Karnataka PT Amendment 2026: Annual Tax Payment and Deemed Return

Karnataka Act 22 of 2026 amends section 10 of the professional-tax law from 1 April 2026. An enrolled person who pays the tax payable for a year is treated as having furnished that year’s return.

What the amendment does

The Act was published on 27 March 2026. It adds a deemed-return provision for enrolled persons and empowers the Commissioner to exempt specified classes of enrolled persons from return filing, with conditions and safeguards. The Commissioner’s separate notification dated 1 April 2026 should be read for those class-based exemptions.

This record addresses enrolment compliance. It does not set revised employee salary slabs or establish that every employer payroll return has been removed.

Employer action

1. Identify whether the obligation belongs to the enrolled-person account or to the employer’s employee-deduction account.
2. Retain the annual tax computation, payment acknowledgement, tax year and account reference together so the deemed-return position can be demonstrated.
3. Update the internal compliance checklist after confirming how the relevant portal account records the annual payment. Keep separate evidence for any class-based exemption.

Frequently asked questions

What evidence should an enrolled person keep?

Keep the calculation and successful payment receipt for the relevant year, together with the enrolment identifier and any reconciliation notes.

Does the amendment itself revise salary PT slabs?

Its operative change is to section 10 return treatment. Use the applicable rate schedule separately for tax calculations.

Where are the class-based return exemptions listed?

The Commissioner’s notification PT/CR./09/2025-26 dated 1 April 2026 sets out those classes and supporting documents.

Source and reference

Government source: Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2026. Companion instrument: Commissioner’s notification of 1 April 2026.

Related compliance references

• Karnataka Professional Tax Rates from April 2025
• Professional tax library