rs 18,000 to Rs 29,999 Rs 180
3 Rs 30,000 to Rs 44,999 Rs 300
4 Rs 45,000 to Rs 59,999 Rs 450
5 Rs 60,000 to Rs 74,999 Rs 600
6 Rs 75,000 to Rs 99,999 Rs 750
7 Rs 1,00,000 to Rs 1,24,999 Rs 1,000
8 Rs 1,25,000 and above Rs 1,250

The Profession Tax for the first half year (April – September) should be paid on or before August 31 and for the second half year (October – March) should be paid on or before February end. Normally the Secretary, Corporation/Municipality will issue a notice to the Managing Director/ Owner of the company to intimate the payment of profession tax for the corresponding period.

The delayed payment will attract a penalty at the rate of 1% per month. Also the penalty for not paying the profession tax will charge a fine of Rs. 5000/-.

For the submission of profession tax, it is mandatory that the below details are furnished.

Sl.No Name Designation Monthly Salary Salary x 6 months Profession Tax
           

For the calculation of salary, Basic, Special Allowance, Dearness Allowance, Bonus, Extra Income (arrears, leave surrender etc if any) to be added. Again a declaration by authorized authority that we have included all the employees for the payment of profession tax, company seal, authorized signatory are also essential. The photocopy/ original of the profession tax payed for the previous period (if available) is to be submitted while submitting the tax.

On submission of tax, the company will be issued with a receipt by Secretary, Corporation/ Municipality.


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Comments


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Gopkumar (not verified)
access_time 18 Sep 2021 - 10:24

I am starting a small firm in Panchayat / Municipal area of Trivandrum (Kerala). While keeping myself abreast of statutory regulations, I could see that Professional Tax of every employee as per their status of salary is to be collected from every employee and remitted to the concerned Panchayat or Municipality. Now I am told that in addition to the tax collected from every employee, my organization also has to pay Tax. Is it true ? I could not see this in the Rules. Can you please guide me ?


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Joby.P.K (not verified)
access_time 18 Sep 2021 - 10:24

My friend is getting an amount of Rs. 12000/- as monthly honorarium continuously from a government office. Hence it may be clarified that whether he is liable to remit profession tax since he is receiving payment as honorarium. The matter may kindly be clarified along with a copy of Govt. Order if possible.


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JOSEPH (not verified)
access_time 18 Sep 2021 - 10:24

We got a notice from thrikkakara municipality for institution tax for employment. please tell the provisions of kerala municipal act about institutions tax laibility for employment.


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Adarshmv86 (not verified)
access_time 18 Sep 2021 - 10:24

Hi sir,
am working in as HR execuite in a pvt firm regd under kerala shops ans commercial establishment.
I want to know that if there is any process of registraion for payment of PT in to muncipality.


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sheelamichayel (not verified)
access_time 18 Sep 2021 - 10:24

In reply to by Adarshmv86 (not verified)

I want to know in favour of whom the PT cheque shoule be made.


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Ebin (not verified)
access_time 18 Sep 2021 - 10:24

Hi,
form my company has 3 branches in 3 different panchayath. So,
my doubt is should I pay profession tax to all 3 panchayath or paying to only one panchayth is enough?


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HAFIS MOHAMED (not verified)
access_time 18 Sep 2021 - 10:24

I am running a school we have near 8 Teachers there and , can you please let me know even we want to pay this tax.. and this School dont have Govt. Affiliation,


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sasi kumar (not verified)
access_time 18 Sep 2021 - 10:24

kindly clarify whether the allowances viz. house rent allowances, transport allowances and over time allowances, special pay for family planning etc. has to be taken into account for calculating the profession tax
regards


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Anonymous (not verified)
access_time 18 Sep 2021 - 10:24

whether the HRA & TP inclusive in salary calculation.


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Santhosh sam (not verified)
access_time 18 Sep 2021 - 10:24

Is there any criteria for an employee on professional tax based on working days (minimum number of working days/he is elegible on the very first day itself).


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Anonymous (not verified)
access_time 18 Sep 2021 - 10:24

is the professional tax applicable to employees in probation ?


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baby (not verified)
access_time 18 Sep 2021 - 10:24

I have three shops in one panchayath, shal pay three profession tax


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Parveen (not verified)
access_time 18 Sep 2021 - 10:24

Dear All

can you tall me cochin professional tax cheque in favour of


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Arun George (not verified)
access_time 18 Sep 2021 - 10:24

Anybody please help me know latest amendment for professional tax,is it charged to basic salary? and also let me know the last date for first quarter payment.


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Gopinath R Nair (not verified)
access_time 18 Sep 2021 - 10:24

If one employee's gross salary is Rs. 10000/- p.m. suppose one he/she is getting salary 6000/- after deducting leaves.

in this case we have to consider gross salary or salary payable.
this is my doubt? Last 15 yrs i was worked in Maharashtra. In Maharashtra we are considering salary payable for computation of Professional Tax. so kindly clear my doubts.


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KRP (not verified)
access_time 18 Sep 2021 - 10:24

As per Kerala Profession Rules, whether a person getting
Felloship amount from a Central Govt. Institution is liable to Pay Profession Tax? He is getting the fellowship amount for
doing Research work under the guidance of Institution. Kindly clarify with Rule Postion. He is not an employee of the Instituion. However he is enjoying the facilities of the Instituion like Canteen, Transport etc.


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Abdul Ajeesh (not verified)
access_time 18 Sep 2021 - 10:24

who want to pay the tax amount the company are employee.
If the staff is another state person he want to pay the amount
and the professional tax will be refundable like TDS


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Sarah Daniel (not verified)
access_time 18 Sep 2021 - 10:24

i am working in a hospital . recently overtime allowance is being added to the salary structure . want to know whether professional tax will be calculated on the gross salary after including the overtime allowance or will it be calculated on gross salary excluding overtime allowances. plss help


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PARTHASARATHY … (not verified)
access_time 18 Sep 2021 - 10:24

Dear Sir,
Our establishment is at Poruvazhy ,Bharanikavu, Sasthamkotta at Kollam District. We want to know where should we remit the Professional Tax and TDS ?