Karnataka government allows Tax exemptions under Professions, Trades, Callings, and Employments Act

LegalitySimplified

The Government of Karnataka has recently issued a notification on 13 July, 2023 on a range of
tax exemptions under the Karnataka Tax on Professions, Trades, Callings, and Employments
Act, 1976.

One of the primary beneficiaries of these tax exemptions is the owners of transport vehicles, excluding autorickshaws, who possess no more than two vehicles. Whether operating the vehicles themselves or through granted permits, they can now enjoy a welcome respite from the tax obligations. Similarly, individuals holding permits for two or fewer taxies or three- wheeler goods/passenger vehicles are also eligible for tax relief, encouraging small-scale entrepreneurs and easing their operational costs.

The government is providing support to physically challenged individuals with a total permanent disability of not less than 40% in both upper and lower extremities. These individuals are required to present a certificate from the Head of the Orthopaedic Department of a Government Civil Hospital in the state to avail themselves of the tax exemption. Additionally, the government has extended a helping hand to families with only one child who have undergone sterilization operations. The District Surgeon of a
Government Civil Hospital can issue a certificate confirming the procedure, thereby making them eligible for tax relief.

Former servicemen, other than those covered in other categories, are also granted tax exemptions, recognizing their valuable contributions and service to the nation. Individuals covered under the first category of transport vehicle owners, but with visual or hearing impairments, are also acknowledged and included in the list of beneficiaries, ensuring that the tax exemptions reach those who may need them the most.

Moreover, foreign technicians employed in the state, whose appointments have received approval from the Government of India for income tax exemptions, can now benefit from tax relief for up to two years from their date of joining duty, further incentivizing skilled international professionals to contribute to the state’s growth. Charitable and philanthropic hospitals or nursing homes located below the Taluk level in all districts of the state, except Bengaluru, Ramanagara, and Bengaluru Rural District, can also look forward to tax exemptions, enhancing their ability to serve the underprivileged and vulnerable populations.

Directors of companies registered in Karnataka and nominated by financing agencies owned or controlled by the State Government or other statutory bodies are eligible for tax relief, supporting their roles in public service and governance. Furthermore, members of the Armed Forces, both combatant and civilian non-combatant, governed by the Army Act, 1950, the Navy Act, 1957, and the Air Force Act, 1950, can avail tax exemptions, acknowledging their sacrifices and dedication to the nation’s security.

Institutes teaching Kannada or English shorthand or typewriting are also recognized for their contribution to language education and are eligible for tax relief. Additionally, individuals running educational institutions, tutorial colleges, and institutions teaching shorthand or typewriting (excluding professional and technical educational institutions) are granted tax exemptions, fostering educational growth and accessibility.

Personnel belonging to the Central Para-Military Forces (CPMF) are also included in the list of beneficiaries, recognizing their commitment to maintaining peace and order. Finally, individuals running educational institutions offering classes up to the twelfth standard or pre-university education can now benefit from tax exemptions for their respective branches, promoting education at the grassroots level.

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