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Professional Tax in Telangana: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

By Ektha Surana

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Updated on: May 23rd, 2024

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13 min read

The Commercial Taxes Department, regulated by the Telangana government, is responsible for collecting professional tax in Telangana. If you have recently moved to this state or are employed here, it is important to know everything about the professional tax applicable here. Scroll down to learn all related information about professional tax in Telangana. 

What is Professional Tax?

Professional tax is collected by the state government from your salary income. To understand more about professional tax, refer to our article Professional Tax.

Professional Tax in Telangana

Professional tax is the tax collected from earning individuals. This tax is levied on individuals working in non-government and government sectors or belonging to any profession including lawyers, doctors, chartered accounts or people involved in any other business. 

Therefore, if you are a resident of Telangana who earns money through profession, employment, trade or other means, you must pay professional tax to the state as per the applicable tax rate. 

Telangana Professional Tax Act

As per the Telangana Professional Tax Act, 1987, earning individuals are required to pay this tax; depending on their income, it can be a maximum of Rs 2500 and a minimum of Rs 110 annually. For instance, if you earn more than Rs 20,000 per month, the professional tax payable per month is Rs 200. 

Under this act, every individual or entity registered under the Professional Tax rule must submit the assessing authority Form V every month detailing the salaries paid and the amount of tax deducted from the wages.

Professional Tax Applicability in Telangana

All individuals are responsible for paying this tax in Telangana. For a better understanding, let's look at the taxpayers of Telangana as per their employment status.

  • Salaried Individuals: Your employer is responsible for deducting professional tax from your salary/wages and paying it to the state government. Under section 16(3) of the Income Tax Act 1961, you can claim a tax deduction on professional tax paid. 
  • Self-employed Individuals: Unlike salaried individuals, self-employed are required to self-deposit the professional tax. Even though self-employed individuals are subject to the same slab rate, they cannot claim it as a tax deduction on their income tax returns.

List Of Documents For Registration

  • Memorandum Of Association & Articles Of Association
  • PAN Card
  • Lease Agreement
  • Employer Address Proof and ID Proof and photos
  • Board resolution for authorized signatory
  • No of directors and Photos and Proof of Residence of proprietor/ Managing Partner/ Managing Director/ Authorized person
  • No of employees
  • Registration fees of Rs 2,500 per director
  • Bank Details with Cancel Cheque

Professional Tax Slab Rate in Telangana

Clause (2) of Article 276 of the Constitution of India offers the right to state governments to collect professional tax as per the predetermined slab. Telangana has its own professional tax slab rate, which has been illustrated below: 

Monthly Income

Professional Tax Levied (per month)

Up to Rs 15,000

Nil

From Rs 15,000 to Rs 20,000

Rs 150

Above Rs 20,000

Rs 200

Additionally, professional tax slab rates for professions like Chartered Accountants, engineers, medical practitioners, etc., are:

Profession Tenure

Professional Tax Levied

Up to 5 years

Nil

More than 5 years

Rs 2500 per annum

Enrollment tax depends on various parameters such as annual income, and type of profession etc., click here to know in detail.

How to Pay Telangana Professional Tax Online?

Along with knowing the professional tax slab rate, it is important to learn how to pay professional tax online. Here is the step-by-step guide detailing how to complete the online payment of professional tax in Telangana: 

  • Visit the Commercial Taxes Department of Telangana’s website and click on the ‘e-Registration’ option under the 'New Dealer’ Subsection.
  • Select 'PT Registration' and click on the 'e-payment' option.
  • From the available options, select the tax type and provide the necessary information.
  • Upon entering the details, click ‘Submit’ and verify all details.
  • Click ‘Make Payment’ and select your preferred bank to complete the transaction via net banking and other available options.

Telangana Professional Tax Payment Due Date

In Telangana, if you are eligible to pay professional tax, you must pay it on or before the 10th of each month. If you fail to pay any tax amount within this specified time, the state government will levy a penalty. 

The assessee holding the enrollment certificate must pay the taxes before 30 June if enrolled before the commencement of a year or on or before 31 May of a year; or within one month of the date of enrolment if enrolled after 31 May of a year.

Telangana Professional Tax Late Payment Penalty

Failure to make payment before the due date may result in a hefty penalty of 25% to 50% of the total outstanding tax amount. 

Telangana Professional Tax Exemption

The state government exempts certain individuals from paying this professional tax. This includes:

  • Individuals with disabilities
  • Senior citizens who are above 65 years of age
  • Parents of a mentally challenged child
  • Badli workers in the textile industry
  • Women working under the Mahila Pradhan Kshetriya Bachat Yojna or Director of Small Savings.
  • Military personnel working under the Army, Air Force, or Navy.

Various PT Forms

Category of assessee

Application Form

Application of enrollment by employer

Form I

Application of enrollment by assessee (other than a person earning salary or wages)

Form II

Return to be filed by employer

Form V

Paying in slip for making Payment 

Form VI

Receipt for the amount of tax, Interest and Penalty

Form VII

Final Word

If you are a salaried individual, then as mentioned under Article 276 (2) of the Indian constitution, your employer will deduct this professional tax as per the predetermined slab rate. However, for other professionals, you have to self-deposit professional tax in Telangana before the due date of every month. 

Frequently Asked Questions

Is professional tax compulsory in Telangana?

Yes, it is compulsory for every individual earning more than Rs 15,000 to pay this tax in Telangana. Moreover, companies, partnership firms, etc., are required to register and get hold of profession tax registration certificate in order to pay this tax.

How much is the professional tax in Telangana?

It depends on your income. The professional tax payable depends on the tax slab rate. For instance, if you are earning more than Rs 15,000 per month, then you are liable to pay Rs 150 per month.

Who is eligible for professional tax in Telangana?

Both salaried and self-employed individuals are eligible for professional tax in Telangana. Entities and business organisations are also liable to pay this tax on behalf of their employees. 

Who is an exemption from professional tax in Telangana?

Senior citizens, Badli workers, disabled individuals, military personnel, and women working under the Director of Small Savings are exempted from paying professional tax in Telangana.

How to pay professional tax in Telangana?

You can pay it online and offline. All you need to do is visit the official website of the Commercial Taxes Department of the Telangana Government or you can visit the nearest district sales tax office and fill up a form to initiate the process.

About the Author

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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Quick Summary

The Commercial Taxes Department in Telangana collects professional tax from individuals, regulated by the Telangana Professional Tax Act, 1987. Tax rates vary based on income; individuals earning more than Rs 20,000 pay Rs 200 per month. Salaried individuals have tax deducted by their employer, while self-employed must self-deposit. The online payment process involves registering on the Commercial Taxes Department website. Failure to pay on time incurs penalties. Certain individuals are exempt from paying professional tax.

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