Updated Kerala Professional Tax Slabs Effective from 1st October 2024

Tax

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 SalaryProfessional Tax per Month
Up to Rs. 11,999Nil
Rs. 12,000 to Rs. 17,999Rs. 320
Rs. 18,000 to Rs. 29,999Rs. 450
Rs. 30,000 to Rs. 44,999Rs. 600
Rs. 45,000 to Rs. 99,999Rs. 750
Rs. 1,00,000 to Rs. 1,24,999Rs. 1000
Rs. 125,000 onwardsRs. 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.

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