Understanding Professional Tax
Professional Tax, often referred to as PT, is a state-level tax levied on individuals earning income through a profession, trade, calling, or employment.
In Kerala, like many other Indian states, it’s a mandatory tax that contributes to the state’s revenue. The amount of Professional Tax payable varies based on an individual’s income slab.
Recent Revisions
The Government of Kerala has recently announced a revision of Professional Tax rates, effective from 1st October 2024. These changes aim to align the tax structure with the state’s economic growth and development goals.
Revised Tax Slabs
Here’s a breakdown of the updated Professional Tax slabs in Kerala:
Half Yearly Salary | Professional Tax per Month |
Up to Rs. 11,999 | Nil |
Rs. 12,000 to Rs. 17,999 | Rs. 320 |
Rs. 18,000 to Rs. 29,999 | Rs. 450 |
Rs. 30,000 to Rs. 44,999 | Rs. 600 |
Rs. 45,000 to Rs. 99,999 | Rs. 750 |
Rs. 1,00,000 to Rs. 1,24,999 | Rs. 1000 |
Rs. 125,000 onwards | Rs. 1250 |
Key Points to Note
The revised slabs are applicable from the salary period starting on or after 1st October 2024.
Professional Tax is typically deducted from an employee’s salary by the employer.
Self-employed individuals are also liable to pay Professional Tax.
The tax is generally paid on a half-yearly basis.
Impact of the Revisions
The increase in Professional Tax rates might have a minor impact on the take-home salaries of individuals falling within the higher income brackets. However, the additional revenue generated through these revisions could be utilized by the state government for various development projects and social welfare initiatives.
Frequently Asked Questions
Who is liable to pay Professional Tax in Kerala?
All individuals earning a salary or income through a profession, trade, calling, or employment in Kerala are liable to pay Professional Tax.
How is Professional Tax calculated?
The tax amount is determined based on the individual’s monthly salary and the applicable tax slab.
When is Professional Tax paid?
Professional Tax is generally paid on a half-yearly basis.
Can Professional Tax be deducted from the source?
Yes, employers are typically responsible for deducting Professional Tax from their employees’ salaries.
What happens if Professional Tax is not paid on time?
Failure to pay Professional Tax on time may result in penalties and interest charges.
The updated Professional Tax slabs in Kerala aim to contribute to the state’s economic growth and development. While the revisions might have a minor impact on the take-home salaries of some individuals, they are essential for ensuring that the state has sufficient resources to fund essential services and infrastructure projects.