Professional Tax is a state-level tax levied on income earned by way of profession, trade, calling, or employment. In Kerala, the responsibility for professional tax collection lies with the local municipal authorities such as corporations, municipalities, and panchayats. Whether you are a salaried employee, a business owner, a freelancer, or a company with employees on your payroll, understanding the documentation requirements for Professional Tax registration and return filing is crucial for compliance.
This blog provides a detailed checklist of the documents required for Professional Tax registration and filing in Kerala. Whether you’re registering as an employer or an individual, knowing what to prepare can save you time and avoid legal complications. If you’re looking for expert help, OurTaxPartner.com offers reliable and affordable Professional Tax services for businesses and individuals across Kerala.
Who is Liable to Pay Professional Tax in Kerala?
Professional Tax in Kerala is governed by the Kerala Municipality/Panchayat Raj Acts. The following categories are liable to pay Professional Tax:
- Employees: Salaried individuals whose employers deduct and pay Professional Tax.
- Employers: Businesses employing one or more persons and responsible for deducting tax and remitting it to the local body.
- Self-Employed Professionals: Chartered accountants, doctors, lawyers, consultants, and freelancers.
- Traders and Proprietors: Running commercial establishments under a trade license.
Employers are required to register separately and obtain a Professional Tax Registration Certificate and Enrollment Certificate, depending on their liability.
Documents Required for Professional Tax Registration in Kerala
For Employers (Companies, Firms, Proprietors)
- PAN card of the company or proprietor
- Certificate of Incorporation or Registration Certificate (as applicable)
- Partnership Deed (for partnership firms)
- LLP Agreement (for LLPs)
- Shop and Establishment Certificate or Trade License
- Employee list with designations, salary details, and joining dates
- Address proof of the business premises (electricity bill, rent agreement)
- GST Registration Certificate (if applicable)
- Authorization letter for the person signing the application
- Cancelled cheque or bank details of the business
- Aadhaar and PAN of the authorized signatory
For Self-Employed Professionals and Individuals
- PAN Card and Aadhaar Card
- Proof of profession – degree certificate, trade license, or registration with relevant council
- Residential address proof
- Business address proof (if operating from commercial premises)
- Photograph (passport-size)
- Mobile number and email ID
All documents must be clear, up-to-date, and consistent with the information filled in the registration form. Mismatched data can lead to rejections or delays.
Documents Required for Monthly/Annual Filing
Once registered, employers and individuals must file periodic returns to maintain compliance. The following documents are typically required during return filing:
- Salary sheet of employees (for employers)
- Professional Tax challan or proof of payment
- Bank statement reflecting tax deduction and payment
- Employee attendance and payroll summary (optional but helpful)
- Previous return acknowledgment copies (if applicable)
Penalty for Non-Compliance
Failure to register or file returns on time can result in monetary penalties. Kerala local bodies levy interest and fines for:
- Late registration
- Delayed return submission
- Non-payment or underpayment of tax
- Failure to deduct or deposit tax from employees
To avoid penalties, it is recommended to set up a proper tax calendar and consult professionals to manage your Professional Tax obligations.
Professional Tax Payment Slabs in Kerala
The tax rates are structured in slabs depending on the monthly or annual income of the taxpayer. While salaried employees have taxes deducted based on salary brackets, self-employed individuals pay a fixed amount annually.
Employers must register under two categories:
- Enrollment Certificate (EC): For the entity itself, paid annually
- Registration Certificate (RC): For deducting and paying tax on behalf of employees
Need Help with Registration or Filing?
If you find the registration and filing process confusing or time-consuming, let the experts at OurTaxPartner.com handle it for you. We provide end-to-end assistance including:
- Document collection and review
- Online form submission and coordination with local bodies
- Challan generation and payment tracking
- Monthly/Annual return preparation and filing
- Renewals and compliance management
Explore our service plans and get your Professional Tax registration done quickly and accurately at www.ourtaxpartner.com/filing-service/professional-tax-filing/.
Conclusion
Professional Tax is a mandatory compliance for all earning individuals and business entities in Kerala. Whether you are registering for the first time or filing your monthly returns, proper documentation is the key to a smooth process.
Make sure you’re compliant with local regulations and avoid unnecessary fines. Need professional help? Get in touch with OurTaxPartner.com today for reliable and affordable tax solutions tailored to your needs.
