Country: India
State: Karnataka
Compliance category: Professional Tax
Regulatory Information:
Regulation: The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025.
Act/Notification/Circular No: Karnataka Act No.33 of 2025.
Notification date: April 15, 2025
Source: https://erajyapatra.karnataka.gov.in/WriteReadData/2025/8459.pdf
Updates in Compliance:
Summary:
The Government of Karnataka vide above notification revised the professional tax rates.
Effective Date: April 01, 2025
Revised rates:
| Monthly Income (in ₹) | Existing Tax (in ₹) | Revised Tax (in ₹) |
| Up to 15,000 | Nil | Nil |
| 15,001 – 24,999 | 150 | Nil |
| ≥25,000 | 200 | 200 (Except for the month of February i.e., ₹300) |
Our Analysis:
The revised Karnataka Professional Tax rates bring a more progressive approach by expanding exemptions for middle-income earners while marginally increasing the annual liability for higher earners. Employees earning between ₹15,001 and ₹24,999 per month are now exempt from professional tax, providing relief to middle-income earners. For those earning ₹25,000 and above, the annual professional tax has increased by ₹100 to make it par with few other states i.e., from ₹2,400 to ₹2,500, due to a higher deduction in February. This balanced revision not only aims to reduce the financial burden on a broader segment of the workforce but also ensures enhanced revenue collection through equitable contribution from higher salary brackets.
