Schedule, entry 1
Entry 1: Salary or Wage Earners
Entry 1 was substituted with effect from 1 April 2023 and its rate column was substituted again with effect from 1 April 2025.
| Salary or wage or both for a month | Month | Rate of tax |
|---|---|---|
| ₹25,000 and above | Every month except February | ₹200 per month |
| ₹25,000 and above | February | ₹300 |
Eleven months at ₹200 and February at ₹300 add up to ₹2,500 for a full year. The Schedule has no entry for salary or wage below ₹25,000 a month.
Calculator
Work Out the Profession Tax to Deduct or Pay
Pick the person and, for an employee, the salary or wage for the month. The calculator follows the Schedule as substituted from 1 April 2023, with the entry 1 rates from 1 April 2025.
Schedule rates only. A full year assumes the salary is ₹25,000 or more in every month; where it is not, add the months one by one. Each additional place of business counts as a separate person (Explanation V).
Schedule as substituted with effect from 1 April 2023
Entries 2 to 12: Other Classes of Persons
| Entry | Class of persons | Rate of tax |
|---|---|---|
| 2 | Persons registered or liable to be registered under the Karnataka Goods and Services Tax Act, 2017. | ₹2,500 per annum |
| 3 | Self-employed persons engaged in professions, trades, callings and employments, with a standing in profession for more than 2 years, including legal practitioners, consultants, agents, chartered accountants and actuaries, engineers, health care professionals, estate agents or brokers, beauty parlours, dry cleaners and interior decorators, journalists and advertisement agencies, persons providing entertainment using dish antenna or cable TV, computer institutes selling time, computer training, driving and technical training institutes, astrologers, astropalmists, numerologists, vaastu consultants and faith healers. | ₹2,500 per annum |
| 4 | Horse owners and trainers, jockeys, directors, actors and actresses (excluding junior artists), owners of oil pumps and service stations, gas stations, electric charging stations, owners of nursing homes, hospitals, diagnostic centres, clinical laboratories and X-ray clinics (other than those run by the Central Government, State Government and local bodies), owners of gymnasium and fitness centres. | ₹2,500 per annum |
| 5 | Educational institutions and tutorial colleges or institutes other than those run by the Central Government, State Government and local bodies. | ₹2,500 per annum |
| 6 | Employers of establishments defined under the Karnataka Shops and Commercial Establishments Act, 1961, employing more than five employees. | ₹2,500 per annum |
| 7 | Licensed dealers of liquors, money lenders licensed under the Karnataka Money Lenders Act, 1961, and individuals or institutions conducting chit funds. | ₹2,500 per annum |
| 8 | Owners of transport vehicles (other than auto rickshaws) run on their own or through others under permits granted under the Motor Vehicles Act, 1988; goods transport agencies (GTA) and transport contractors including forwarding and clearing agents. | ₹2,500 per annum |
| 9 | Co-operative societies registered under the Karnataka Co-operative Societies Act, 1959 and engaged in any profession, trade or calling. | ₹2,500 per annum |
| 10 | Companies registered under the Companies Act, 2013 and engaged in any profession, trade or calling; banking companies as defined in the Banking Regulation Act, 1949. | ₹2,500 per annum |
| 11 | Persons other than those mentioned in the preceding entries who are engaged in any profession, trade, calling or employment and who are paying tax under the Income Tax Act, 1961. | ₹2,500 per annum |
| 12 | Persons other than those mentioned in the preceding entries who are engaged in any profession, trade, calling or employment with a minimum of two years of standing and who are not exempted by notification of the State Government. | ₹2,500 per annum |
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Explanations I to V
Explanations to the Schedule
- Explanation I: where a person is covered by more than one entry in the Schedule, tax is payable under any one of such entries.
- Explanation II: for determining liability in terms of Serial No. 4 (as printed in the Act), the higher number of workers or employees at any time during the year is reckoned as the basis.
- Explanation III: where any asset or business is held on lease by a lessee, the lessee is deemed to be the person liable under the Act.
- Explanation IV: no tax is levied on any partner of a firm engaged in any profession, trade or calling if the tax is paid by the firm.
- Explanation V: every additional place of a person enumerated in any item of the Schedule is deemed to be a separate person for the levy, except additional places of business used exclusively as godowns for storing goods.
- Section 3(2), first proviso (substituted with effect from 1 April 2018): no tax is payable by individuals who are senior citizens having attained the age of sixty years.
If you miss it
Late Fee and Penalty
Late payment: interest
An employer who does not deduct the tax or, after deducting, fails to pay it pays simple interest at 1.5% of the tax due for each month or part of a month while it remains unpaid. An enrolled person, or a person liable to be enrolled, who fails to pay pays interest at the same rate. Act s.11(2) and 11(3) · Act 14 of 2023
Late registration or enrolment
Failing to apply for registration or enrolment in time attracts a penalty of ₹1,000 for an employer and ₹500 for any other person. Deliberately giving false information in the application can attract a penalty of up to ₹1,000. Act s.5(5) and 5(6)
Monthly statement not filed or tax not paid
An employer who fails to furnish the monthly statement or to pay the tax due on it can be charged a penalty of ₹250. Where tax is not paid within the time in the notice of demand, the penalty is equal to 10% of the tax due, in addition to interest. Act s.6A(4) and s.12 · Act 14 of 2023
Prosecution
Failing without sufficient cause to comply with the Act or the Rules is punishable on conviction with a fine up to ₹5,000, and up to ₹50 a day while the offence continues. Act s.23
Worked examples
What You Pay in Common Cases
Employee earning ₹40,000 a month, full year
11 months × ₹200, entry 1₹2,200
February₹300
Deducted in the year₹2,500
Employee earning ₹22,000 a month
Below ₹25,000, no entry in the ScheduleNil
FebruaryNil
Deducted in the year₹0
Private limited company with GST registration
Entry 10 (also entry 2), one entry only, Explanation I₹2,500
DueBefore 30 April, s.10(2)
Tax for the year₹2,500
Employer pays ₹10,000 of deducted tax two months late
Interest, 1.5% × 2 months, s.11(2)₹300
Tax₹10,000
Paid with the tax₹10,300
Procedure
How to Apply and Pay
- 1Register or enrolApply within thirty days of starting the profession, trade, calling or employment, online where the Commissioner has notified the website (s.5(1) to 5(3)).
- 2Deduct from salaryDeduct the entry 1 amount before paying the salary or wage (s.4).
- 3Monthly statement and paymentWithin twenty days of the end of each month, with proof of payment of the tax deducted (s.6A(1) and 6A(2)).
- 4Annual returnWithin sixty days of the end of the year, after paying any balance tax (s.6(1) and 6(2)).
- 5Enrolled personsPay before 30 April of the year, or within one month of enrolment (s.10(2)). From 1 April 2026, paying the tax counts as filing the return (s.10(1), Act 22 of 2026).
Practical
How to Use This Chart
- For payroll, deduct ₹200 for each month in which salary or wage is ₹25,000 and above, and ₹300 for February.
- A person covered by more than one entry pays under one entry only (Explanation I).
- Count every additional place of business as a separate person, other than a place used only as a godown (Explanation V).
Not shown on this page
- The text read is the PRS compilation of the Act with amending Acts appended up to Karnataka Act 22 of 2026 (published 27 March 2026). Amendments made after that are not included, and the compilation itself says some amending Acts may not be available in it.
- Exemption notifications of the State Government (for example under entry 12) are not shown.
- The Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976 are not on file in an official copy. The forms, the manner of payment and any due date fixed only by the Rules are not shown; the due dates on this page are those in the Act.
- Deduction of tax by insurance companies, banks, turf clubs and others from agents and other persons under section 10(3) to 10(8) is not covered.
- In the PRS compilation the body of the Act carries amendments up to about 2005 and later amending Acts are appended. Interest, penalties and due dates were read by applying the appended Acts of 2007, 2009, 2011, 2012, 2018, 2023 and 2026 to the body text.
- The Schedule as it stood before 1 April 2023 is not reproduced.
Official documents behind this page
- Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2023 (Karnataka Act 14 of 2023, gazette of 14 March 2023)Section 7: substitution of the whole Schedule and Explanations I to V, in force from 1 April 2023. Entries 1 to 12 read from it.
- Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025 (Karnataka Act 33 of 2025, gazette of 15 April 2025)Section 2: in serial number 1 of the Schedule, column (3) substituted by ₹200 per month (except February) and ₹300 for February, in force from 1 April 2025.
- Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2018 (Karnataka Act 6 of 2018)Section 2: first proviso to section 3(2), no tax payable by senior citizens who have attained sixty years, in force from 1 April 2018.
- Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2026 (Karnataka Act 22 of 2026, gazette of 27 March 2026)Read to confirm it amends section 10 (returns) only and does not change the Schedule.
- Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), PRS compilationSection 3 (levy and charge, including the proviso on persons engaged for not more than 120 days in a year) and the list of amending Acts appended: 5 of 2001 to 22 of 2026. Also section 4 (employer liability), section 5 (registration and enrolment within thirty days; penalty of ₹1,000 or ₹500 inserted by the Taxation Laws (Amendment) Act, 2009), section 6 (annual return within sixty days), section 6A (monthly statement within twenty days; penalty of ₹250), section 10 (enrolled persons pay before 30 April), section 11 (interest), section 12 (penalty), section 23 (offences).
- Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2023 (Karnataka Act 14 of 2023), sections 3 to 6Interest under section 11(2) raised from one and a quarter to one and a half per cent a month; penalty under section 12 made equal to ten per cent of the tax due; in force from 1 April 2023.
- Karnataka Taxation Laws (Amendment) Acts of 2007, 2009, 2011 and 2012 (as appended in the PRS compilation)2007: section 10(1) (enrolled persons pay and file return as prescribed). 2009: section 5(5) and section 6A(4) (penalties). 2011: section 5 (applications online where notified). 2012: section 6A(1) first proviso (quarterly statement) omitted.
Disclaimer: This chart reproduces fees and rates from the official documents listed above, as read on 2 October 2026. It is general information, not professional advice for your case. Fees, rates and slabs are changed by notification, and the amount the authority’s portal or challan asks for on the day you pay is the one that applies. The calculator only adds up the figures on this page; it does not know your facts or any later change. TaxClue is not responsible for a decision taken on this page alone. Check the current notification on the official website before you pay or file.