Filing of monthly statement in Form 5-A and the annual return in Form 5 by an Employer under the Profession Tax Act :
1.1 Every employer registered under the Profession Tax Act is required to furnish a statement in Form 5-A every month showing the salary and wages paid by him to his employees and the amount of tax deducted by him. Such statement shall be furnished on or before 20th of succeeding month along with payment of the full amount of tax according to the statement.
1.2 Such employer is also required to furnish an annual return in Form 5 within 60 days of the expiry of a year. Further, he shall pay the full amount of tax payable by him on the basis of such return as reduced by any tax already paid along with monthly statement in Form 5-A.
1.3 If the amount of tax deducted in a month is not more than rupees five thousand, such employer shall furnish Form 5-A within 20 days of expiry of a quarter along with payment of tax (“Quarter” means period of three months ending on 31st day of May, 31st day of August, 30th day of November, and 28th day or 29th day of February).
1.4 “ Salary” or “Wages” includes pay or wages, dearness allowance, arrears of salary, bonus, perquisites and profits in lieu of salary etc. . If arrears of salary or bonus is paid in kind, value of such kinds shall also include in the “ Salary” or “Wages”.
i. No tax is deductible and payable by an employer from his employee who has attained the age of 65 years.
ii. No tax is deductible and payable by an employer in respect of an employee in any year if he is employed for a period which does not exceed 120 days.
Procedure: A facility has been provided to the registered employer to submit the monthly statement in Form 5 –A and the annual return in Form 5 electronically through internet. Such employer may also pay the tax through electronic mode through internet.
3.1 Every registered employer is provided with username and password. If the username and password are not communicated so far, the may be obtained from the jurisdictional Profession Tax Officer (PTO).
3.3 Under the heading e-Services, seven options as mentioned below are available:
I. Enrolment application
III. Application print
IV. Enrolment certificate
V. Enrolment Ack.
VI. Registered User’s Login
VII. New RC Request
The website for e-Payment system is https://vat.kar.nic.in/epay. This website is an open website without any user authentication. You may also access this website through a link provided in the CTD’s website http://vat.kar.nic.in Following is the procedure for making an e-payment.
i. The Employer opens the website and selects Profession Tax out of the nine categories of Commercial Taxes on the e-payment website.
ii. The employer enters his Registration Certificate number. The RC No. is validated by the system and details of name, address and office of the PTO in which he is registered are populated from the CTD database.
iii. Now, the employer enters the other details – Tax Period, amount of Tax and interest if any.
iv. Further, the employer selects the Bank for e-Payment from a drop down list. The system displays the banks who have integrated their e-payment process with Commercial Taxes Department.
v. After asking the employer to verify and confirm the details entered, he will be asked to click submit button. The system saves these details and a unique number called the CTD Reference Number is generated and displayed to the employer. The employer will note this number for future use.
vi. The system then passes the data relating to payment entered by the employer to the selected bank’s web-site and opens the bank website.
vii. The login page of the bank website will be opened and employer authenticates by entering his credentials, username and password, as given by the bank.
viii. The bank site now displays the Tax Category, RC No., CTD Reference Number and Amount of payment.
ix. Once the employer confirms payment, the transaction will be carried out in core banking system. Employer has to wait for thirty to forty seconds after carrying out the transaction successfully.
x. After completion of payment process, the bank’s web-site will return to the CTD website. During the return to the CTD website, the payment details from the bank site will travel to the CTD website and the same is updated into the database.
If one wish to enroll their firm Click here
Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976:
Profession Tax shall be paid by every person exercising any Profession or calling or is engaged in any trade or holds any appointment,public or private as specified in the Schedule to the Act.
[However no tax is payable by persons who have attained age of sixty five years. Also no tax is payable for holding any Profession for less than 120 days in that year.]
A person is defined under the Act to mean, any person who is engaged in any Profession, trade, callings or employment in the State of Karnataka and includes :-
· Hindu undivided family (HUF)
· Other Corporate bodies
· Any Society
· Any Club or Association.
Every branch of a firm, company, corporation or other corporate body, any society, club or association is treated as separate person for the purpose of tax liability.]
PENALTIES UNDER PROFESSION TAX ACT, 1976.
i) Penalty for non-registration in case of employer – Rs.1,000/- In case of other persons Rs.500/-.
ii) Penalty for non filing of Returns for an employer Rs.250/-.
iii) Penalty for non-payment of tax by enrolled person and registered employer with interest at rate of 1.25% per month and Penalty not exceeding 50% of the tax amount due.
Who are exempt from PT?
The following class of persons are exempted from payment of Profession Tax.
a. All charitable and philanthropic hospitals or nursing homes situated in places below the taluk level in all districts of the State except Bangalore and Bangalore Rural District.
b. Directors of Companies registered in Karnataka and nominated by the financing agencies owned or controlled by the State Government or by other statutory bodies.
c. Foreign technicians employed in the State provided their appointments are approved by the Government of India for the purpose of exemption from payment of income tax for the said period( exemption is for a period of 2 years from the date of their joining duty).
d. Combatant and civilian non combatant members of the Armed Forces who are governed by the Army Act, the Navy Act and the Air Force Act.
e. Salaried or wage earning blind persons.
f. Salaried or wage earning deaf and dumb persons
g. Holders of permits of single taxi or single three wheeler goods vehicle.
h. Institutes teaching Kannada or English Shorthand or Typewriting.
i. A Physically handicapped person not less than 40% of permanent disability (subject to production of certificate from the HOD of Government Civil Hospital).
j. An ex-serviceman not falling under Sl No.1 of the Schedule.
k. A person having single child and who has undergone sterilization operation, subject to production of a certificate from the District Surgeon, Government Civil Hospital, for having undergone such operation.
l. Central Para Military Force (CPMF) Personnel.
m. Persons running educational institutions in respect of their branches teaching classes upto twelfth standard or pre-University Education.