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Professional tax in Andhra Pradesh

Get the latest information about professional tax applicable in Andhra Pradesh along with applicable guidelines.

In Andhra Pradesh, Professional Tax is a tax levied on individuals engaged in professions, trades, and employment. Here are some important details:

This tax is applicable to individuals who are engaged in any profession, trade, or employment in the state of Andhra Pradesh. The rate of Professional Tax in Andhra Pradesh varies based on the monthly income of the individual. The tax slabs and rates are as follows:

Monthly Income Tax Amount
Up to Rs. 15,000 Nil
Between Rs. 15,001 and Rs. 20,000 Rs 150 per month
Between Rs. 20,001 and Rs. 30,000 Rs 200 per month
More than Rs. 30,000 Rs 300 per month

It is paid by the employer on behalf of the employee. The employer deducts the tax from the employee’s salary and deposits it with the state government.

It is important to note that non-payment or delayed payment of Professional Tax may result in penalties and interest charges. Therefore, it is advisable for employers to comply with the Professional Tax regulations in Andhra Pradesh to avoid any unnecessary financial burden.

Due dates of professional tax in Andhra Pradesh

In Andhra Pradesh, the due date for payment of Professional Tax is the 20th of the following month. This means that the tax for the month of May is due by the 20th of June, the tax for the month of June is due by the 20th of July, and so on for every month.

Employers are required to make deductions of the Professional Tax from the employee’s salary at the time of payroll and deposit it with the state government by the due date. They are also required to file monthly and annual returns as per the format.

The due date for filing monthly returns is the last day of the following month, and the due date for filing annual returns is the 31st of May of the following financial year.

It is important for employers to comply with the due dates for payment and filing of returns to avoid any unseen penalties and interest charges.

Tax slab rates of professional tax in Andhra Pradesh

In Andhra Pradesh, the Professional Tax slab rates are as follows:

  • Individuals earning up to Rs. 15,000 per month are exempt from Professional Tax.
  • People earning between Rs. 15,001 and Rs. 20,000 per month have to pay Rs. 150 per month.
  • Individuals earning between Rs. 20,001 and Rs. 30,000 per month have to pay Rs. 200 per month.
  • People earning more than Rs. 30,000 per month have to pay Rs. 300 per month.

It is important to note that the Professional Tax slab rates in Andhra Pradesh may be subject to change from time to time. Employers and employees are advised to stay updated with the latest rates and comply with the compliances to avoid any penalties.

Exemptions in Andhra Pradesh professional tax

In Andhra Pradesh, certain individuals and groups are exempted from paying Professional Tax. Here are some of the exemptions from professional tax in Andhra Pradesh:

  1. Individuals who are over the age of 65 are exempt from paying Professional Tax in Andhra Pradesh.
  2. Individuals with disabilities, as defined under the Persons with Disabilities Act, 1995, are exempt from paying Professional Tax.
  3. Members of the armed forces and paramilitary forces are exempt from paying Professional Tax in Andhra Pradesh
  4. Individuals who are working in the following sectors are exempt from paying Professional Tax in Andhra Pradesh:
    • Agriculture
    • Handloom
    • Cottage Industries
    • Fishermen
    • Weavers
    • Potters
    • Sculptors
    • People selling vegetables, fruits, and fish
  5. Individuals who are employed in the unorganized sector and earning less than Rs. 15,000 per month are exempted from paying Professional Tax.

It is important to note that individuals or groups claiming exemption from Professional Tax must provide relevant documents and proof of their exemption to their employers or to the concerned authorities.

How to pay professional tax online in Andhra Pradesh?

In order to pay professional tax in Andhra Pradesh you are required to follow a certain series of steps:

  • Fill Form 1 Return
  • Visit official website of Commercial Taxes Department, click on Make Payment option
  • Select Online Payment and complete payment on preferred gateway
  • After that a payment confirmation receipt will appear. You can download it for future refrences

FAQs (Frequently Asked Questions)

Yes it is necessary to pay professional tax in Andhra Pradesh. Any kind of delay attracts penalty.

The amount of professional tax an individual has to pay vary from individual to individual from Rs 150 per month to Rs 2500 per month.

Any individual who is earning certain amount of income is required to pay professional tax.

An individual can pay professional tax in Andhra Pradesh using online portal of government.

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