Section 34

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Power to remove difficulties. SCHEDULE. * * * * STATEMENTS OF OBJECTS AND REASONS I Act 35 of 1976.- In order to augment the revenues of the State, it is considered necessary to levy a tax on professions, trade, callings and employments. Salary and wage earners having a monthly income of Rs. 500 and above will be required to pay the said Tax, according to a graded scale. Self-employed persons will be required to pay fixed amounts ranging from Rs. 50 to Rs 250 per year, the levy being based on broad criteria related to the earning capacity of different groups of profession. Provision is made for registration of employers and enrolment of self-employed persons and the procedure for the levy and collection of the Tax is laid down. Provisions is also made for appeals and other ancillary matters for the administration of the Tax. With the levy of Profession Tax by the State Government, the powers which the local bodies to levy this tax have at present is proposed to be withdrawn. But, provision is proposed for reimbursement of the loss of revenue to such of the local bodies as are levying the tax at present. Hence this Bill (Obtained from L.A. Bill No. 34 of 1976.) II Amending Act 8 of 1981.- At present the Insurance Agents are liable to pay profession tax according to their standing in the profession and the places at which they carry on the profession. It was represented that the existing provisions cause hard-ship to them. On a Careful consideration of the question, it is proposed to allow them to pay tax on a slab system, similar to that provided for salary or wage earners under the Act. (Obtained from L.A. Bill No 39 of 1981) III Amending Act 13 of 1982.- In the budget speech for the year 1982–83, the Hon’ble Minister of Finance and Tourism, has indicated several proposal in order to augment the revenue of the State. This Bill seeks to give effect to the said proposals. Opportunity is taken to make some other minor amendments. 3 (Published Karnataka Gazette (Extraordinary) Part IV-2A, as No. 223, dated 27-3-1982, p. 31.) IV Amending Act 26 of 1982.- It is decided that there should be some minimum period of exercise of profession in year for attracting the tax liability under the Karnataka Tax on Professions, Traders, Callings and Employment Act , 1976. It is considered desirable to fix up the minimum period at 120 days in a year. According to the proviso of item (xi) of section 94 of the Karnataka Municipalities Act, a tax under item (ix) shall not be levied where the Municipality levies of profession tax. As professions tax is now being levied in all cases, item (ix) of the proviso thereto of the Karnataka Municipalities Act are being deleted. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 10-6-1982 as, No 469.) (Obtained from L.A. Bill No. 23 of 1982.) V Amending Act 1 of 1985.- Amendment to Sl. No. 1 of the Schedule to the Act is proposed to incorporate the decision of the Government to exempt all wage earners who earn a wage or salary of less than Rs.1,500/- per month. Opportunity is also taken to make certain other amendments for rationalising the existing provisions. Hence this Bill. (Obtained from L.A. Bill No. 31 of 1983) VI Amending Act 29 of 1985.- In his Budget Speech for 1985-86 the Chief Minister indicated that salary or wage earners whose basic salary/ wage is less than Rs. 1,200/- per month and dealers whose annual turnover in less than Rs. 75,000/- would be exempted from payment of Professional tax and that some more professions would be brought into the tax net. Hence this Bill. (Obtained from L.A. Bill No. 25 of 1985) VII Amending Act 13 of 1986.- Since June, 1986, the worker relating to Profession Tax in respect of dealers registered under the Karnataka Sales Tax Act, 1957, is entrusted to the respective assessing authorities. It would be convenient for the officers who collect Registration Fee under the Karnataka Sales Tax Act, 1957 during the month of April every year, to collect simultaneously, the Profession Tax also for the dealers. It would be convenient for the dealers also. Hence, it is proposed to advance the last date for payment in respect of the enrolled persons from 30th September of the year to 30th April of the year. (Obtained from L.A. Bill No. 20 of 1986.) VIII Amending Act 13 of 1987.- To give effect to the proposals made in the Budget Speech, it is proposed to amend the Karnataka Tax on Professions, trades, Calling and Employments Act, 1976. Hence the Bill. (Obtained from L.A. Bill No. 19 of 1987.) IX Amending Act 15 of 1989.- To give effect to the proposals made in the Budget speech it is proposed to amend the Karnataka Tax on Professions, Traders, Callings and Employments Act, 1976. Opportunity is also taken to amend section 11 of the Act to exempt from payment of balance of interest payable upto 31st March 1987 in respect of tax paid belatedly and also the interest payable on taxes due upto 31st March, 1987 if the taxes are paid on or before 30th June 1989. Hence the Bill. (Obtained from L.A. Bill No. 6 of 1989) X Amending Act 5 of 1990.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Tax of Professions, Traders, Callings and Employments Act, 1976. Opportunity is also taken to rationalise certain provisions of the said Act. Hence the Bill. (Obtained from L.A. Bill No. 2 of 1990) XI Amending Act 13 of 1991.- To give effect to the proposal made in the Budget Speech, it is considered necessary to amend the Karnataka Tax on Professions, Traders, Callings and Employments Act, 1976. Hence the Bill. (Obtained from L.A. Bill No. 8 of 1991.) 5 XII Amending Act 5 of 1992.- To give effect to the proposal made in the Budget Speech, it is considered necessary to amend the Karnataka Tax on Professions, Traders, Callings and Employments Act, 1976. Opportunity is also taken to make consequential amendment to the said Act. Hence the Bill. (Obtained from L.A. Bill No. 13 of 1992) XIII Amending Act 5 of 1993.- Consequent to the re-designation of posts in the Commercial Tax Department, it has become necessary to make suitable amendments in the relevant Taxation Laws. The full bench of our High Court in Shah Wallace case while overruling a Division Bench judgment of our High court in Janardhanacharya’s case had held that the notifications issued under section 8A of the Karnataka Sales Tax Act, 1957 become inoperative when the relevant provisions of the Act are subsequently amended by way of insertion of any entry relating to the class of goods to which exemptions were given by the notifications. Therefore, it was considered necessary to suitably amend the said Act, to save the notifications already issued. As the matter was urgent and both the Houses were not in session, the amendments were carried-out by promulgation of the Karnataka Taxation Laws (Amendment) Ordinance, 1992. This Bill seeks to replace the above Ordinance, Hence the Bill. (Obtained from LA Bill No. 29 of 1992.) XIV Amending Act 11 of 1993.- It is considered necessary to amend the Karnataka tax on Luxuries (Hotel and Lodging Houses) Act, 1979, the Karnataka Tax on Professions, Traders Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958 and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the budget speech and matters connected therewith. Hence the Bill. (Obtained from L.A. Bill No. 15 of 1993.) XV Amending Act 18 of 1994.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Entry of Goods Act, 1979, the Karnataka Entertainments Tax Act, 1958, the Mysore Betting Tax Act, 1932 and the Karnataka Agricultural Income Tax Act, 1957 to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from LA Bill No. 12 of 1994.) XVI Amending Act 6 of 1995.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainment Tax Act, 1958, the Karnataka Tax on Entry of Goods Act, 1979, Karnataka Tax on Luxuries, (Hotels and Lodging House) Act, 1979, the Mysore Betting Tax Act, 1932 and to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from LA Bill No. 4 of 1995.) XVII Amending Act 5 of 1996.- It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976, the Karnataka Entertainments Tax Act, 1958, the Karnataka Agricultural Income Tax Act, 1957, and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill. (Obtained from LA Bill No. 12 of 1996.) XVIII Amending Act 7 of 1997.- It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Excise Act 1966 (Karnataka Act 21 of 1966), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Mysore Betting Tax Act 1932 (Mysore Act IX of 1932), and to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill. 7 (Obtained from LA Bill No. 12 of 1997.) XIX Amending Act 3 of 1998.- It is considered necessary to amend the Karnataka taxation Laws Amendment Act, 1997 (Karnataka Act 7 of 1997), the Karnataka Tax on Entry of Goods Act 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Luxuries (Hotel, Lodging Housed and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) and to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill. (Obtained from L.A. Bill No. 6 of 1998.) XX Amending Act 5 of 2001.- To give effect to the proposals made in the budget speech, it is considered necessary to amend the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Luxuries Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 (Karnataka Act 35 of 1976) and the Karnataka Agricultural Income Tax, 1957 (Karnataka Act 22 of 1957). Certain consequential amendments are also made. Hence, the Bill. (Vide LA Bill No. 7 of 2001 File No. DAPL 9 SHASANA 2001) XXI Amending Act 7 of 2003.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Agricultural Income Tax Act, 1957, The Karnataka Tax Act, 1957, the Karnataka Entertainment Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976, the Karnataka Tax on Luxuries Act, 1979 on Entry of Goods Act, 1979 and the Karnataka Electicity (Taxation on Consumption) Act, 1959. Hence, the Bill. (Vide LA Bill No. 9 of 2003 File No. SAMVYASHAE 17 SHASANA 2003) XXII Amending Act 13 of 2003.- It is considered necessary to prepare upto date Codal Volumes of the Karnataka Acts and to repeal all the spent Acts and amendment Acts from time to time. The Government constituted One-man Committee for the above purpose. The Committee has reviewed the Karnataka Acts for the period from 1.11.1956 to 31.12.2000 and has proposed the "Repealing and Amending Bill, 2002" which seeks to repeal the following types of Acts,- (i) Acts which amended the Karnataka Acts whether they are now in force or not; (ii) Acts which amended regional Acts which are no longer in force; (iii) Appropriation Acts as they are spent Acts; (iv) Acts which have been struck down or by necessary implication struck down by the Courts; (v) Acts which are by implication repealed by Central Acts; (vi) Acts which are temporary and spent enactments; and (vii) Acts which amend the Central Acts and regional Acts which are in force. The Bill does not include Acts which are already repealed expressly. This Bill also seeks to amend certain Acts which are considered necessary. Hence the Bill. [L.C. BILL No. 4 OF 2002] [Various entries of List II and III of the Seventh Schedule] XXIII Amending Act 26 of 2004.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 o 1957), the Karnataka Entertainment Tax Act, 1958, (Karnataka Act 30 of 1958), , the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976, 1979, (Karnataka Act 35 of 1976) the Karnataka Tax on Luxuries Act, and the Karnataka on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979). 9 Opportunity is also taken to rationalize certain provisions of the said Acts and also to codify and make certain consequential emendments to implement reliefs already announced. Hence, the Bill. (Vide File No. SAMVYASHAE 23 SHASANA 2004) XXIV Amending Act 11 of 2005.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957(Karnataka Act 25 of 1957), the Karnataka Entertainments Tax Act, 1958(Karnataka Act 30 of 1958), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976(Karnataka Act 35 of 1976), the Karnataka Tax on Entry of Goods Act, 1979(Karnataka Act 27 of 1979), the Karnataka Tax on Lotteries Act, 2004 (Karnataka Act 3 of 2004), the Karnataka Special Tax on Entry of Certain Goods Act, 2004 (Karnataka Act 29 of 2004) and the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004). Opportunity is also taken to rationalize certain provisions of the said Acts. Hence the Bill. XXV Amending Act 5 of 2006.- It is considered necessary to amend the Karnataka Agriculture Income Tax Act, 1957, the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposal made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. [ L.A. Bill No. 6 of 2006 ] XXVI Amending Act 5 of 2007.- It is considered necessary to amend the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith and also to amend the Karnataka Sales Tax Act, 1957 to provide for a provision for empowering the State Government to withdraw any notification issued under section 8-A either prospectively or retrospectively to give effect to the decision taken by the State Government with regard to discontinuance of sales tax based incentives to industries as a part of national consensus to bring in reforms in State taxes. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A. Bill No. 22 of 2007] [Entries 54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] XXVII Amending Act 6 of 2008.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith or incidental thereto. Opportunity is also taken to rationalise taxation and make certain consequential amendments also. Hence the Bill. (LA Bill No. 3 of 2008, File No. DPAL 11 Shashana 2008) [Entry 60 of List II of the Seventh Schedule to the Constitution of India.) XXVIII Amending Act 7 of 2009.- It is considered necessary to amend the Mysore Betting tax Act, 1932, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Luxuries Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. (LA Bill No. 21 of 2009, File No. DPAL 13 Shashana 2009) [Entries 60 and 62 List II of the Seventh Schedule to the Constitution of India.) XXIX Amending Act 5 of 2010.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries 11 Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith and specifically to, (i) amend the Karnataka Sales Tax Act, 1957 to provide for levy of tax on supply of goods by an association or a body of persons like clubs, registered or unregistered, to its members retrospectively from second day of February, 1983 from which day by the forty-sixth amendment to the Constitution of India, the State Legislature was empowered to levy tax on such transactions so as to remove doubts raised in this regard because of the judgment of the Hon’ble High Court of Karnataka in the case of Century Club and Others versus The State of Mysore and another, declaring the provisions made in the Karnataka Sales Tax Act, 1957 before such constitutional amendment for levy of tax on such transactions as void and inoperative. (ii) provide for collection of entry tax in advance under the Karnataka Tax on Entry of Goods Act, 1979 at the point of sugar factories selling sugar to dealers who subsequently cause entry of such sugar into any local area in the State. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A.Bill No. 9 of 2010, File No.DPAL 12 Shasana 2010] [Entries 52,54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] XXX Amending Act 15 of 2011.- It is considered necessary to amend the Mysore Betting Tax Act, 1932, the Mysore Race Courses Licensing Act, 1932, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to, (i) extend the application of the Betting Tax Act, 1932 and the Mysore Race Courses Licensing Act, 1952 for the whole of State of Karnataka; (ii) to omit certain redundant provisions and the Schedules in the Betting Tax Act, 1932 and the Mysore Race Courses Licensing Act, 1952; (iii) to repeal certain redundant enactments; and (iv) give effect to the proposals made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A. Bill No.11 of 2011, File No. Samvyashae 13 Shasana 2011] [Entries 34,52, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] XXXI Amending Act 18 of 2012.- It is considered necessary to amend the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Tax on Luxuries Act, 1979 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A. Bill No. 4 of 2012, File No. Samvyashae 24 Shasana 2012] [Entries 46, 52, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] XXXII Amending Act 27 of 2013.- It is considered necessary to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters connected therewith. Hence the Bill. [L.A. Bill No.9 of 2013, File No. Samvyashae 17 Shasana 2013] [Entries 52 and 60 of List II of the Seventh Schedule to the Constitution of India.] XXXIII Amending Act 53 of 2013.- It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Tax on Entry of Goods Act, 1979 to give effect to the proposals made in the Budget and matters 13 connected therewith particularly to specify that any clarification issued by the Commissioner of Commercial Taxes under the Karnataka Sales Tax Act, 1957 or the Karnataka Tax on Entry of Goods Act, 1979 overrides the clarification of the Authority for Clarification and Advance Rulings. Certain consequential and incidental amendments are also made. Hence the Bill. [L.A. Bill No. 07 of 2013, File No. Samvyashae 36 Shasana 2013] [Entries 52, 54, 60 and 62 of List II of the Seventh Schedule to the Constitution of India.] XXXIV Amending Act 14 of 2015.- It is considered necessary to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and the Karnataka Agricultural Income Tax Act, 1957 to give effect to the proposals made in the Budget and matters connected therewith and specifically to, (i) provide the benefit of exemption from payment of Profession tax to citizens who have attained sixty years of age and are considered as Senior Citizens. (ii) provide relief from payment of Profession tax by low salaried persons. (iii) provide upward revision of replanting allowances considering the escalation in replantation expenditure incurred by coffee planters. Hence, the Bill. [L.A. Bill No. 07 of 2015, File No. Samvyashae 16 Shasana 2015] [Entries 46 and 60 of List II of the Seventh Schedule to the Constitution of India.] XXXV Amending Act 05 of 2016.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Tax on luxuries Act, 1979 (Karnataka Act 22 of 1979) and the Karnataka Tax on Entry of Goods Act, 1979(Karnataka Act 27 of 1979). Opportunity is also taken to rationalize certain provisions of the said Acts and repeal The Karnataka Agriculture Income-Tax 1957 (Karnataka Act 22 of 1957). Hence the Bill [L.A. Bill No.11 of 2016, File No. Samvyashae 19 Shasana 2016] [entries 46, 52,60 and 62 of List II of the Seventh Schedule to the Constitution of India.] XXXVI Amending Act 06 of 2018.- It is considered necessary to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, to give effect to the proposal made in the Budget 2018-19 and matters connected therewith and specifically to,- (i) enhance the turnover limit for levy of Profession Tax in respect of Contractors executing work contracts, Persons registered and Persons licenced or approved as Contractors in Railways, State or Central Government etc., in tune with the threshold limit for registration under the Karnataka Goods and Services Tax Act, 2017. (ii) to exclude Agriculturists growing plantation crops as defined in the Agricultural Income-tax Act,1957 (Karnataka Act 22 of 1957) which has been repealed with effect from 01-04-2016 by the Karnataka Taxation Laws (Amendment) Act,2016 (KARNATAKA ACT NO.5 OF 2016). (iii) to exclude Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association who have attained the age of sixty years from the benefit of claiming exemption from Professional Tax under proviso to sub-section (2) of Section 3. Hence the Bill. [L.A. Bill No.59 of 2018, File No. Samvyashae 10 Shasana 2018] [entry 60 of List II of the Seventh Schedule to the Constitution of India.] XXXVII Amending Act 14 of 2023.-The Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 was enacted to make a provision for the levy and collection of tax on Professions, Trades, Callings and Employments by the Government of Karnataka. However, after implementing the GST Act, certain difficulties were faced. In order to overcome the difficulties, it is proposed to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (Karnataka Act No. 35 of 1976). 15 In the Budget speech for the year 2023-2024, in para 443, it is proposed the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2023, inter alia, provides for the following, namely:- (1) to insert new clause (aa) after clause (a) in section 2, so as to provide for a definition for the term “agent” to mean a person acting on behalf of another person in the course or furtherance of business. It further seeks to insert new clause (ab) after clause (aa) in section 2, so as to provide for a definition for the term “assessment” for the purposes of this Act, to mean determination of tax liability under this Act and includes self- assessment, reassessment and best judgment assessment. It further seeks to amend clause (h)in section 2, in the explanation to also include a proprietary concern to be deemed person to remove ambiguity in levying tax in case of a proprietary concern. (2) Seeks to amend sub-section (2) of section 9,so as to reduce penalty where the escape from the assessment was due to wilful non-disclosure of information or attempt at evading the tax by the employer or the person from one and a half time the tax to equal to one hundred percent of the tax in line with GST Act. (3) Seeks to amend sub-section (6) of section 10, so as to reduce interest rate where default is committed in payment of tax so deducted by a person making deduction from two percent per month to one and a half percent per month in line with the GST Act. (4) Seeks to amend sub-section (2) of section 11 so as to increase the interest rate where any employer fails to deduct the tax at the time of payment of the salary or wage, or after deducting fails to pay the tax from one and a quarter percent per month to one and a half percent per month in line with the GST Act. (5) Seeks to amend section 12 so as to reduce the penalty for non-payment of tax by a registered employer within the required time from an amount not exceeding fifty percent to a fixed amount of ten percent whether or not a reasonable cause is present. (6) To substitute the Schedule to suit the present circumstances in the light of implementation of GST and also to rationalise the tax payable. Further the explanations are also substituted to remove ambiguity. Hence, the Bill [L.A. Bill No. 06 of 2023, File No. SAMVYASHAE 06 SHASANA 2023] [Entry 60 of List II of the Seventh Schedule to the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No.113 in part-IVA dated:14.03.2023] * * * XXXVIII Amendment Act 33 of 2025:- It is considered necessary further to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976) to give effect to the proposals made in the para 476 of Budget Speech for the year 2025-2026 and to increase rate of tax 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. Hence, the Bill. [L.A. Bill No.08 of 2025, File No. SAMVYASHAE 08 SHASANA 2025] [Entry 60 of List II of the Seventh Schedule to the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No.232 in part-IVA dated:15.04.2025] XXXIX Amendment Act 22 of 2026:- The Karnataka Tax on Professions, Trades, Callings and Employments Act 1976 (Karnataka Act 35 of 1976) provides for levy and collection of tax on professions, trades, callings and employments and also prescribes procedural requirements for enrolment and filing at returns by enrolled persons. Under the existing provisions of section 10 of the said Act, every enrolled person is required to furnish a return, even in cases where the enrolled person has paid the maximum tax prescribed under the said Act for the relevant year. This has resulted in avoidable compliance burden on taxpayers and unnecessary administrative processing by the Commercial Tax Department, without any corresponding revenue benefit. With a view to simplifying compliance, reducing paperwork, and facilitating ease of doing business, it is proposed to deem the furnishing of return in cases where an enrolled person has paid the tax payable by him under the Act for a year. Further, it is also proposed to empower the 17 Commissioner to exempt, by notification, specified classes of enrolled persons from furnishing returns, subject to such conditions and safeguards as may be specified in the notification. Proposed amendment seeks to streamline tax administration, improve voluntary compliance, and enable efficient deployment of departmental resources. Hence, the Bill. [L.A. Bill No. 08 of 2026, File No. SAMVYASHAE 08 SHASANA 2026] [Entry 60 of List II of the Seventh Schedule to the Constitution of India] [Published in Karnataka Gazette Extra-ordinary No.250 in part-IVA dated:27.03.2026] KARNATAKA ACT NO. 35 OF 1976 (First published in the Karnataka Gazette Extraordinary on the Twenty-ninth day of April 1976) THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1976 (Received the assent of the Governor on the Twenty-eighth day of April 1976) (As Amended by Acts 8 of 1981, 13 of 1982, 26 of 1982, 1 of 1985, 29 of 1985, 13 of 1986, 13 of 1987, 15 of 1989, 5 of 1990, 13 of 1991, 5 of 1992, 5 of 1993, 11 of 1993, 18 of 1994, 6 of 1995, 5 of 1996, 7 of 1997, 3 of 1998, 5 of 2001, 7 of 2003, 13 of 2003, 26 of 2004, 11 of 2005, 5 of 2006, 5 of 2007, 6 of 2008, 7 of 2009, 5 of 2010, 15 of 2011, 18 of 2012, 27 of 2013, 53 of 2013, 14 of 2015, 05 of 2016, 06 of 2018, 14 of 2023, 33 of 2025 and 22 of 2026) An Act to provide for the levy and collection of tax on professions, trades, callings and employments in the State. WHEREAS it is expedient to provide for the levy and collection of a tax on professions, trades, callings and employments; BE it enacted by the Karnataka State Legislature in the Twenty-seventh Year of the Republic of India as follows :-