Everything about Professional Tax in Hyderabad Explained

Currently, Hyderabad is one of the top three cities that job seekers prefer to work in or relocate to. The promising job market here attracts thousands of job aspirants. If you are one such who has recently moved to Hyderabad for a job, you must know certain things which are applicable throughout the Telangana State. All earning individuals of Telangana must pay professional tax as per their income.

As a result, all earning individuals of Hyderabad must pay the amount as per the tax slab rates. Read on to know everything about professional tax in Hyderabad.

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What Is Professional Tax in Hyderabad?

Professional tax is a direct tax that the State Governments levy on the income of individuals and deducts from the taxable income. Professional tax is not only imposed on salaried individuals but also on all earning individuals who are involved in any profession, trade, callings, employment.

As per this definition, individuals of Hyderabad who earn income through any medium such as profession, trade, callings, employment must pay professional tax with the city as per the applicable tax rate in Telangana.

Please refer to the table mentioned below to know the applicable professional tax slab rates in Hyderabad, i.e., Telangana.

Monthly Income	Tax Per Month
Up to ₹ 15,000	Nil
From ₹ 15,001 - ₹ 20,000	₹ 150
Above ₹ 20,000	₹ 200

Along with knowing the professional tax slab rates of Hyderabad, it is imperative to learn about persons responsible for collecting and paying P tax, payment process, due date, exemptions applicable. Read along!

Who Is Responsible for Collecting and Paying Professional Tax in Hyderabad?

The Commercial Taxes Department, which is regulated under the Telangana Government, is responsible for collecting professional tax dues within the State. It means this department is responsible for the collection of P tax in Hyderabad as well.

All earning individuals are liable to pay P tax in Hyderabad. For a better understanding, professional taxpayers of Hyderabad can be divided into two categories as per the employment status. They are as follows,

Salaried Individual: Individuals employed in any government or non-government sector or practising professions such as doctors, lawyers, accountants in the city of Hyderabad must pay P tax. Employers deduct professional tax amounts from the paid salary or wages of employees as per the applicability and deposit the same to the State Government.
Self-employed Individual: Individuals who are working as freelancers or running a business without any employees must self-deposit P tax in Hyderabad.

How to Pay Professional Tax in Hyderabad?

Earning individuals of Hyderabad can pay P tax online. Follow the steps mentioned below to complete the online payment of professional tax in Hyderabad,

Step 1 - Visit the official website of the Commercial Taxes Department, Government of Telangana.
Step 2 - Click on e-Payment (All Acts) from the Existing Dealer option under the ‘Online Dealer Services.’
Step 3 - Next, select the tax type (here Profession Tax) from the dropdown menu.
Step 4 - Provide essential details and click on ‘Submit.’
Step 5 - Next, verify all the provided details and click on ‘Make Payment.’
Step 6 - Choose any bank of your preference and complete professional tax payment in Hyderabad through Net Banking or other payment gateways.

When Is the Due Date for Professional Tax Payment in Hyderabad?

Salaried individuals (i.e., employers) or self-employed individuals must pay P tax in Hyderabad on or before the 10th of every month.

In case professional taxpayers fail to pay the due tax amount within the stipulated time, they will have to pay a penalty charge ranging from 25% to 50% of the total due tax amount.

Who Are Exempt From Paying Professional Tax in Hyderabad?

The State Government of Telangana frees certain individuals from paying P tax in Hyderabad and across the State. They are as follows:

Individuals who have a disability, including blindness
Women who are working under the director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojna
Badli workers of the textile industry
Parents or guardians of children who suffer from any mental disability
Military personnel under the Air Force Act, 1950; the Army Act 1950; the Navy Act 1957

Are you browsing the internet to know about the professional tax payment process in Hyderabad? The detailed discussion on professional tax in Hyderabad will help you to pay this tax efficiently. So, read the above sections thoroughly!

Frequently Asked Questions

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Do employers need to register to pay professional tax in Hyderabad?

Yes, employers (corporate company, partnership firm, sole proprietorship) need to register and obtain a professional tax registration certificate to make payment of P tax in Hyderabad on behalf of their employees.

Do self-employed individuals of Hyderabad have to register themselves under the Professional Tax Act?

Yes, self-employed individuals of Hyderabad have to register themselves under the Professional Tax Act in Telangana to pay P tax here.