Professional Tax FY 2026–27 Karnataka Guide
Author : Chhota CFO cfo | Published On : 23 Mar 2026
Professional Tax for FY 2026–27: Applicability, Slabs, Due Dates & Penalties
Professional Tax (PT) is a state-level tax that applies to individuals earning income from employment, profession, trade, or business in India. As the financial year 2026–27 begins, it is important to know:
- Who is required to pay PT
- The categories under which liability arises
- The due dates for payment
- Penalties for late or non-payment
Understanding these points will help ensure timely and smooth compliance with statutory requirements.
What is Professional Tax (PT)?
Professional Tax is levied by state governments under the authority of the Constitution of India. It applies to a wide range of individuals and entities, with a mm limit of ₹2,500 per person per year.
Who is Liable to Pay Professional Tax? (Categories of Persons)
The liability to pay Professional Tax is determined based on the class of persons defined under the respective state laws. Below is a structured overview:
|
Category |
Class of Person |
Applicability |
Mode of Payment |
|
Salaried Individuals |
Employees (Private / Govt / Contract) |
Applicable based on salary slabs |
Deducted by Employer (PTRC) |
|
Employers |
Companies, LLPs, Firms |
Required to deduct PT from employees |
Monthly payment to Govt |
|
Employers (Self Liability) |
Company / Firm / LLP / Director |
Liable for their own PT |
Pay under PTEC |
|
Professionals |
CA, Doctors, Lawyers, Architects, Consultants |
Covered under notified professional classes |
Annual payment (PTEC) |
|
Business Owners |
Proprietors, Traders, Shopkeepers |
Covered under trade/business class |
Annual payment (PTEC) |
|
Partners |
Partners in Partnership Firms |
Individually liable |
Annual payment |
|
Directors |
Directors of Companies |
Covered as separate class in many states |
Annual payment |
|
Contractors |
Builders, Contractors, Developers |
Classified under specific business class |
Annual payment |
|
Agents |
Insurance Agents, Commission Agents |
Covered under specific class |
Annual payment |
|
Transporters |
Fleet owners, goods carriers |
Covered under transport category |
Annual payment |
|
Entertainment Sector |
Theatre/Cinema Owners |
Covered under specific class |
Annual payment |
Professional Tax in Karnataka – Rules & Latest Amendment (2025 Update)
In Karnataka, Professional Tax (PT) is set by the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Employers are responsible for deducting this tax from employees’ salaries and paying it to the government.
A recent amendment, which takes effect on 1 April 2025, changes the tax structure to align with the annual limit of ₹2,500.
Professional Tax Slab in Karnataka (FY 2026–27)
|
Monthly Salary |
PT Deduction (Monthly) |
Annual PT |
|
Up to ₹24,999 |
Nil |
Nil |
|
₹25,000 & above |
₹200 (Apr–Jan) |
|
|
|
₹300 (February) |
₹2,500 |
Month-wise PT Deduction Structure
|
Month |
PT Amount (₹) |
|
April – January |
200 per month |
|
February |
300 |
|
March |
Nil |
Due Dates for Professional Tax Payment (PTRC & PTEC)
|
Particulars |
Due Date |
Remarks |
|
Monthly PT Payment |
20th of following month |
For tax deducted from employees |
|
Annual Return (if applicable) |
30th April (next FY) |
As per Karnataka PT rules |
Mode of Payment for Professional Tax
|
Category |
Responsibility |
Mode |
|
Employees |
No direct payment |
Deducted from salary |
|
Employers |
Deposit PT |
Online payment through Commercial Taxes portal |
Penalties for Late Payment & Non-Compliance
|
Nature of Default |
Penalty / Interest |
|
Late Payment |
Interest @ 1.25% per month |
|
Late Return Filing |
₹1,000 or more (based on delay) |
|
Non-Payment |
Penalty up to 50% of tax due |
Key Highlights of Professional Tax FY 2026–27
- PT applicable only if salary ≥ ₹25,000/month
- ₹300 deduction only in February (latest amendment)
- Annual cap: ₹2,500
- Due date: 20th of next month
- Employer is responsible for compliance
Conclusion: Ensure Timely Professional Tax Compliance
The revised Professional Tax structure in Karnataka facilitates adherence to statutory limits and simplifies the deduction process. Employers are required to ensure timely deduction and remittance, while employees should remain informed about the February adjustment.
Timely compliance with Professional Tax regulations mitigates the risk of penalties and supports efficient payroll management.
