Form 4A Filing in Karnataka: Annual Professional Tax Return Guide for Businesses
Professional Tax (PT) is one of the most overlooked yet mandatory state-level compliances for businesses operating in Karnataka. If your business is registered under the Karnataka Goods and Services Tax Act, 2017, it is mandatory to file an Annual Professional Tax Return in Form 4A on or before 30th April every year.
This requirement applies regardless of the business’s operational status. Non-compliance may result in interest, penalties, and legal consequences under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.
In this guide, we help you understand the scope of this obligation, the filing process, applicable penalties, and how LegalWiz.in can support you in staying compliant with Karnataka’s Professional Tax regulations.
Understanding Professional Tax in Karnataka
Professional Tax in Karnataka is levied on individuals and entities engaged in professions, trades, and employment. The tax is governed by the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and administered by the Commercial Taxes Department.
There are two components to PT registration:
- Professional Tax Enrollment Certificate (PTEC): Required for business entities and self-employed professionals
- Professional Tax Registration Certificate (PTRC): Required for employers to deduct and pay PT on behalf of employees
Every business entity must obtain a PTEC and pay a fixed amount of Professional Tax annually, currently set at INR 2,500 per place of business. This tax payment is reported by filing Form 4A.
Applicability of Form 4A Filing
Form 4A is a mandatory annual return to be filed by all entities in Karnataka that hold a Professional Tax Enrollment Certificate (PTEC).
Who Needs to File Form 4A?
- Any business entity registered under GST in Karnataka
- Entities including sole proprietorships, partnership firms, LLPs, private limited companies, public limited companies, and other forms of businesses
- Businesses holding a PTEC
- Entities with or without any business activity during the financial year
Even if your business did not operate or generate revenue during the year, filing Form 4A is compulsory if you hold a valid PTEC.
Non-filing is treated as a compliance lapse and attracts penalties under the Professional Tax Act.
Due Date and Frequency
Form 4A is required to be filed once every financial year, and the due date is fixed.
- Filing Frequency: Annual
- Due Date: On or before 30th April of the following financial year
- Applicable Period: April 1 to March 31 of the previous year
Example: For FY 2024-25, the return must be filed by 30th April 2025.
Late filing beyond this date may attract interest and penalties as defined under Sections 23 and 24 of the Karnataka PT Act.
Penalties for Non-Compliance
Karnataka’s PT law imposes strict consequences for late or non-filing of Form 4A:
- Interest (Section 23): Interest at the rate of 1.25% per month on the tax amount due
- Penalty (Section 24): Penalty up to 50% of the tax amount for delayed or non-filing
Apart from these, the department may initiate prosecution or suspend the enrollment certificate for persistent non-compliance.
Step-by-Step Filing Process for Form 4A
Form 4A must be filed online via the Karnataka PT e-filing portal: https://pt.kar.nic.in
Steps to File:
- Log in to the e-Prerana portal using your PTEC credentials
- Navigate to the Form 4A – Annual Return section
- Select the relevant financial year
- Enter required details including enrollment number, name, and tax amount
- Verify payment of the fixed tax (INR 2,500 per business location)
- Submit the form and download the acknowledgment
- Keep records of payment receipts and acknowledgments for audit purposes
If any discrepancy is found, the department may issue notices for clarification.
Documents Required for Filing
To file Form 4A, businesses must keep the following documents ready:
- Copy of the Professional Tax Enrollment Certificate (PTEC)
- GST Registration Certificate
- PAN of the business entity
- Proof of payment of INR 2,500 PT tax per location (challan)
- Login credentials for the PT portal
- Address proof of the business
Having these documents ensures quick and hassle-free filing.
Understanding the Role of Form 4A, Form 5A & Form 5 in Karnataka PT Compliance
While Form 4A is an annual return filed by businesses holding a Professional Tax Enrollment Certificate (PTEC), employers with Professional Tax Registration Certificate (PTRC) must file Form 5A on a monthly or quarterly basis for employee deductions. Additionally, they are also required to file an annual consolidated return in Form 5.
It’s essential to understand the distinction between these three forms to remain fully compliant under the Karnataka PT Act.
| Aspect | Form 4A | Form 5A | Form 5 |
| Applicability | Businesses with PTEC (no salaried employees) | Employers with PTRC who deduct PT from employees | Employers with PTRC |
| Purpose | Declare annual fixed professional tax (₹2,500 per location) | Report monthly/quarterly deductions of PT from employees | File a consolidated annual return for all deductions made during the financial year |
| Who Should File | Companies, LLPs, firms, proprietors with GST or business registrations | Employers deducting PT from employees (more than ₹15,000 salary/month) | Employers who have filed Form 5A throughout the year |
| Filing Frequency | Annually | Monthly (if PT liability > ₹5,000) or Quarterly (if PT liability ≤ ₹5,000) | Annually |
| Due Date | 30th April of the following financial year | 20th of the succeeding month or quarter | Within 60 days from end of the financial year (i.e., by 30th May) |
| Late Filing Penalty | Interest @ 1.25% per month + penalty up to 50% of the tax amount | Interest and penalty depending on delay duration | Same as Form 5A; risk of legal action for repeated default |
| Nil Return Required? | Yes | Yes, if no tax is deducted | Yes |
| Documents Required | PTEC certificate, PAN, GST registration, payment challan | PTRC, employee salary records, deduction sheets, PT challan | PTRC, summary of monthly/quarterly returns, PT challans |
| Filed By | Business owner or authorised consultant | Employer, payroll team, or compliance consultant | Employer or authorised compliance team/consultant |
| Filing Portal | e-Prerana Portal | e-Prerana Portal | e-Prerana Portal |
How LegalWiz.in Can Help
Staying compliant with PT laws doesn’t have to be complicated. LegalWiz.in offers dedicated services to ensure timely filing of your PT returns.
Our services include:
- PTEC registration for new businesses
- Annual Form 4A filing with confirmation receipts
- Timely reminders before due dates
- Expert assistance for any PT-related queries
- Coordination with the Commercial Taxes Department, if needed
Don’t miss the April 30 deadline – Contact us now to get your PT return filed on time.
Schedule a free consultation with LegalWiz.in today
Conclusion
Filing Professional Tax Return in Form 4A is a mandatory annual compliance for all GST-registered businesses in Karnataka. Despite its simplicity, non-compliance can result in avoidable penalties and interest.
By understanding the rules, keeping documents handy, and using expert assistance from LegalWiz.in, you can ensure a smooth and stress-free compliance experience every year.
Remember, April 30 is the final date – don’t leave it to the last minute.
Frequently Asked Questions
Is it mandatory to file Form 4A if there was no business activity in the financial year?
Yes. If you hold a valid PTEC, filing Form 4A is mandatory regardless of whether there was any business activity or turnover.
What is the amount of Professional Tax payable annually in Karnataka?
INR 2,500 per place of business.
Can the return be filed offline?
No. The return must be filed online through the e-Prerana portal.
What happens if I forget to file Form 4A on time?
You may be liable to pay 1.25% interest per month on unpaid tax and a penalty of up to 50% of the tax due.
What is the difference between PTEC and PTRC?
PTEC is for the entity’s own professional tax liability, while PTRC is for collecting and remitting PT on salaries paid to employees.
Can LegalWiz.in assist with PTRC and employee return filings too?
Yes. LegalWiz.in offers end-to-end professional tax services including both PTEC and PTRC registrations and filings.
Amisha Shah
Amisha Shah heads content at LegalWiz.in, where she transforms complex legal concepts into clear, actionable insights. With extensive experience in legal, fintech, and business services, she helps startups and enterprises navigate regulatory challenges through engaging, accurate content that empowers informed business decisions.
