Country: India
State: Kerala
Compliance category: Professional Tax
Regulatory Information:
Regulation:
- Kerala Municipality (Profession Tax) Rules 2005
- Kerala Panchayat (Profession Tax) Rules 1996
Notification/Circular no: 1149/2024/LSGD
Notification date: June 27,2024
Source: https://go.lsgkerala.gov.in/files/go20240627_37169.pdf
Updates in Compliance:
Summary:
The Government of Kerala vide above notification revised the professional tax rates based on the recommendations submitted to 6th State Finance commission.
Effective date: October 01,2024
Revised wage limits:
| Half-yearly Income (in ₹) | Existing Tax (in ₹) | Revised Tax (in ₹) |
|---|---|---|
| Up to 11,999 | Nil | Nil |
| 12,000-17,999 | 120 | 320 |
| 18,000-29,999 | 180 | 450 |
| 30,000-44,999 | 300 | 600 |
| 45,000-59,999 | 450 | 750 |
| 60,000-74,999 | 600 | 750 |
| 75,000-99,999 | 750 | 750 |
| 1,00,000-1,24,999 | 1,000 | 1,000 |
| 1,25,000 | 1,250 | 1,250 |
Our Analysis:
The professional tax rates for individuals earning half yearly income above INR 75,000 continue to remain the same while the income group between INR 12,000 to INR 75,000 will be obliged to pay at an increased rate ranging between 25%-200%.
This revision was basically brought with an intent to revisit the rates as it was fixed 33 years back, but it will significantly impact the professionals and employees falling in the lower income group having half yearly income of up to INR 45,000 as the increase is 200% and more from the previous applicable rates.
