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Friday, August 19, 2016


As per the as per Kerala Municipal Act, 1994 (Section 254) it is mandatory for all employees who are drawing a half yearly salary of more than Rs. 12,000/- to pay profession tax. This tax is to be paid to the respective corporation/ municipality in which the company is situated. The tax slab is as mentioned in the below table.
Sl.NoHalf Yearly IncomeHalf Yearly Tax
1Rs 12,000 to Rs 17,999.Rs 120
2Rs 18,000 to Rs 29,999Rs 180
3Rs 30,000 to Rs 44,999Rs 300
4Rs 45,000 to Rs 59,999Rs 450
5Rs 60,000 to Rs 74,999Rs 600
6Rs 75,000 to Rs 99,999Rs 750
7Rs 1,00,000 to Rs 1,24,999Rs 1,000
8Rs 1,25,000 and aboveRs 1,250
The Profession Tax for the first half year (April – September) should be paid on or before August 31 and for the second half year (October – March) should be paid on or before February end. Normally the Secretary, Corporation/Municipality will issue a notice to the Managing Director/ Owner of the company to intimate the payment of profession tax for the corresponding period.
The delayed payment will attract a penalty at the rate of 1% per month. Also the penalty for not paying the profession tax will charge a fine of Rs. 5000/-.
For the submission of profession tax, it is mandatory that the below details are furnished.
Sl.NoNameDesignationMonthly SalarySalary x 6 monthsProfession Tax
For the calculation of salary, Basic, Special Allowance, Dearness Allowance, Bonus, Extra Income (arrears, leave surrender etc if any) to be added. Again a declaration by authorized authority that we have included all the employees for the payment of profession tax, company seal, authorized signatory are also essential. The photocopy/ original of the profession tax payed for the previous period (if available) is to be submitted while submitting the tax. On submission of tax, the company will be issued with a receipt by Secretary, Corporation/ Municipality.

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