Professional Tax, commonly referred to as P.Tax, is a state-level tax levied on individuals earning income through salary or practicing a profession such as a doctor, lawyer, or chartered accountant. In Karnataka, understanding the P.Tax list of Karnataka is essential for businesses, HR departments, and professionals to ensure payroll compliance and avoid penalties. This guide by Digiliance provides a comprehensive overview of Karnataka’s professional tax structure, including updated slab rates, filing obligations, and compliance best practices.

What is Professional Tax?

Professional Tax is a direct tax imposed by state governments on individuals earning an income through employment, profession, or business. In Karnataka, it is governed under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. The tax amount is nominal but must be paid regularly and filed properly to remain compliant.

Who Needs to Pay P.Tax in Karnataka?

The P.Tax list of Karnataka covers the following categories:

  • Salaried Employees: P.Tax is deducted by the employer every month.

  • Self-employed Professionals: Must register and pay P.Tax themselves.

  • Freelancers & Consultants: Liable to pay tax if their income crosses the applicable threshold.

  • Businesses: Responsible for deducting and depositing P.Tax for all eligible employees.

P.Tax List of Karnataka – Updated Slabs for 2025

As of 2025, Karnataka follows a simplified professional tax structure:

Monthly Gross Salary (INR)

Monthly P.Tax Payable

Up to ₹14,999

NIL

₹15,000 and above

₹200

Only one slab is currently applicable, which makes P.Tax calculation in Karnataka straightforward for payroll teams.

Due Dates and Filing Frequency

To remain compliant with the P.Tax list of Karnataka, employers and individuals must adhere to the following:

  • Monthly Payment Due Date: On or before the 20th of every month.

  • Annual Return Filing: Must be filed by 30th April of the following financial year.

  • Online Filing: Payments and returns can be filed online via the Karnataka Commercial Taxes Department portal.

Penalties for Non-Compliance

Failing to comply with Karnataka’s professional tax regulations can lead to the following penalties:

  • Failure to Register: ₹5 per day.

  • Late Filing of Returns: Up to ₹1,000.

  • Non-payment or Late Payment: Penalty of 1.25% per month on the outstanding amount.

  • Furnishing Incorrect Details: May result in legal action or fines.

Why Professional Tax Compliance Matters

Compliance with the P.Tax list of Karnataka is not just a legal formality but a part of responsible business operations. Proper deduction, timely payment, and return filing:

  • Prevent penalties and legal issues

  • Improve employee trust and transparency

  • Ensure smooth audits and inspections

  • Enhance business credibility

How Digiliance Helps with P.Tax Compliance

Digiliance is your trusted compliance partner in managing complex state-level obligations like Professional Tax. Here's how we help:

  • Automated calculation as per the latest P.Tax list of Karnataka

  • Timely reminders for payments and filings

  • Online registration and return filing support

  • End-to-end payroll compliance services

  • Dedicated support for Karnataka and pan-India regulations

With Digiliance, businesses can focus on growth while we handle the statutory headaches.

Frequently Asked Questions (FAQs)

Q1. What is the current P.Tax slab in Karnataka for salaried employees?
A: According to the P.Tax list of Karnataka, a flat ₹200 is deducted monthly from employees earning ₹15,000 or above.

Q2. Who is responsible for paying P.Tax in Karnataka?
A: Employers must deduct and remit the tax for salaried staff. Self-employed individuals are responsible for registering and paying on their own.

Q3. What are the penalties for late payment or non-filing?
A: Penalties include late fees, interest on outstanding tax, and possible legal action depending on the severity of non-compliance.

Q4. Is professional tax applicable to freelancers and consultants?
A: Yes, if their monthly income exceeds ₹15,000, they must pay ₹200 as per the P.Tax list of Karnataka.

Q5. Can I pay P.Tax online in Karnataka?
A: Yes, Karnataka offers a user-friendly online portal to make payments and file returns under the Commercial Taxes Department.

Q6. How can Digiliance assist with P.Tax compliance?
A: Digiliance provides expert guidance, automated tools, and managed services to help you comply with the P.Tax list of Karnataka without missing deadlines or slab changes.

Conclusion

Keeping up with Karnataka’s professional tax regulations is a critical aspect of running a compliant and responsible business. With a clear understanding of the P.Tax list of Karnataka, updated slabs, due dates, and potential penalties, employers and professionals can ensure seamless compliance. Partner with Digiliance for expert-led payroll management and never miss a step in your compliance journey.