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Professional tax in Telangana

Get the latest information about professional tax applicable in Telangana for the individuals based on their profession and income level.

Professional taxes are collected by individual state governments on the earnings of an individual. This tax is imposed on individuals who are working in the public as well as private sector or belonging to any profession including lawyers, doctors, CAs or those who are involved in their own businesses.

If you are someone who is employed or involved in any business in Telangana, they must pay this tax to the state government as per the rules and compliances.

Telangana Professional Tax Act

According to the Telangana Professional Tax Act 1987, those individuals who are earning in Telangana are eligible to pay this tax. The amount of tax can vary depending on the income with a maximum of ₹ 2,500 for and a minimum of ₹ 110 for an individual. Let’s say you are an individual who is earning ₹ 20,000 in Telangana then you are liable to pay ₹ 200 as professional tax. 

Under this professional tax act every individual/entity who is registered are required to fill Form V showing the details of earning as well as the amount of tax deducted. 

Applicability of Professional Tax in Telangana

Every individual who is earning some form of money in Telangana is liable to pay professional tax. Let’s understand in detail who all are required to pay professional tax :

  • Salaried Individuals The employers are responsible for paying taxes of their employees. They deduct the professional taxes from their income and pay it to the state government. Under Section (3) of the Income Tax 1961, an individual can claim deduction on professional tax paid
  • Self-employed individuals- Same as salaried individuals, self-employed individuals are required to pay this tax to the state government. They are not allowed to claim after tax deduction as salaried individuals for the tax paid.

Applicable Professional Tax Slab Rate in Telangana

As per the Clause (2) of Article 276 of the Indian Constitution offers the right to the State government to collect professional tax from earning individuals as per the predetermined slab rate. 

Below is the slab rate applicable to individuals in Telangana:

Monthly Income Payable Tax Amount Per Annum
Upto ₹ 15,000 Nil
Between ₹ 15,000 and ₹ 20,000 ₹ 150
Above ₹ 20,000 ₹ 200

Moreover, the tax slab rate for professional such as Chartered Accountants, engineers and medical practitioners are:

Tenure of Profession Payable Tax Amount Per Annum
Upto 5 years Nil
More than 5 years ₹ 2,500 per annum

How to pay Professional Tax?

We have discussed the individuals on whom professional tax is applicable as well as the tax slab rate. Now let’s discuss how to pay this tax in Telangana online:

  • Visit the official website of Commercial Taxes Department of Telangana’s website and click on “E-Registration” button under “New Dealer” Sub Section
  • Choose “PT registration” and click on the “E-payment” option available
  • From the available options, select the type of tax and provide all the necessary information required
  • After this click “Submit” and verify all the details
  • Choose “Make Payment” and select the desired payment mode to complete your payment 

Telangana Professional Tax Due Date

If an individual is eligible to pay professional tax then payment has to be made by 10th of every month. If you failed to make the payment on time then you are liable to pay a penalty by the state government.

Late Payment Penalty on Professional Tax

If an individual fails to pay professional tax on time then a penalty will be imposed that varies from 25% to 50% of the outstanding amount.

Exemption in Professional Tax

Certain individuals are exempted from paying professional tax in Telangana. This includes:

  • Individuals who are suffering from any disability
  • Senior citizens who are above 65 years of age
  • Parents of a mentally or physically challenged child
  • Badli workers who are working in textile industry
  • Those women who are working under the Mahila Pradhan Kshetriya Bachat Yojna or Director of Small Savings
  • Military personnel working under the Army, Air Force or Navy

FAQs (Frequently Asked Questions)

Yes, like other states professional tax is compulsory in Telangana for earning individuals. Moreover business owners and salaried individuals are required to pay.

Professional tax in Telangana varies for an individual based on their income and profession. It is applicable for salaried employees earning salary of more than ₹ 15,000.

Every individual whether business owner, salaried employee is eligible to pay professional tax in Telangana. Individuals who provide professional services like doctors, consultants, CAs are required to pay professional tax.

An individual can pay professional tax using online portal of Telangana government. To pay professional tax online an individual can follow above-mentioned steps.

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