The Karnataka Government has officially notified an important amendment to the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976. This change, brought in through the Karnataka Act No. 33 of 2025, was published in the state gazette on April 15, 2025, and has been made effective from April 1, 2025.
Under the amended law, the monthly Professional Tax (PT) for salaried individuals and wage earners has been revised slightly:
- ₹200 per month – for all months except February
- ₹300 for February – applicable every financial year
This means the total annual PT liability now stands at:
₹200 × 11 months + ₹300 (February) = ₹2,500 per annum
This change is relevant to:
- Employers – who are responsible for deducting and remitting PT from employees’ salaries
- Employees – whose monthly salary exceeds the PT threshold (currently ₹15,000/month)
- Self-employed professionals and traders – who fall under the taxable category per the existing slabs
Effective Date
The new slab has come into force from April 1, 2025. Employers must take note of this revised rate while deducting PT for April 2025 onwards.
- Update your payroll systems to reflect the revised PT deductions.
- Ensure accurate deduction of ₹300 for February each year.
Stay compliant with monthly PT returns and remittances to avoid penalties.