With a view to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (“Act”) and to give effect to the proposals made in the para 476 of Budget Speech for the year 2025- 2026, the Karnataka Legislative Assembly has introduced the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2025 (“Bill”). The provisions of the Bill, if enacted, are slated to gain effect from 1st April, 2025.
Key Highlights:
To increase the rate of tax on professions, trades, callings and employments from Rupees 2400/- to Rupees 2500/- per annum on salary or wage earners whose salary or wage or both, as the case may be, for a month is rupees 25,000 and above. The rate of tax prescribed under serial number 1 (column 3) of the Schedule (Rates of tax on professions, trades, callings and employments) is proposed to be increased as follows:
(i) Rs.200-00 per month (except for the month of February);
(ii) Rs.300-00 for the month of February.
The Notification is linked below for your ease of reference.
Source: Karnataka Legislative Assembly
