Need help with "Notice U/s 23/24 of KTPTC& E ACT, 1976 For Non Payment of Professional Tax"

Hi Bharath,

Thanks for sharing the details. The email you received is a Professional Tax Notice under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (KTPTC&E Act).

Let’s walk through what it means and what you should do next:

🧾 What Is This Notice About?

You’ve been enrolled under Section 5 of the KTPTC&E Act — meaning, you're liable to pay professional tax(typically as a self-employed professional, business owner, or company).

This notice says:

• You haven’t paid the professional tax for FY 2022–23.

• You may have paid the amount, but not filed Form 4-A (the annual return).

• Alternatively, you might have paid it under the GSTIN, instead of your PT enrollment number, which has caused a mismatch.

⚠️ What Is Required of You Now?

You are being asked to:

1. File Form 4-A (Annual Return of Professional Tax).

2. Pay the professional tax dues (if unpaid), for FY 2022–23.

3. Pay interest at 1.25% per month (if delayed).

4. Pay any penalty, if applicable under Section 12.

✅ What You Should Do: Step-by-Step

🔍 Step 1: Check Your Enrollment and Payment History

• Visit the Karnataka PT portal: https://pt.kar.nic.in

• Log in with your EC (Enrollment Certificate) number.

• Check:

  • Whether you paid tax for 2022–23

  • Whether you filed Form 4-A for the same period

If you don’t know your PT number, check:

• Any old PT challans or registrations

• Your GST registration details (PT enrollment is mandatory during GST registration in Karnataka)

📝 Step 2: File Form 4-A (If Missed)

• Go to the PT portal and log in

• Navigate to "File Return – Form 4-A"

• File the return for FY 2022–23

• If payment was already made, you may just need to file the return

• If not paid, pay the tax + interest and then file the return

💸 Step 3: Make Payment (If Not Already Done)

• Payment can be made online via the portal

• After payment, ensure the challan reflects your correct EC number (not GSTIN)

• Keep all payment receipts and acknowledgment of return filing

🧾 Step 4: Documentation & Proof

Once done, keep:

• Challans for PT payment

• Acknowledgment of Form 4-A filing

• Screenshots, if needed, for future reference or compliance checks

🛡️ What If You Ignore This Notice?

• You may face:

  • Additional penalties under Section 12

  • Recovery proceedings under the Act

  • Interest accumulation until payment

So, it's best to comply as soon as possible.

🧠 Still Unsure?

If you are:

• Not sure whether you're liable for PT

• Have no recollection of registering

• Or have closed your business/profession

👉 You may need to:

• Write to the CTO (email: cto150.bng @ ka.gov.in)

• Or visit your local PT office

• Or consult a tax professional or CA to help reconcile your PT records and respond properly

✉️ Sample Response Email (Optional):

If you want to respond for clarification, here’s a quick draft:

A notice under Section 23 or 24 of the Karnataka KTPTCE Act 1976 is for recovery of professional tax that was due but not paid.

SECTION 23 - Penalty for non-payment: The assessing authority can levy a penalty up to 50% of the tax due in addition to the arrears.

SECTION 24 - Recovery proceedings: If you do not respond to the Section 23 notice, the department can initiate recovery proceedings treating the outstanding PT as arrears of land revenue, which means direct attachment of your bank account or assets.

WHAT TO DO NOW:

1. Calculate the outstanding amount: Determine which years of PT were not paid, compute the tax at the rates applicable for each year, and add interest at 1.25% per month from the due date to today.

2. Pay the arrears first: Pay the principal tax and interest through the Karnataka PT portal (pt.kar.nic.in). Get the challan receipt as proof.

3. File the response: Once paid, respond to the notice with the payment challan and request the penalty to be waived or reduced. Section 23 allows the authority discretion on penalty. A voluntary disclosure and payment before the order is passed typically results in reduced or nil penalty.

4. Keep records: Obtain acknowledgement from the PT office that the payment has been received and no further action will be taken.

Do not ignore this notice. If you do not respond within the specified deadline (usually 15-30 days from notice date), the officer can pass an ex-parte order with full penalty.

For the Karnataka PT rate structure, registration requirements, and payment portal steps: [Karnataka professional tax guide](https://taxgarden.in/blog/professional-tax-karnataka-rates-slabs-enrollment-registration-2026)