On April 17th 2025, the Karnataka State Legislature has passed The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2025 (LA Bill No. 08 of 2025), bringing changes to the professional tax structure in the state. The amendment comes into effect from April 1, 2025.
The Bill, which amends the original Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, revises the professional tax payable by salaried individuals and professionals under Serial Number 1 of the Schedule.
What’s Changed?
Under the amended structure:
- Rs. 200 per month will be payable for each month except February.
- For the month of February, the tax payable is now Rs. 300.
This change marks a shift from the earlier uniform monthly structure, where the same amount was typically paid each month. The increase in February could be aimed at aligning with annual accounting practices or balancing state revenue collections towards the financial year-end.
When Does It Come Into Effect?
The new rates are applicable from April 1, 2025 onwards, meaning professionals, employers, and payroll managers should update their systems and compliance processes accordingly.
Who Does This Impact?
The amendment affects:
- Salaried individuals
- Employers handling employee tax deductions
- Professionals and traders registered under the Act
Those falling under the specified tax slabs must ensure timely payment to avoid penalties.
