Professional Tax in Telangana

While looking at your salary slip, you will find a section featuring professional tax (PT) deduction. If you are curious to know the meaning of professional tax or who imposes the tax, the following sections will be a great help. Here, we have discussed professional tax in Telangana and various data related to it.

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Professional tax is a direct tax that the State Government of Telangana imposes on any individual who earns through any medium.  The State Government levies this tax on individuals involved in government and non-government sectors or any other professions such as doctors, lawyers, etc. In short, the State Government imposes a professional tax on individuals earning income from any profession, employment or trade.

According to the Telangana Professional Tax Act, 1987, the Commercial Taxes Department is responsible for collecting professional taxes due within the state. The Telangana Government regulates the Commercial Taxes Department.

The Telangana Government levies a professional tax on every earning individual.  Here, persons responsible for paying professional tax can be segregated into two parts. These include-

Salaried Individual

Employers pay professional tax (PT) on behalf of the employees after deducting it from their salary. Employees can claim an income tax deduction on PT under Section 16(iii) of the Income Tax Act, 1961.

Self-employed Individual

The applicable slab rates remain similar for self-employed individuals. However, self-employed individuals must pay this tax themselves.

PT payment in Telangana can be done online by visiting the official website of the Telangana Government and following the steps mentioned below,

• Step-1- Click on E-registration under New Dealer Sub Section. Next select ‘PT Registration’. 
• Step-2- Click on ‘e-Payment’ and ‘Select the Tax Type’ from the available option.   
• Step-3- Provide required information. Click on Submit.
• Step-4- Next, verify the provided details and click on ‘Make Payment’.
• Step-5- Select any bank of your preference from the drop-down list and complete the payment procedure via Net Banking or other available options.

As the online Professional tax payment in Telangana is clear to individuals, let’s find out the due date and penalty charges and people exempted from paying it.

Individuals who are liable to pay professional tax in Telangana must make the payment on the 10th or before the 10th of every month.

In case earning individuals of Telangana fail to pay professionals, the State Government will impose a penalty ranging from 25%-50% of the total outstanding amount.

Here is a list of individuals who are exempted from paying professional tax in Telangana.

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

The above-mentioned piece talks about the Professional Tax in Telangana. Read these details carefully and secure deduction on professional tax while filing an income tax return.