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  4. Professional Tax in Andhra Pradesh
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    Professional Tax in Andhra Pradesh: Everything Explained

    professional tax in andhra pradesh
    Source: indiafilings.com

    For salaried individuals in Andhra Pradesh who have a couple of years of experience, the term ‘professional tax’ (PT) is not new. This is because they see it every month in payslips or every year in Form 16 issued to them. However, for new joiners or those who have entered the professional arena recently or a layman, the term professional tax may not be clear. 

    This piece thoroughly talks about professional tax in Andhra Pradesh. So, start reading to learn everything about PT in Andhra Pradesh!

    Team Digit

    What Is Professional Tax in Andhra Pradesh?

    Professional tax is a direct tax that the State Government of Andhra Pradesh levies on professionals. This tax is levied on salaried individuals and on all kinds of professions, trade and employment, including individuals involved in businesses as freelancers.

    Section 276 of the Indian Constitution discusses provisions related to professional tax in India.

    Please note that professional tax is deductible from an individual’s taxable income under Section 16 of the Income Tax Act.

    Wondering what the professional tax slabs in AP (Andhra Pradesh) are? Follow the table mentioned below,

    Wondering what the professional tax slabs in AP (Andhra Pradesh) are? Follow the table mentioned below,

    Monthly Income

    Monthly Professional Tax Amount

    For salary up to ₹ 15,000

    Nil

    For salary between ₹ 15,001 - ₹ 20,000

    ₹ 1,500

    For salary ₹ 20,001 or above

    ₹ 200

    Note: Every year, the State Government revises the professional tax slab. 

    As the definition of professional tax in AP is clear to individuals, we can move to the next sections and learn about other important professional tax-related information.

    Who Is Responsible for Collecting and Paying Professional Tax in Andhra Pradesh?

    The Commercial Taxes Department is the nodal agency and is responsible for collecting due professional taxes in the State. The maximum cap set for yearly professional tax payment must not exceed ₹ 2,500.

    Currently, this department is reaching out to Andhra Pradesh taxpayers individually to understand the need/importance of paying professional tax dues.

    As stated earlier, the State Government of Andhra Pradesh levies a professional tax on earning individuals. To get a clear idea, read the following sections.

    Salaried Individual

    Salaried individuals, i.e. employees, are responsible for paying professional tax in AP. However, it is the employer who deducts and pays professional tax to the State Government on behalf of the employee.

    Remember, employers also need to pay professional tax corporations, sole proprietorship, partnership firms and individuals running any trade/profession depending on the income category they fall under.

    Employers must obtain a professional tax registration certificate to be able to pay PT on/her trade or profession. In addition, they must collect a professional tax enrolment certificate to get the authority to deduct tax.

    Self-employed Individual

    Individuals practising freelancing business where there are no other employees are involved must self-deposit professional tax.

    How to Pay Professional Tax in Andhra Pradesh?

    Currently, there are two types of Returns available to taxpayers which they can pay. These are,

    Form I - It refers to the return of payable tax for a month. 

    Form II - It refers to a payment made in a particular financial year.

    Here is a step-by-step process of paying PT in Andhra Pradesh.

    1. Form I Return

    • Step 1 - Visit the official website of the Commercial Taxes Department and click on ‘Make payment’.
    • Step 2 - Select ‘Online payment’ and choose the payment gateway.
    • Step 3 - After the completion of payment, a message will appear on the screen, and a receipt will generate with the print option.

    2. Form II Return

    There are two ways to pay Form II tax in Andhra Pradesh, namely, ‘Direct Payment’ and ‘After Login’.

    Direct Payment

    • Step 1 - Visit the official website of the Commercial Taxes Department and click on ‘My Profession Tax’ and ‘e-payment’.
    • Step 2 - Provide Form II PTIN and captcha code.
    • Step 3 - After that, you will receive an OTP on your registered mobile number. Next, enter OTP in the respective field.
    • Step 4 - Choose the financial year and complete the payment.

    After Login

    • Step 1 - Visit the official website of the Commercial Taxes Department and click on ‘My Profession Tax’ and ‘Taxpayer Login’, respectively.
    • Step 2 - Next, click on ‘Dashboard’ and ‘Returns’. 
    • Step 3 - Under ‘Return/Payments’, click on Form II Payment and select ‘Financial year’. 
    • Step 4 - Now, click on ‘Make Payment’ and next, on ‘Online Payment’.
    • Step 5 - Choose a suitable payment gateway. After the completion of payment, a message will appear on the screen, and a receipt will be generated with the print option.

    When Is the Due Date for Paying Professional Tax in Andhra Pradesh?

    The payment dates for professional tax in Andhra Pradesh depends on the certificate of enrolment. Individuals have to pay PT before the 30th June of a financial year; if they have received the certificate of enrollment on or before 31st May. Here, they have to pay PT within a month of the day of enrollment.

    In case any individual fails to pay PT in Andhra Pradesh, they have to pay penalty charges which must range from exactly 25% to 50% (not less or more than) of the tax due.

    Who Are Exempt From Paying Professional Tax in Andhra Pradesh?

    Following is a list of individuals/establishments who/which can benefit from a professional tax exemption in Andhra Pradesh -

    • Physically handicapped individuals with 40% disability of any kind (as per the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987)
    • Commercial establishments with an annual turnover of ₹ 10 lakh
    • Public telephone operators

    Recent Update on Professional Tax in Andhra Pradesh

    The State Government of Andhra Pradesh increased the professional tax amount from ₹ 750 to ₹ 1,250. This is applicable for a certain category and came into immediate effect. The Government issued the notification on 24th August 2020 where two slabs of PT were increased from ₹ 1,250 to ₹ 2,000 to ₹ 2,500.

    In the previous section, we mentioned that commercial establishments with an annual turnover of ₹ 10 lakh need not pay PT. However, if they have a turnover from ₹ 10 lakh to ₹ 25 lakh or above ₹ 25 lakh; they have to pay PT of ₹ 2,000 and ₹ 2,500, respectively.

    Additionally, way bridge operators, district and state-level cooperative societies, film industry workers, and video libraries have to pay PT of ₹ 2,500 in Andhra Pradesh.

    With such a detailed discussion, this piece on professional tax in Andhra Pradesh comes to an end. Read the details, understand the payment procedure and pay professional tax on time to avoid penalty charges.

    Frequently Asked Questions

    Is it mandatory to complete the process of professional tax registration in Andhra Pradesh?

    Yes, it is mandatory to complete the professional tax registration process in Andhra Pradesh.

    Yes, it is mandatory to complete the professional tax registration process in Andhra Pradesh.

    Can I opt for manual payment for professional tax payment in Andhra Pradesh?

    The State Government discontinued the manual payment or challan entry of professional tax payment in Andhra Pradesh from 1st January 2020. Hence, professionals are left with no option but to make online payment of professional tax in AP.

    The State Government discontinued the manual payment or challan entry of professional tax payment in Andhra Pradesh from 1st January 2020. Hence, professionals are left with no option but to make online payment of professional tax in AP.

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    Professional Tax in Other States of India

    Professional Tax in Odisha
    Professional Tax in Karnataka
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    Professional Tax in Chhattisgarh
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    Professional Tax in Madhya Pradesh: Tax Slab Rates, How to Pay, Due Dates & Exemption
    Professional Tax in Andhra Pradesh
    Professional Tax in West Bengal
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    Author: Team Digit

    Last updated: 20-05-2025

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