If you're an employer, HR professional, or self-employed individual in Karnataka, understanding the state's P.Tax list of Karnataka is not just good practice—it’s a legal necessity. Professional Tax (P.Tax) is a small yet mandatory deduction that supports state development programs. Even though the amount may seem minimal, missing out on deadlines or incorrect filings can lead to unnecessary penalties.

In this guide by Digiliance, we break down everything you need to know about Karnataka’s professional tax rules, updated slabs for 2025, and how to stay compliant with ease.

What is Professional Tax in Karnataka?

Professional Tax is a direct tax imposed by the state government on individuals earning income through salary, business, or practicing a profession. The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 regulates this tax in the state. The deducted amount is remitted to the Commercial Taxes Department of Karnataka.

Whether you’re a salaried employee, freelancer, consultant, or running a business with staff, P.Tax applies if your income meets the applicable threshold.

Who Needs to Pay P.Tax in Karnataka?

As outlined in the P.Tax list of Karnataka, the following individuals are liable:

• Employees earning a monthly salary of ₹15,000 or more
  
  

• Self-employed professionals such as lawyers, doctors, and CAs
  
  

• Freelancers and consultants
  
  

• Employers, who must deduct and deposit P.Tax for their employees
  
  

P.Tax Slab in Karnataka (2025)

Karnataka follows a simple slab structure for Professional Tax. Here’s the latest as per 2025 regulations:

This flat-rate structure makes it easier for payroll departments and self-employed professionals to manage deductions.

Due Dates for Payment and Filing

Understanding due dates is key to compliance. Here's what you need to know:

• Monthly P.Tax Payment: Due on or before the 20th of every month
  
  

• Annual Return Filing: Due by 30th April of the following financial year
  
  

• Filing Method: Online via Karnataka Commercial Taxes Department portal
  
  

Consequences of Non-Compliance

Failing to adhere to the P.Tax list of Karnataka and its due dates can lead to:

• Penalty of ₹1,000 for late return filing
  
  

• ₹5/day for delay in registration
  
  

• Monthly interest on late payments
  
  

• Legal action in cases of continuous default
  
  

Maintaining compliance helps avoid disruptions in your business operations and boosts employer credibility.

Benefits of Staying Compliant

Following Karnataka’s P.Tax norms has multiple benefits:

• Avoid penalties and interest
  
  

• Ensure smooth financial audits
  
  

• Improve HR and payroll accuracy
  
  

• Demonstrate professionalism to employees and clients
  
  

How Digiliance Supports Your P.Tax Compliance

Digiliance makes payroll compliance hassle-free by:

• Providing up-to-date insights on the P.Tax list of Karnataka
  
  

• Automating tax calculations based on slabs
  
  

• Offering timely filing reminders
  
  

• Managing documentation and return submissions
  
  

Whether you're a startup or a large enterprise, our compliance solutions are tailored to your needs.

Frequently Asked Questions (FAQs)

Q1. What is the current professional tax rate in Karnataka?
A: As per the latest P.Tax list of Karnataka, individuals earning ₹15,000 or more per month must pay ₹200 monthly.

Q2. Who is responsible for paying P.Tax in Karnataka?
A: Employers deduct and pay P.Tax for employees, while self-employed individuals must pay it directly.

Q3. What happens if I miss a P.Tax filing deadline?
A: You may incur penalties, late fees, and interest charges. Continued failure can lead to legal action.

Q4. Can professional tax be paid online in Karnataka?
A: Yes, payments and filings are processed through the Karnataka Commercial Taxes Department website.

Q5. How does Digiliance help businesses with P.Tax compliance?
A: Digiliance automates slab-based calculations, reminds you of deadlines, files returns on your behalf, and ensures complete compliance with the P.Tax list of Karnataka.

Conclusion

Navigating Karnataka’s Professional Tax laws doesn’t have to be complicated. With the P.Tax list of Karnataka remaining stable and easy to understand, what matters most is timely filing, accurate deduction, and consistent compliance. Digiliance ensures that you stay ahead of the curve—leaving no room for errors or penalties.