Professional Tax Andhra Pradesh – Rates, Slabs, Payment Rules & Complete Guide

Key takeaways:

• In Andhra Pradesh, professional tax is paid by every salaried employee.
   
• Penalties are imposed in case of non payment of professional tax.
   
• The tax rate slab in Andhra Pradesh for professional tax is based on the type of employment.

Bonus tip: 

Under the APPT (Andhra Pradesh Profession Tax) Act, 1987, professional tax is levied on every salaried individual or person involved in professions like doctors, lawyers, chartered accountants, entrepreneurs, etc.

Professional tax in Andhra Pradesh is governed by the Andhra Pradesh Tax on Professions, Trades and Callings and Employments Act, 1987.

Think of Andhra Pradesh as an office building. You go there to work and earn but also pay a small amount for the maintenance of the building. Similarly, professional tax is paid by you to the government for public welfare. 

For example, you earn ₹35,000 per month from your job. The employer will deduct a fixed amount from your salary according to the professional tax rate slab and deposit with the Andhra Pradesh government. Now, you do not have to do this, the tax amount is auto deducted. 

What is professional tax in Andhra Pradesh?

The state government of Andhra Pradesh imposed a professional tax on every person who is a salaried employee. This also includes working in government and private sectors and self employed individuals in any business such as doctors, lawyers, engineering etc. People working in Andhra Pradesh have to pay the professional tax according to the income slabs made by the government. However, this tax cab be claimed as a deduction under the old income tax rule while filing an ITR. The amount of professional tax in Andhra Pradesh varies between ₹1800 - ₹2500 per annum. In cae of any help required you can contact on the customer care number 08645-277939.

What is the professional Tax slab rate in Andhra Pradesh?

The tax rate slab in Andhra Pradesh for professional tax is based on the type of employment. 

The below table shows the tax rate slab for salaried employees:  

The below table shows the tax rate slab for self employees in Andhra Pradesh.

The below table shows the professional tax rate slab for certain professionals in Andhra Pradesh. 

The above information is helpful if you want to know about different types of professional Tax rate slabs. 

What are the penalties in case of late professional tax payment in Andhra Pradesh?

In case you fail to pay professional  tax in andhra pradesh, you have to pay a penalty of 25% to 50% percent of the tax amount due this penalty is in addition to the interest on not payment or late payment of taxes. 

What are the exemptions to Andhra Pradesh Professional tax?

The following group of people are not required to pay professional tax in Andhra Pradesh according to the Andhra Pradesh Tax on profession, Trade, Vocation, and employments act, 1987: 

• People with 40% disability of any kind. 
• Public telephone operators.
• Commercial establishment with an turn over of ₹10,00,000
• People with monthly income less than ₹15,000

In case you fall under the above specified categories, you are exempted from paying the tax in Andhra Pradesh. 

Conclusion:

In Andhra Pradesh, every person who is earning a minimum salary of ₹15,000 is required to pay professional tax. The amount of this tax varies according to your income. Also, non payment of professional tax can cause legal actions against you along with the penalties. 

FAQs:

If I (employer) am in state A and my employee is doing work from home in state B. In this case, professional tax will apply to which state? 

In this case, the professional tax will apply according to state B, where the employee works. This is because the professional tax applies according to the state where work is performed and not where the office is located.

What is professional tax and why is it levied?

Professional tax is to be paid by every salaried employee to the government for public welfare. The tax amount is used for public services like road maintenance, health, education, transport, sanitation etc. 

What are the documents required for professional tax registration?

The documents for professional tax registration vary according to the states. Usually basic KYC documents are required for the registration. 

What is the difference between professional tax abd income tax? 

Professional tax is imposed by the state on the income earned by the way of profession, trade or employment. Income tax is a percentage of income which is paid to the government. The Income Tax Act, 1961 governs the provisions of income tax rates.

Who is exempted from paying professional tax in Andhra Pradesh?

People with 40% disability of any kind, public telephone operators, commercial establishments with a turnover of ₹10,00,000 and people  with monthly income less than ₹15,000 are exempted from paying professional tax in Andhra Pradesh.