The KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1976

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THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT
ACT, 1976
ARRANGEMENT OF SECTIONS

Statements of Objects and Reasons

Sections:
1. Short title, extent and commencement.
2. Definitions.
3. Levy and charge of tax.
3A. Omitted.
4. Employer's liability to deduct and pay tax on behalf of employees.
5. Registration and enrolment.
6. Return.
6A. Payment of tax in advance.
7. Assessment of employer or person.
7A. Omitted.
8. Rectification of mistakes.
9. Assessment of escaped tax.
10. Payment of Tax by enrolled persons 1[and deduction of tax in the case of certain
enrolled persons
11. Consequences of failure to deduct or to pay tax.
12. Penalty for non-payment of tax.
13. Recovery of tax and other amounts and period of limitation for recovery of tax
14. Authorities for implementation of the Act.
14A. Instruction to subordinate authorities.
15. Appointment of Collecting Agents.
16. Appeals.
17. Appeal to the Appellate Tribunal.
18. Revision by Commissioner, Additional Commissioner, Joint Commissioner and
Deputy Commissioner.
18A. Revision by High Court in certain cases.
19. Accounts.
20. Special mode of recovery.
21. Production and inspection of accounts and documents and search of premises.
22. Refunds.
23. Offences and penalties.
24. Offences by companies.
25. Power to transfer proceedings.
26. Compounding of offences.
27. Powers to enforce attendance, etc.
28. Bar of suits, etc.
28A. Appearance before any authority in proceedings
29. Power to exempt.
30. Local authorities not to levy profession tax.

31. Cesses not to be levied in certain cases.
32. Grants to local authorities for loss of revenue.
33. Power of make rules.
34. Power to remove difficulties.
SCHEDULE.
* * * *
STATEMENTS OF OBJECTS AND REASONS
I
Act 35 of 1976. - In order to augment the revenues of the State, it is considered
necessary to levy a tax on professions, trade, callings and employments.
Salary and wage earners having a monthl y income of Rs. 500 and above will b e required
to pay the said Tax, according to a graded scale. Self -employed persons will be required to
pay fixed amounts ranging from Rs. 50 to Rs 250 per year, the levy being based on broad
criteria related to the earning capacity of different groups of profession.
Provision is made for registration of employers and enrolment of self -employed persons
and the procedure for the levy and collection of the Tax is laid down.
Provisions is also made for appeals and other an cillary matters for the administration of
the Tax.
With the levy of Profession Tax by the State Government, the powers which the local
bodies to levy this tax have at present is proposed to be withdrawn. But, provision is
proposed for reimbursement of the loss of revenue to such of the local bodies as are levying
the tax at present.
Hence this Bill
(Obtained from L.A. Bill No. 34 of 1976.)
II
Amending Act 8 of 1981. - At present the Insurance Agents are liable to pay
profession tax according to their st anding in the profession and the places at which they
carry on the profession. It was represented that the existing provisions cause hard -ship to
them. On a Careful consideration of the question, it is proposed to allow them to pay tax on a
slab system, similar to that provided for salary or wage earners under the Act.
(Obtained from L.A. Bill No 39 of 1981)
III
Amending Act 13 of 1982. - In the budget speech for the year 1982 –83, the Hon’ble
Minister of Finance and Tourism, has indicated several proposal in order to augment the
revenue of the State. This Bill seeks to give effect to the said proposals. Opportunity is taken
to make some other minor amendments.

(Published Karnataka Gazette (Extraordinary) Part IV -2A, as No. 223, dated 27 -3-1982,
p. 31.)
IV
Amending Act 26 of 1982.- It is decided that there should be some minimum period
of exercise of profession in year for attracting the tax liability under the Karnataka Tax on
Professions, Traders, Callings and Employment Act , 1976. It is considered d esirable to fix
up the minimum period at 120 days in a year.
According to the proviso of item (xi) of section 94 of the Karnataka Municipalities Act, a
tax under item (ix) shall not be levied where the Municipality levies of profession tax. As
professions tax is now being levied in all cases, item (ix) of the proviso thereto of the
Karnataka Municipalities Act are being deleted.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2A dated 10-6-1982 as, No
469.)
(Obtained from L.A. Bill No. 23 of 1982.)
V
Amending Act 1 of 1985. - Amendment to Sl. No. 1 of the Schedule to the Act is
proposed to incorporate the decision of the Government to exempt all wage earners who
earn a wage or salary of less than Rs.1,500/- per month.
Opportunity is also taken to make certain other amendments for rationalising the existing
provisions.
Hence this Bill.
(Obtained from L.A. Bill No. 31 of 1983)
VI
Amending Act 29 of 1985. - In his Budget Speech for 1985 -86 the Chief Minister
indicated that salary or wage earners whose basic salary/ wage is less than Rs. 1,200/ - per
month and dealers whose annual turnover in less than Rs. 75,000/- would be exempted from
payment of Professional tax and that some more professions would be brought into the tax
net.
Hence this Bill.
(Obtained from L.A. Bill No. 25 of 1985)
VII
Amending Act 13 of 1986. - Since June, 1986, the worker relating to Profession Tax
in respect of dealers registered under the Karnataka Sales Tax Act, 1957, is entrusted to the
respective assessing authorities. It would be convenient for the officers who collect

Registration Fee under the Karnataka Sales Tax Act, 1957 during the month of April every
year, to collect simultaneously, the Profession Tax also for the dealers. It would be
convenient for the dealers also. Hence, it is proposed to advance the last date for payment
in respect of the enrolled persons from 30th September of the year to 30th April of the year.
(Obtained from L.A. Bill No. 20 of 1986.)
VIII
Amending Act 13 of 1987. - To give effect to the proposals made in the Budget
Speech, it is proposed to amend the Karnataka Tax on Professions, trades, Calling and
Employments Act, 1976.
Hence the Bill.
(Obtained from L.A. Bill No. 19 of 1987.)
IX
Amending Act 15 of 1989. - To give effect to the proposals made in the Budget
speech it is proposed to amend the Karnataka Tax on Professions, Traders, Callings and
Employments Act, 1976. Opportunity is also taken to amend section 11 of the Act to exempt
from payment of balance of interest payable upto 31st March 1987 in respect of tax paid
belatedly and also the interest payable on taxes due upto 31st March, 1987 if the taxes are
paid on or before 30th June 1989.
Hence the Bill.
(Obtained from L.A. Bill No. 6 of 1989)
X
Amending Act 5 of 1990. - To give effect to the proposals made in the Budget
Speech, it is considered necessary to amend the Karnataka Tax of Professions, Traders,
Callings and Employments Act, 1976.
Opportunity is also taken to rationalise certain provisions of the said Act.
Hence the Bill.
(Obtained from L.A. Bill No. 2 of 1990)
XI
Amending Act 13 of 1991. - To give effect to the proposal made in the Budget
Speech, it is considered necessary to amend the Karnatak a Tax on Professions, Traders,
Callings and Employments Act, 1976.
Hence the Bill.
(Obtained from L.A. Bill No. 8 of 1991.)

XII
Amending Act 5 of 1992. - To give effect to the proposal made in the Budget
Speech, it is considered necessary to amend the Karnataka Tax on Professions, Traders,
Callings and Employments Act, 1976.
Opportunity is also taken to make consequential amendment to the said Act.
Hence the Bill.
(Obtained from L.A. Bill No. 13 of 1992)
XIII
Amending Act 5 of 1993. - Consequent to the re -designation of posts in the
Commercial Tax Department, it has become necessary to make suitable amendments in the
relevant Taxation Laws.
The full bench of our High Court in Shah Wallace case while overruling a Division
Bench judgment of our High c ourt in Janardhanacharya’s case had held that the
notifications issued under section 8A of the Karnataka Sales Tax Act, 1957 become
inoperative when the relevant provisions of the Act are subsequently amended by way of
insertion of any entry relating to th e class of goods to which exemptions were given by the
notifications. Therefore, it was considered necessary to suitably amend the said Act, to
save the notifications already issued.
As the matter was urgent and both the Houses were not in session, the am endments
were carried -out by promulgation of the Karnataka Taxation Laws (Amendment)
Ordinance, 1992.
This Bill seeks to replace the above Ordinance, Hence the Bill.
(Obtained from LA Bill No. 29 of 1992.)
XIV
Amending Act 11 of 1993. - It is considered n ecessary to amend the Karnataka tax
on Luxuries (Hotel and Lodging Houses) Act, 1979, the Karnataka Tax on Professions,
Traders Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958
and the Karnataka Sales Tax Act, 1957 to give eff ect to the proposals made in the budget
speech and matters connected therewith.
Hence the Bill.
(Obtained from L.A. Bill No. 15 of 1993.)
XV
Amending Act 18 of 1994. - It is considered necessary to amend the Karnataka
Sales Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments
Act, 1976, the Karnataka Tax on Entry of Goods Act, 1979, the Karnataka Entertainments

Tax Act, 1958, the Mysore Betting Tax Act, 1932 and the Karnataka Agricultural Income Tax
Act, 1957 to give effect to the proposals made in the Budget speech and matters connected
therewith.
Hence the Bill.
(Obtained from LA Bill No. 12 of 1994.)

XVI
Amending Act 6 of 1995.- It is considered necessary to amend the Karnataka Sales
Tax Act, 1957, the Karnataka Agricul tural Income Tax Act, 1957, the Karnataka Tax on
Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainment Tax
Act, 1958, the Karnataka Tax on Entry of Goods Act, 1979, Karnataka Tax on Luxuries,
(Hotels and Lodging House) Act, 1 979, the Mysore Betting Tax Act, 1932 and to give effect
to the proposals made in the Budget speech and matters connected therewith.
Hence the Bill.
(Obtained from LA Bill No. 4 of 1995.)
XVII
Amending Act 5 of 1996. - It is considered necessary to amend the Karnataka Tax
on Luxuries (Hotels and Lodging Houses) Act, 1979, the Karnataka Tax on Professions,
Trades, Callings and Employment Act, 1976, the Karnataka Entertainments Tax Act, 1958,
the Karnataka Agricultural Income Tax Act, 1957, and the Karnataka Sales Tax Act, 1957 to
give effect to the proposals made in the Budget speech and matters connected therewith.
Hence the Bill.
(Obtained from LA Bill No. 12 of 1996.)
XVIII
Amending Act 7 of 1997. - It is considered necessary to amend the Karnataka Tax
on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 of
1979), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the
Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 (Karnata ka Act
35 of 1976), the Karnataka Excise Act 1966 (Karnataka Act 21 of 1966), the Karnataka
Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Agricultural Income
Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Sales Tax Act, 19 57 (Karnataka
Act 25 of 1957), the Mysore Betting Tax Act 1932 (Mysore Act IX of 1932), and to give effect
to the proposals made in the Budget Speech and matters connected therewith. Certain
consequential amendments are also made.
Hence, the Bill.

(Obtained from LA Bill No. 12 of 1997.)
XIX
Amending Act 3 of 1998. - It is considered necessary to amend the Karnataka
taxation Laws Amendment Act, 1997 (Karnataka Act 7 of 1997), the Karnataka Tax on Entry
of Goods Act 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Luxuries (Hotel,
Lodging Housed and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka
Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), the Mysore Betting Tax Act, 1932
(Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) and
to give effect to the proposals made in the Budget Speech and matters connected therewith.
Certain consequential amendments are also made.
Hence, the Bill.
(Obtained from L.A. Bill No. 6 of 1998.)

XX
Amending Act 5 of 2001.- To give effect to the proposals made in the budget speech, it
is considered necessary to amend the Karnataka Sales Tax Act, 1957 (Karn ataka Act 25 of
1957), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the
Karnataka Tax on Luxuries Act, 1979 (Karnataka Act 22 of 1979), the Karnataka
Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Tax on Professions,
Trades, Callings and Employment Act, 1976 (Karnataka Act 35 of 1976) and the Karnataka
Agricultural Income Tax, 1957 (Karnataka Act 22 of 1957). Certain consequential
amendments are also made.
Hence, the Bill.
(Vide LA Bill No. 7 of 2001 File No. DAPL 9 SHASANA 2001)

XXI
Amending Act 7 of 2003. - To give effect to the proposals made in the Budget Speech,
it is considered necessary to amend the Karnataka Agricultural Income Tax Act, 1957, The
Karnataka Tax Act, 1957, the Karnataka Entertainment Tax Act, 1958, the Karnataka Tax on
Professions, Trades, Callings and Employment Act, 1976, the Ka rnataka Tax on Luxuries
Act, 1979 on Entry of Goods Act, 1979 and the Karnataka Electicity (Taxation on
Consumption) Act, 1959.
Hence, the Bill.
(Vide LA Bill No. 9 of 2003 File No. SAMVYASHAE 17 SHASANA 2003)

XXII
Amending Act 13 of 2003. - It is con sidered necessary to prepare upto date Codal
Volumes of the Karnataka Acts and to repeal all the spent Acts and amendment Acts from
time to time.
The Government constituted One -man Committee for the above purpose. The
Committee has reviewed the Karnataka Acts for the period from 1.11.1956 to 31.12.2000
and has proposed the "Repealing and Amending Bill, 2002" which seeks to repeal the
following types of Acts,-
(i) Acts which amended the Karnataka Acts whether they are now in force or not;
(ii) Acts which amended regional Acts which are no longer in force;
(iii) Appropriation Acts as they are spent Acts;
(iv) Acts which have been struck down or by necessary implication struck down by the
Courts;
(v) Acts which are by implication repealed by Central Acts;
(vi) Acts which are temporary and spent enactments; and
(vii) Acts which amend the Central Acts and regional Acts which are in force.
The Bill does not include Acts which are already repealed expressly.
This Bill also seeks to amend certain Acts which are considered necessary.
Hence the Bill.
[L.C. BILL No. 4 OF 2002]
[Various entries of List II and III of the Seventh Schedule]
XXIII
Amending Act 26 of 2004.- To give effect to the proposals made in the Budget Speech,
it is considered necessary to amend the Mysore Betting Tax Act, 1932 (Mysore Act IX of
1932), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 o 1957), the Karnataka
Entertainment Tax Act, 1958, (Karnataka Act 30 of 1958), , the Karnataka Tax on
Professions, Trades, Callings and Employment Act, 1976, 1979, (Karnataka Act 35 of 1976)
the Karnataka Tax on Luxuries Act, and the Karnataka on Entry of Goods Act, 1979
(Karnataka Act 27 of 1979).

Opportunity is also taken to rationalize certain provisions of the said Acts and also to
codify and make certain consequential emendments to implement reliefs already
announced.
Hence, the Bill.
(Vide File No. SAMVYASHAE 23 SHASANA 2004)
XXIV
Amending Act 11 of 2005. - To give effect to the proposals made in the Budget
Speech, it is considered necessary to amend the Mysore Betting Tax Act, 1932 (Mysore Act
IX of 1932), the Karnataka Sales Tax Act, 1957(Karnataka Act 25 of 1957), the Karnataka
Entertainments Tax Act, 1958(Karnataka Act 30 of 1958), the Karnataka Tax on Professions,
Trades, Callings and Employments Act, 1976(Karnataka Act 35 of 1976), the Karnataka Tax
on Entry of Goods Act, 1979(Karnataka Act 27 of 1979), the Karnataka Tax on Lotteries Act,
2004 (Karnataka Act 3 of 2004), the Karnataka Special Tax on Entry of Certain Goods Act,
2004 (Karnataka Act 29 of 2004) and the Karnataka Value Added Tax Act, 2003 (Karnataka
Act 32 of 2004).
Opportunity is also taken to rationalize certain provisions of the said Acts.
Hence the Bill.
XXV
Amending Act 5 of 2006. - It is considered necessar y to amend the Karnataka
Agriculture Income Tax Act, 1957, the Karnataka Sales Tax Act, 1957, the Karnataka
Entertainments Tax Act, 1958, the Karnataka Tax on Professions Trades, Callings and
Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on
Entry of Goods Act, 1979 to give effect to the proposal made in the Budget and matters
connected therewith.
Certain consequential and incidental amendments are also made.
Hence the Bill.
[ L.A. Bill No. 6 of 2006 ]

XXVI

Amending Act 5 of 2007. - It is considered necessary to amend the Karnataka
Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and
Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the
proposals made in the Budget and matters connected therewith and also to amend the

Karnataka Sales Tax Act, 1957 to provide for a provision for empowering the State
Government to withdraw any notification issued under section 8 -A either prospectively or
retrospectively to give effect to the decision taken by the State Government with regard to
discontinuance of sales tax based incentives to industries as a part of national consensus to
bring in reforms in State taxes.
Certain consequential and incidental amendments are also made.
Hence the Bill.
[L.A. Bill No. 22 of 2007]
[Entries 54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.]
XXVII
Amending Act 6 of 2008. - It is considered necessary to amend the Karnataka Sales
Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on
Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on
Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected
therewith or incidental thereto.

Opportunity is also taken to rationalise taxation and make certain consequential
amendments also.
Hence the Bill.
(LA Bill No. 3 of 2008, File No. DPAL 11 Shashana 2008)
[Entry 60 of List II of the Seventh Schedule to the Constitution of India.)
XXVIII
Amending Act 7 of 2009. - It is considered necessary to amend the Mysore Betting tax
Act, 1932, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions
Trades, Callings and Employments Act, 1976 and the Ka rnataka Tax on Luxuries Act, 1979
to give effect to the proposals made in the Budget and matters connected therewith.
Certain consequential and incidental amendments are also made.
Hence the Bill.
(LA Bill No. 21 of 2009, File No. DPAL 13 Shashana 2009)
[Entries 60 and 62 List II of the Seventh Schedule to the Constitution of India.)

XXIX
Amending Act 5 of 2010.- It is considered necessary to amend the Karnataka Sales
Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on
Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries

Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals
made in the Budget and matters connected therewith and specifically to,
(i) amend the Ka rnataka Sales Tax Act, 1957 to provide for levy of tax on
supply of goods by an association or a body of persons like clubs,
registered or unregistered, to its members retrospectively from second
day of February, 1983 from which day by the forty-sixth amendment to the
Constitution of India, the State Legislature was empowered to levy tax on
such transactions so as to remove doubts raised in this regard because of
the judgment of the Hon’ble High Court of Karnataka in the case of
Century Club and Others vers us The State of Mysore and another,
declaring the provisions made in the Karnataka Sales Tax Act, 1957
before such constitutional amendment for levy of tax on such transactions
as void and inoperative.
(ii) provide for collection of entry tax in advance under the Karnataka Tax on
Entry of Goods Act, 1979 at the point of sugar factories selling sugar to
dealers who subsequently cause entry of such sugar into any local area in
the State.

Certain consequential and incidental amendments are also made.
Hence the Bill.
[L.A.Bill No. 9 of 2010, File No.DPAL 12 Shasana 2010]
[Entries 52,54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.]

XXX

Amending Act 15 of 2011.- It is considered necessary to amend the Mysore Betting
Tax Act, 1932, the Mysore Race Courses Licensing Act, 1932, the Karnataka
Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and
Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on
Entry of Goods Act, 1979 to,

(i) extend the application of the Betting Tax Act, 1932 and the Mysore Race Courses
Licensing Act, 1952 for the whole of State of Karnataka;

(ii) to omit certain redundant provisions and the Schedules in the Betting Tax Act,
1932 and the Mysore Race Courses Licensing Act, 1952;

(iii) to repeal certain redundant enactments; and

(iv) give effect to the proposals made in the Budget and matters connected therewith.
Certain consequential and incidental amendments are also made.
Hence the Bill.
[L.A. Bill No.11 of 2011, File No. Samvyashae 13 Shasana 2011]
[Entries 34,52, 60 and 62 of List II of the Seventh Schedule to the Constitution of
India.]
XXXI
Amending Act 18 of 2012. - It is considered necessary to amend the Karnataka
Agricultural Income Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the
Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka
Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect
to the proposals made in the Budget and matters connected therewith.
Certain consequential and incidental amendments are also made.
Hence the Bill.
[L.A. Bill No. 4 of 2012, File No. Samvyashae 24 Shasana 2012]
[Entries 46, 52, 60 and 62 of List II of the Seventh Schedule to the Constitution of
India.]
XXXII

Amending Act 27 of 2013.- It is considered necessary to amend the Karnataka Tax
on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on
Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters
connected therewith.
Hence the Bill.
[L.A. Bill No.9 of 2013, File No. Samvyashae 17 Shasana 2013]
[Entries 52 and 60 of List II of the Seventh Schedule to the Constitution of India.]

XXXIII
Amending Act 53 o f 2013. - It is considered necessary to amend the Karnataka
Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on
Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Entry
of Goods Act, 1979 to g ive effect to the proposals made in the Budget and matters

connected therewith particularly to specify that any clarification issued by the Commissioner
of Commercial Taxes under the Karnataka Sales Tax Act, 1957 or the Karnataka Tax on
Entry of Goods Act, 1979 overrides the clarification of the Authority for Clarification and
Advance Rulings.
Certain consequential and incidental amendments are also made.
Hence the Bill.
[L.A. Bill No. 07 of 2013, File No. Samvyashae 36 Shasana 2013]
[Entries 52, 54, 60 and 62 of List II of the Seventh Schedule to the Constitution of
India.]
XXXIV
Amending Act 14 of 2015.- It is considered necessary to amend the Karnataka Tax on
Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Agricultural
Income Tax Act, 1957 to give effect to the proposals made in the Budget and matters
connected therewith and specifically to,

(i) provide the benefit of exemption from payment of Profession tax to
citizens who have attained sixty years of age and are considered as
Senior Citizens.
(ii) provide relief from payment of Profession tax by low salaried persons.
(iii) provide upward revision of replanting allowances considering the
escalation in replantation expenditure incurred by coffee planters.
Hence, the Bill.
[L.A. Bill No. 07 of 2015, File No. Samvyashae 16 Shasana 2015]
[Entries 46 and 60 of List II of the Seventh Schedule to the Constitution of India.]

XXXV
Amending Act 05 of 2016.- To give effect to the proposals made in the Budget Speech,
it is considered necessary to amend the Karnataka Entertainment Tax Act, 1958 (Karnataka
Act 30 of 1958), Karnataka Tax on Professions, Trades, Callings and Employments Act,
1976 (Karnataka Act 35 of 1976), the Karnataka Tax on luxuries Act, 1979 (Karnataka Act
22 of 1979) and the Karnataka Tax on Entry of Goods Act, 1979(Karnataka Act 27 of 1979).
Opportunity is also taken to rationalize certain provisions of the said Acts and repeal The
Karnataka Agriculture Income-Tax 1957 (Karnataka Act 22 of 1957).

Hence the Bill

[L.A. Bill No.11 of 2016, File No. Samvyashae 19 Shasana 2016] [entries 46, 52,60 and
62 of List II of the Seventh Schedule to the Constitution of India.]

XXXVI
Amending Act 06 of 2018. - It is considered necessary to amend the Karnataka Tax on
Professions, Trades, Call ings and Employments Act, 1976, to give effect to the proposal
made in the Budget 2018-19 and matters connected therewith and specifically to,-

(i) enhance the turnover limit for levy of Profession Tax in respect of Contractors
executing work co ntracts, Persons registered and Persons licenced or approved as
Contractors in Railways, State or Central Government etc., in tune with the threshold
limit for registration under the Karnataka Goods and Services Tax Act, 2017.

(ii) to exclude Agriculturists growing plantation crops as defined in the Agricultural
Income-tax Act,1957 (Karnataka Act 22 of 1957) which has been repealed with
effect from 01 -04-2016 by the Karnataka Taxation Laws (Amendment) Act,2016
(KARNATAKA ACT NO.5 OF 2016).

(iii) to exclude Hindu Undivided Family, firm, company, corporation or other corporate
body, any society, club or association who have attained the age of sixty years from
the benefit of claiming exemption from Professional Tax under proviso to sub-section
(2) of Section 3.

Hence the Bill.
[L.A. Bill No.59 of 2018, File No. Samvyashae 10 Shasana 2018]
[entry 60 of List II of the Seventh Schedule to the Constitution of India.]

XXXVII

Amending Act 14 of 2023. -The Karnataka Tax on Profession, Trades, Calling s and
Employments Act, 1976 was enacted to make a provision for the levy and collection of tax
on Professions, Trades, Callings and Employments by the Government of Karnataka.
However, after implementing the GST Act, certain difficulties were faced. In or der to
overcome the difficulties, it is proposed to amend the Karnataka Tax on Profession, Trades,
Callings and Employments Act, 1976 (Karnataka Act No. 35 of 1976).

In the Budget speech for the year 2023-2024, in para 443, it is proposed the Karnataka
Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2023, inter alia,
provides for the following, namely:-
(1) to insert new clause (aa) after clause (a) in section 2, so as to provide for a
definition for the term “agent” to mean a person acti ng on behalf of another
person in the course or furtherance of business.
It further seeks to insert new clause (ab) after clause (aa) in section 2, so as to
provide for a definition for the term “assessment” for the purposes of this Act,
to mean dete rmination of tax liability under this Act and includes self -
assessment, reassessment and best judgment assessment.

It further seeks to amend clause (h)in section 2, in the explanation to also
include a proprietary concern to be deemed person to remove am biguity in
levying tax in case of a proprietary concern.

(2) Seeks to amend sub -section (2) of section 9,so as to reduce penalty where
the escape from the assessment was due to wilful non -disclosure of
information or attempt at evading the tax by the employer or the person from
one and a half time the tax to equal to one hundred percent of the tax in line
with GST Act.

(3) Seeks to amend sub -section (6) of section 10, so as to reduce interest rate
where default is committed in payment of tax so deducted by a per son
making deduction from two percent per month to one and a half percent per
month in line with the GST Act.

(4) Seeks to amend sub -section (2) of section 11 so as to increase the interest
rate where any employer fails to deduct the tax at the time of paymen t of the
salary or wage, or after deducting fails to pay the tax from one and a quarter
percent per month to one and a half percent per month in line with the GST
Act.

(5) Seeks to amend section 12 so as to reduce the penalty for non -payment of
tax by a regis tered employer within the required time from an amount not
exceeding fifty percent to a fixed amount of ten percent whether or not a
reasonable cause is present.

(6) To substitute the Schedule to suit the present circumstances in the light of
implementation of GST and also to rationalise the tax payable. Further the
explanations are also substituted to remove ambiguity.

Hence, the Bill

[L.A. Bill No. 06 of 2023, File No. SAMVYASHAE 06 SHASANA 2023]
[Entry 60 of List II of the Seventh Schedule to the Constitution of India.]
[Published in Karnataka Gazette Extra-ordinary No.113 in part-IVA dated:14.03.2023]
* * *

XXXVIII

Amendment Act 33 of 2025:- It is considered necessary further to
amend the Karnataka Tax on Profession, Trades, Callings and Employme nts
Act, 1976 (Karnataka Act 35 of 1976) to give effect to the proposals made in
the para 476 of Budget Speech for the year 2025 -2026 and to increase rate
of tax from rupees 2400 to rupees 2500 per annum on salary or wage
earners whose salary or wage or bo th, as the case may be, for a month is
rupees 25,000 and above.
Hence, the Bill.
[L.A. Bill No.08 of 2025, File No. SAMVYASHAE 08 SHASANA 2025]
[Entry 60 of List II of the Seventh Schedule to the Constitution of India.]
[Published in Karnataka Gazette E xtra-ordinary No.232 in part -IVA
dated:15.04.2025]
XXXIX
Amendment A ct 22 of 2026 :- The Karnataka Tax on Professions,
Trades, Callings and Employments Act 1976 (Karnataka Act 35 of 1976)
provides for levy and collection of tax on professions, trades, calli ngs and
employments and also prescribes procedural requirements for enrolment
and filing at returns by enrolled persons.
Under the existing provisions of section 10 of the said Act, every
enrolled person is required to furnish a return, even in cases where the
enrolled person has paid the maximum tax prescribed under the said Act for
the relevant year. This has resulted in avoidable compliance burden on
taxpayers and unnecessary administrative processing by the Commercial
Tax Department, without any corresponding revenue benefit.
With a view to simplifying compliance, reducing paperwork, and
facilitating ease of doing business, it is proposed to deem the furnishing of
return in cases where an enrolled person has paid the tax payable by him
under the Act for a year. Further, it is also proposed to empower the

Commissioner to exempt, by notification, specified classes of enrolled
persons from furnishing returns, subject to such conditions and safeguards
as may be specified in the notification.
Proposed amendment seeks to streamline tax administration, improve
voluntary compliance, and enable efficient deployment of departmental
resources.
Hence, the Bill.
[L.A. Bill No. 08 of 2026, File No. SAMVYASHAE 08 SHASANA 2026]
[Entry 60 of List II of the Seventh Schedule to the Constitution of India]
[Published in Karnataka Gazette Extra -ordinary No.250 in part -IVA
dated:27.03.2026]

KARNATAKA ACT NO. 35 OF 1976
(First published in the Karnataka Gazette Extraordinary on the Twenty-ninth day of April
1976)
THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS
ACT, 1976
(Received the assent of the Governor on the Twenty-eighth day of April 1976)
(As Amended by Acts 8 of 1981, 13 of 1982, 26 of 1982, 1 of 1985, 29 of 1985, 13 of 1986,
13 of 1987, 15 of 1989, 5 of 1990, 13 of 1991, 5 of 1992, 5 of 1993, 11 of 1993, 18 of 1994,
6 of 1995, 5 of 1996 , 7 of 1997, 3 of 1998, 5 of 2001, 7 of 2 003, 13 of 2003, 26 of 2004, 11
of 2005, 5 of 2006, 5 of 2007, 6 of 2008, 7 of 2009, 5 of 2 010, 15 of 2011, 18 of 2012, 27 of
2013, 53 of 2013 , 14 of 2015 , 05 of 2016, 06 of 2018 , 14 of 2023 , 33 of 2025 and 22 of
2026)
An Act to provide for the levy and collection of tax on professions, trades, callings and
employments in the State.
WHEREAS it is expedient to provide for the levy and collection of a tax on professions,
trades, callings and employments;
BE it enacted by the Karnataka State Legislature in the Twenty -seventh Year of the
Republic of India as follows :-
1. Short title, extent and commencement.- (1) This Act may be called the Karnataka
Tax on Profession, Trades, Callings and Employments Act, 1976.
(2) It extends to the whole of the State of Karnataka.
(3) It shall be deemed to have come into force on the first day of April, 1976.
2. Definitions.- In this Act, unless the context otherwise requires,-
(a) "assessee" means a person or employer by whom tax is payable under this Act;
1[(aa) “agent” means a person who acts on behalf of another person in the course or
furtherance of business;
(ab) “assessment” for the purposes of this Act, means determination of tax liability under
this Act and includes self-assessment, reassessment and best judgment assessment;]1
1. Inserted by Act 14 of 2023 w.e.f. 01.04.2023.
(b) "assessing authority" means a 1[Deputy Commissioner of Profession Tax, Assistant
Commissioner of Profession Tax]1 or 2[Profession Tax Officer]2 or any other officer authorised
by the State Government in this behalf to make any assessment by or under this Act;
1. Substituted by Act 11 of 1993 w.e.f. 1.4.1993
2. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
(c) "Bangalore Urban Agglomeration" means the area specified as such in Schedule I to
the Urban Land (Ceiling and Regulation) Act, 1976 (Central Act 33 of 1976);
(d) "Commissioner" means the Commissioner of Profession Tax appointed under section
14 and includes a 1[Additional Commissioner] 1 of Profession Tax (if any) appointed under
that section:
1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
(e) 1["Joint Commissioner"]1 means any person appointed to be a 1[Joint Commissioner]1
of Profession Tax under section 14;
1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992

(f) "employer", in relation to an employee earning any salary or wages on regular basis
under him, means the person or the officer who is responsible for the disbursement of such
salary or wages and includes the head of the office or any establishment as well as the
manager or agent of the employer;
(g) "month means a calender month;
(h) "person" means any person who is engaged in any profession, trade, calling or
employment in the State of Karnataka and includes a Hindu Undivided Family, firm,
company, corporation or other c orporate body, any society, club or association, so engaged
but does not include any person who earns wages on a casual basis;
1[Explanation.- Every branch of a 2[“proprietary concern,”]2 firm, company, corporation or
other corporate body, any society, club or association whall be deemed to be a person.]1
1. Inserted by Act 7 of 2003 w.e.f. 1.4.2003.
2. Inserted by Act 14 of 2023 w.e.f. 1.4.2023.
(i) "profession tax" or "tax" means a tax leviable under the provisions of this Act;
1[(j) 'salary' or 'wage' incl udes pay or wage, dearness allowance and all other
remunerations received or receivable by any person including any amount received by way
of arrears of salary or bonus by whatever name called whether payable in cash or kind and
also includes perquisites a nd profits in lieu of salary as defined in section 17 of the Income
Tax Act, 1961.
Explanation.- (i) Where 'bonus' by whatever name called is received in part or full, then
such bonus shall be spread over for twelve months of the year or to such number o f months
the bonus relates for purposes of computation of 'Salary' or 'Wage' for such months.
(ii) Where arrears of salary is received in part or full, then such arrears shall be
spread over for the relevant months for which it relates for purposes of co mputation of
'Salary' or 'Wage' for such months.]1
1. Substituted by Act 15 of 1989 w.e.f. 1.4.1987
(k) "Schedule" means the Schedule appended to this Act;
(l) "Tribunal" means the Karnataka Appellate Tribunal constituted under the Karnataka
Appellate Tribunal Act, 1976 (Karnataka Act 10 of 1976);
(m) "year" means the year commencing on the first day of April.
3. Levy and charge of tax. - (1) There shall be levied and collected a tax on
professions, trades, callings and employment for the benefit of the State.
(2) Every person who exercises any profession or calling or is engaged in any trade or
holds any appointment, public or private, or is employed in any manner in the State,
specified in the second column of the Schedule, shall be liable to pay to the State
Government the tax at the rate mentioned in the corresponding entry in the third column of
the said Schedule :
4[3[Provided that, no tax shall be payable by the individuals who are senior citizens having
attained the age of sixty years:]3]4
1[Provided further that the levy and collection of tax from any person under this section
shall be subject to the restriction specified in clause (2) of Article 276 of the Constitution.]1
2[Provided further that, no tax shall be payable by a person in respect of any year if the
period during which he exercises such profession or calling or is engaged in the trade or
holds the appointment or is employed does not exceed one hundred and twenty days in that
year.]2
1. Inserted by Act 8 of 1981 w.e.f. 4.4.1981
2. Inserted by Act 26 of 1982 w.e.f. 27.7.1982.
3. Substituted by Act 14 of 2015 w.e.f 01.04.2025.

4. Substituted by Act, 06 of 2018 w.e.f. 01.04.2018

1[3A. x x x]1
1. Omitted by Act 3 of 1998 w.e.f. 1.4.1998.
4. Employer's liability to deduct and pay ta x on behalf of employees. - The tax
payable under this Act by any person earning a salary or wage, shall be deducted by his
employer from the salary or wage payable to such person before such salary or wage is paid
to him, and such employer shall, irrespec tive of whether such deduction has been made or
not when the salary or wage is paid to such persons, be liable to pay tax on behalf of all
such persons:
Provided that, if the employer is an officer of Government, the State Government may,
notwithstanding anything contained in this Act, prescribe by rules the manner in which such
employer shall discharge the said liability.
5. Registration and enrolment. - (1) Every employer (not being an officer of
Government) liable to pay tax under section 4 shall obtai n a certificate of registration from
the assessing authority in the prescribed manner.
1[Provided that the Commissioner may notify the website in which an application for
registration shall be made electronically in the manner specified in the said notification.]1
1. Inserted by Act 15 of 2011 w.e.f. 01.04.2011.
(2) Every person liable to pay tax under this Act (other than a person earning salary or
wages, in respect of whom the tax is payable by his employer), shall obtain a certificate of
enrolment from the assessing authority in the prescribed manner.
1[Provided that the Commissioner may notify the website in which an application for
enrolment shall be made electronically in the manner specified in the said notification.]1
1. Inserted by Act 15 of 2011 w.e.f. 01.04.2011.
(3) Every employer or person required to obtain a certificate of registration or enrolment
shall, within ninety days from the date of commencement of this Act or, if he was not
engaged in any profession, trade, calling or employment on the date, within thirty days from
the date of commencement of his profession, trade, calling or employment, or in respect of
a person referred to in sub-section (2) within thirty days of his becoming liable to pay tax at a
rate higher or lower than the o ne mentioned in his certificate of enrolment, apply for a
certificate of registration or enrolment, or revised certificate of enrolment, as the case may
be, to the assessing authority in the prescribed form, and the assessing authority shall, after
such inquiry as it may deem fit 2[within thirty days of the receipt of the application ]2 (which
period in the first year from the commencement of this Act shall be extended to ninety days),
if the application is in order, grant him such certificate.
1[Provided that where after the issue of the enrolment certificate the tax payable under
this Act is revised the person liable to pay tax under this Act shall, notwithstanding that the
enrolment certificate is not revised pay tax at such revised rates from the date of such
revision.]1
1. Substituted by Act 18 of 1994 w.e.f. 1.4.1994.
2. Substituted by Act 05 of 2016 w.e.f. 1.4.2016
(4) The assessing authority shall mention in every certificate of enrolment, the amount of
tax payable by the holder according to the Schedule a nd the date by which it shall be paid,
and such certificate shall serve as a notice of demand for purposes of section 12.
1[(5) Where an employer or a person liable for registration or enrolment has failed to apply
for such registration or enrolment withi n the time specified, the assessing authority shall,
after giving him a reasonable opportunity of being heard, impose a penalty of one thousand

rupees in the case of an employer and five hundred rupees in the case of any other
person.;]1
1. Inserted by Act 7 of 2009 w.e.f. 1.4.2009.

1[(5) x x x]1
1. Omitted by Act 18of 1994 w.e.f. 1.4.1994.
(6) Where an employer or a person liable to registration or enrolment has deliberately
given false information in any application submitted under this section , the assessing
authority may, after giving him a reasonable opportunity of being heard, impose a penalty
not exceeding rupees one thousand.
1[6. Return.- (1) Notwithstanding anything contained in section 6A, every employer
registered under this Act, sh all furnish to the assessing authority within sixty days of the
expiry of the year, a return in the prescribed form showing therein the salaries and wages
paid by him and the amount of tax deducted by him in respect thereof during the preceding
year.
2[Provided further that the specified class of employers as may be notified by the
Commissioner shall submit the return in the prescribed form, electronically through internet
in the manner specified in the said notification.] 2
(2) Before any employer subm its any return under sub -section (1), he shall, in the
prescribed manner, pay in advance the full amount of tax payable by him on the basis of
such return as reduced by any tax already paid under section 6A and shall furnish along with
the return satisfactory proof of the payment of such tax, and a return without such proof of
payment shall not be deemed to have been filed. After the final assessment is made, the
amount of tax so paid shall be deemed to have been paid towards the tax finally assessed.
2[Provided that the specified class of employers as may be notified by the
Commissioner shall pay the tax payable on the basis of the return under sub -section (1), by
electronic remittance through internet in the manner specified in the said not

Excerpt shown. Open the full act in Lexace.

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