Timelines for filing of monthly returns and payment of tax by enrolled person under Karnataka PTAX Act

The Government of Karnataka has issued the Karnataka Tax on Professions, Trades, Callings and Employments (Removal of Difficulties) Order, 2023 (“2023 Order”) under the provisions of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (“Act”).

Key Takeaways:

1. Section 6A of the Act states that every employer registered under this Act, has to furnish to the assessing authority within 20 days of the expiry of a month, a statement in the prescribed form, showing therein the salary and wages paid by him and the amount of tax deducted by him in respect thereof during the month immediately preceding that month.

The present 2023 Order adds a proviso to this section stating that for the month of April 2023, the statement has to be submitted on or before 31st day of May, 2023.

2. Section 10 of the Act mandates every enrolled person to pay tax in the prescribed manner, as per the following timeline:

The 2023 Order inserts a new proviso stating that for the Financial year 2023-24, in respect of person who stands enrolled before the commencement of the said year, the payment of the amount of tax due has to be paid before 31st May, 2023 instead of 30th April, 2023.

Background:

The Federation of Karnataka Chambers of Commerce and Industry have represented that payment of Professional Tax is being delayed due to technical glitches in the Professional Tax portal and hence it has become difficult for the registered persons and enrolled persons to file the returns and make the payment of tax within the time limit specified above and there is requirement to remove this difficulty by extending the time limit for filing of the returns and making such payment. In light of this, the present 2023 Order has been issued.

Source: Government of Karnataka