Improving the Professional Tax Portal in Karnataka: Key Issues and Solutions

Introduction

The Karnataka State Chartered Accountants Association (KSCAA) has highlighted several crucial issues concerning taxpayers utilizing the Professional Tax website to the Government of Karnataka. Paying Professional Tax is a fundamental obligation for individuals and businesses engaged in various professions and trades, making the efficiency of the tax portal essential for compliance. Despite the introduction of a visually appealing and enhanced website by the Professional Tax Department, significant operational challenges remain, hindering user experience and timely tax compliance.

About KSCAA

The Karnataka State Chartered Accountants Association (R) (referred to as ‘KSCAA’) is an established association for Chartered Accountants, registered under the Karnataka Societies Registration Act in 1957. The KSCAA is dedicated to the welfare of Chartered Accountants and represents their interests before regulatory authorities to address professional challenges faced by both Chartered Accountants and the business community.

Key Issues Concerning the Professional Tax Website

In accordance with The Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 (“the Act”), we would like to submit the following concerns regarding updates and enhancements needed for the Professional Tax website:

1. Delay in Enrollment Registration

Currently, GST dealers registered under the Karnataka Goods and Services Tax Act, 2017 experience a 30-day delay before their GST registration is reflected on the Professional Tax portal. This delay significantly impacts the timely registration and payment of Professional Tax for newly registered GST dealers. We propose reducing this delay to expedite enrollment registration.

2. Password Reset and OTP Issues for Employer Login

The password reset process for employer logins is currently cumbersome, as the portal does not display the mobile number receiving the OTP. Furthermore, historically migrated registrations may have outdated mobile numbers. We recommend an option to reset passwords via the GST portal or to extract updated contact information from the GST portal for OTP delivery.

3. Streamlining Tax Payment and Return Filing

The existing procedure for tax payment and filing returns through the employer login is lengthy, requiring multiple navigations through tabs and returning to the home page. We propose the following streamlined steps to enhance user experience:

Select the applicable month.
Enter the number of employees earning above Rs 25,000.
Initiate payment.
Choose payment mode.
Redirect to the bank website.
Complete payment.
Click to file the return.
Automatically download the return.

Simplifying these steps will significantly improve efficiency.

4. Frequent Password Expiration

The employer portal password expiration occurs too frequently, requiring manual resets. We suggest allowing employers to enter their old passwords to access a password reset page without the need for OTPs.

5. Extension of Due Date for Professional Tax Payment for FY 2024-25

We previously submitted a request (included as Annexure 1) for an extension of the due date for the annual professional tax payment of Rs 2,500 for FY 2024-25, citing issues with the website not functioning adequately before the due date. Although the extension notification was issued on 30th May 2024, extending the deadline to 31st May 2024, this granted taxpayers insufficient time to comply. We kindly request an appropriate extension of the due date, as it was only available for two days post-notification. Furthermore, we would like to inform you that some taxpayers voluntarily paid interest and penalties due to the late notification. We urge you to consider safeguarding the interests of these diligent taxpayers.

As advocates for the accounting profession and representatives of various sectors of trade and industry, we understand the importance of timely tax compliance for the economic stability of the state. With the responsibilities bestowed upon us, we address various public interest issues and represent matters important to the community.

In light of the challenges faced, we, the members of the Karnataka State Chartered Accountants Association, on behalf of the Chartered Accountants community and the broader trade and industry in Karnataka, respectfully urge you to consider our requests.