Revised Employment Tax Rates for Panchayats and Municipal Corporations in Kerala Notification Dated 27.June.2024, Effective from 01.October.2024

As per the latest notification issued by the Local Self-Government Department (LSGD), Kerala, the employment tax slabs under the Kerala Municipality Act, 1994 and Kerala Panchayat Raj Act, 1994 have been revised. These changes will be applicable from October 1, 2024, and will affect individuals based on their income range. Below are the key updates on the revised rates:

 Key Highlights of the Revised Rates:

1. Income up to Rs. 11,999:
There is no employment tax applicable for this range, continuing from the previous structure.
   
2. Income from Rs. 12,000 to Rs. 17,999: The tax rate has seen a significant increase from Rs. 120 to Rs. 320.

3. Income from Rs. 18,000 to Rs. 29,999: The tax rate has been revised from Rs. 180 to Rs. 450.

4. Income from Rs. 30,000 to Rs. 44,999: This category sees an increase from Rs. 300 to Rs. 600.

5. Income from Rs. 45,000 to Rs. 99,999: A uniform rate of Rs. 750 is now applicable, as opposed to the previous range of Rs. 450 to Rs. 750.

6. Income from Rs. 1,00,000 to Rs. 1,24,999: There is no change in this slab, maintaining the rate at Rs. 1,000.

7. Income from Rs. 1,25,000 and above: The highest tax rate of Rs. 1,250 remains unchanged.


Implementation Timeline:
The revised rates will be effective from the second half of the financial year, starting on October 1, 2024. All Panchayats and Municipal Corporations in Kerala are directed to implement these changes as per the amendments made to the relevant Acts and Rules, including the Kerala Municipality (Employment Tax) Rules, 2005 and Kerala Panchayat Raj (Employment Tax) Rules, 1996.

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