KA state taxes in Karnataka

Professional tax in Karnataka

Karnataka levies professional tax on salaried employees and on persons carrying on a trade or profession, capped at Rs 2,500 a year by the constitutional limit. Employers register as a PTRC to deduct and pay employees' professional tax, and a self-employed person or business enrols under a PTEC for their own professional tax. The employee levy is slab-based on monthly salary, with lower earners exempt. Note that an employee can deduct the professional tax paid only if they are on the old regime, it is not deductible under the default new regime.

Karnataka professional tax is capped at Rs 2,500 a year (PTRC employer / PTEC self-employed); the employee deduction applies only on the old regime. (Karnataka Tax on Professions, Trades, Callings and Employments Act 1976; Constitution Article 276 (Rs 2,500 cap))

Stamp duty on property and documents

Stamp duty in Karnataka on the sale of immovable property is broadly in the 5 to 6% range (plus a cess and a registration fee), varying by property value band and location. Stamp duty also applies to a range of business documents such as lease and leave-and-licence agreements. Rates and any concessions are set by the state and revised periodically, so verify the current figure against the Department of Stamps and Registration before completing a property or lease transaction.

Karnataka stamp duty on property is broadly 5 to 6% plus cess and a registration fee; verify current rates against the state registration department. (Karnataka Stamp Act 1957; verify current rates and concessions against the Karnataka Department of Stamps and Registration)

Worked example

Ravi — Bengaluru, KA

small IT-services proprietor registering for professional tax (2026-27)

Ravi runs a small IT-services firm in Bengaluru with three employees and leases an office.

He enrols for a PTEC (his own professional tax, capped at Rs 2,500 a year) and a PTRC (to deduct and pay his employees' professional tax on the Karnataka slab). Stamp duty applies to his office lease agreement at the Karnataka rate. On income tax, if he is on the default new regime he cannot deduct the professional tax he pays, only an old-regime taxpayer can, so he factors that into his old-versus-new comparison.