Professional Tax Andhra Pradesh: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

If you are a salaried or self-employed individual, you are liable to pay professional tax in Andhra Pradesh. But you might be thinking that if you already pay income tax to the Central Government, why would you need to pay another type of tax to your state government? If you have just been employed or started your business, the term ‘professional tax’ might be confusing for you. 

Read on to know everything about professional tax payments in Andhra Pradesh. 

Professional Tax in Andhra Pradesh

Under the APPT (Andhra Pradesh Profession Tax) Act, 1987, professional tax is levied on every salaried individual or person involved in professions like doctors, lawyers, chartered accountants, entrepreneurs, etc.  The State's Commercial Taxes Department has the power to collect professional taxes. Although the tax payable depends on monthly income, the annual professional tax payment doesn’t exceed Rs 2,500.  

Professional Tax Slab Rate in Andhra Pradesh

The professional tax slab rates for employees in Andhra Pradesh are stated in the table below:

The professional tax slab rates for certain professionals in Andhra Pradesh are: 

Andhra Pradesh Professional Tax Online Payment

You can pay professional tax in Andhra Pradesh by filing two types of returns - Form I and Form II. 

• Form I Return (Monthly Tax  Return)

1. On the official website of the Commercial Taxes Department, click on the 'Make Payment' option.
2. Now select ‘Online Payment’ and complete the payment on your preferred payment gateway.
3. After that, a message will appear on the screen detailing all payment details. You can print it for future reference.

• Form  II Return (Payment made during a fiscal year)

You can pay it in two ways, which include: 

1. Direct Payment
2. After Login

Direct Payment

1. Once you visit the website of Commercial Taxes Department, click on 'My Profession Tax' and then 'e-payment'
2. Once you provide Form II PTIN and captcha code, you will receive an OTP on your registered mobile number. 
3. Enter the OTP and choose the financial year for which you are paid the professional tax.
4. Complete the payment.

After Login

1. After visiting the website mentioned above, click on ‘My Profession Tax’ and then ‘Taxpayer Login’.
2. Click on ‘Dashboard’ and then ‘Returns’. Under this, click on Form II payment.
3. Select 'Financial year' and click on the 'Make Payment' option.
4. Click on ‘Online Payment’ and choose a suitable payment gateway as per your preference.
5. Once payment is made, you will receive a message on the screen. You can use the print option to generate a receipt.

Andhra Pradesh Professional Tax Payment Due Date

In Andhra Pradesh, the enrolment date of the assessee determines when professional tax payments are due. 

As per Rule 14 of the Andhra Pradesh Professional Tax 1987, if you are enrolled or stand enrolled before May 31 of a particular year, you must pay professional tax before June 30. If you get enrolled after May 31, then you must do so within a month of the enrollment date. 

Andhra Pradesh Professional Tax Late Payment Penalty

If anyone fails to pay professional tax in Andhra Pradesh, they may have to pay a penalty of 25% to 50% of the tax amount due.  This penalty is in addition to the interest on non-payment or late payment of taxes.

Andhra Pradesh Professional Tax Exemption

According to the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987, the following group of people and businesses are not required to pay professional tax in Andhra Pradesh:

• People with 40% disability of any kind
• Public telephone operators
• Commercial establishments with an annual turnover of up to Rs 10 lakh
• People whose monthly salary/wages is not more than Rs 15,000

Final Word

Every earning individual with a minimum salary of Rs 15,001 is eligible to pay professional tax in Andhra Pradesh. As discussed above, the amount payable varies depending on the income. Make sure to pay the tax on time as per your employment type and tax rate to avoid hefty penalties. 

Frequently Asked Questions

Is professional tax compulsory in Andhra Pradesh?

Paying professional tax is compulsory in Andhra Pradesh. Any kind of payment failure will attract hefty penalty charges. 

How much is the professional tax in Andhra Pradesh?

The amount of professional tax payable depends on the income slab of an individual/entity. The minimum tax rate in Andhra Pradesh is Rs 150 per month and can be as high as Rs 2500 per month. 

Who is eligible for professional tax in Andhra Pradesh?

Salaried individuals, freelancers and other self-employed individuals earning a stable income are liable to pay professional tax. However, the minimum income for professional tax eligibility in Andhra Pradesh is Rs 15,000 per month.

Who is exempt from professional tax in Andhra Pradesh?

Individuals with 40% disability of any kind and public telephone operators are eligible for professional tax exemption in Andhra Pradesh.

How to pay professional tax in Andhra Pradesh?

To pay this tax, you can fill out two types of returns - Form I and Form II. You can pay the tax online through the official website of the Commercial Taxes Department of Andhra Pradesh.