Bengaluru, 23 Mar 

The Karnataka Legislative Assembly on Monday passed the Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Bill, 2026, aimed at simplifying compliance and reducing procedural burden on taxpayers.

Explaining the provisions, State Revenue Minister Krishna Byre Gowda said in the assembly that the amendment seeks to remove the requirement of filing returns after payment of professional tax, while retaining the existing flat rate structure.

“Once they pay Rs 2,500, there is no need to file returns again. It is a flat rate—Rs 2,500,” he said.

The Minister noted that professional tax is constitutionally mandated, with a ceiling of Rs 2,500 annually for individuals earning above Rs 25,000.

“Regardless of their income, the amount to be paid is only Rs 2,500,” he said.

He pointed out that despite paying the fixed amount, taxpayers were earlier required to file returns, leading to avoidable compliance burden. “For that, a chartered accountant has to prepare it. Our staff have to verify it. This results in wastage of time and creates an unnecessary compliance burden on people,” he said.

Gowda said the amendment aligns legal provisions with technological changes already introduced.

“Once Rs 2,500 is paid, there will be no further need to file returns. We are making provisions for this in the law as well,” he said.

He further said exemptions have been extended not only from tax payment but also from filing returns for certain categories.

“Senior citizens, those serving in the armed forces, and persons with disabilities. Now we are also removing the requirement of filing returns for them,” he said.

Highlighting the objective, the Minister said the move would improve governance and public convenience. “This will lead to ease of governance, ease of compliance, reduce unnecessary burden on people, and cut down unnecessary paperwork,” he said.

“With this simplification, it will be beneficial to the public. With this objective, we have brought this amendment,” he added.

Leader of the Opposition in the state assembly, R Ashoka, welcomed the bill.