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

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 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 meant by professional tax?

Professional tax is collected by the state government from your salary income.

Professional Tax in Telangana

Professional tax is the tax collected from the 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 in Telangana who is earning 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; it can be a maximum of Rs 2500 and a minimum of Rs 110 annually depending on their income. For instance, if you are earning more than Rs 20,000 per month, the professional tax payable per month is Rs 200. 

Under this act, every individual/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 pay 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.

Professional Tax Slab Rate In Telangana

Clause (2) of the 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: 

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

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: 

1. Visit the Commercial Taxes Department of Telangana’s website and click on the ‘e-Registration’ option available under the 'New Dealer’ Sub Section.
2. Select 'PT Registration' and click on the 'e-payment' option.
3. From the available options, select the tax type and provide the necessary information.
4. Upon entering the details, click ‘Submit’ and verify all details.
5. 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, then you must pay it on or before the 10^th of each month. If you fail to make payment of any tax amount within this specified time, then the state government will levy a penalty. 

Telangana Professional Tax Late Payment Penalty

Failure to make payment before the due date may cost you hefty penalty of 25% to 50% on 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 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.

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.