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

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. In this article we will learn about professional tax in Telangana.

Professional Tax in Telangana

The Telangana state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals engaged in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Telangana have to pay professional tax according to the applicable income slab and professional tax rate of Telangana.

Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually. However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR. The professional tax amount in Telangana ranges between Rs.1800- 2,500 per annum.

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 under the Old tax regime. 
• 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 of the company
• 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: 

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

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: 

Step 1: Visit the Commercial Taxes Department of Telangana’s website and click on the ‘e-Registration’ option under the 'New Dealer’ Subsection if you are a new registration. 

Step 2: If you are an existing taxpayer, under the ‘Existing Dealer’ click on ‘E-payment(all Acts)’.

Step 3: A new window will open, select the tax type.

Step 4: Enter the TIN/GRN, name of the Firm, purpose of paying and the payment type, i.e, yearly for employers or monthly for employees.

Step 5: Also enter the details like period for which the tax is paid, amount in rupees, and the date.

Step 6: Upon entering the above mentioned details, click ‘Submit’ and verify all details that are displayed.

Step 7: Click ‘Make Payment’ and select your preferred bank to complete the transaction via net banking and other available options.

Step 8: Your professional tax payment has been completed.

Telangana Professional Tax Payment Due Date

In Telangana, professional tax (PT) deducted by employers must pay it on or before the 10th of each month. If an employer fails to pay any tax amount within this specified time, the state government will levy a penalty. 

The assessee holding the enrollment certificate or self-employed 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. Penalty will be imposed only after giving the assessee a reasonable opportunity of being heard.

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

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.