Professional Tax of Telangana: Guide to Rates, Rules & Payment Process

Key Takeaways:

• Professional tax is a tax imposed by the state government on every person who is earning. 
   
• Professional tax in Telangana is covered under Telangana Professional Tax Act, 1987.  People working in Telangana have to pay professional tax according to the applicable slab of income.
   
• This tax is imposed on professions, trades, employment, and callings.

Bonus Tip: Professional tax in Telangana of October needs to be paid by 10th November. The due date for professional tax payment and returns vary for every state. 

Professional tax is a state level tax which is imposed by the government on every person who is earning. 

Think of Telangana as an office place where you are working and using the basic facilities. In return, you are paying a small amount of your monthly salary for the maintenance. Similarly, professional tax is an amount from your salary which is paid to the government. The amount deducted for tax is used for public welfare and services. 

For example, I work in an IT company in Hyderabad and my monthly income is ₹28,000. The professional tax in Telangana for salary above  ₹25,000 is ₹200. Therefore, my annual professional tax will be  ₹2,400 ( ₹200 x 12). 

My employer deducts  ₹200 every month from my monthly salary and remit this to the government of Telangana. 

What is the professional tax of Telangana?

The Telangana state government imposed a professional tax on every salaried employee working in government and private sector and self employed individuals. People working in Telangana have to pay professional tax according to the applicable slab of income. Professional tax rate of Telangana in a company, professional tax is deducted by the employer from employees salaries every month and is remitted to the government. However the deducted professional tax which is paid by the employees can be claimed as a deduction while filing an ITR. 

The professional tax amount in Telangana varies between ₹110 to ₹2,500 per annum. According to the Telangana Professional Tax Act, 1987, every individual who is earning is required to pay this tax. For example if your salary is ₹20,000 per month the professional tax amount to be paid per month is ₹200.

What is the applicability of the professional tax in Telangana?

Professional tax in Telangana is applicable on the following:

• Every salaried employee is responsible for paying professional tax in Telangana. The employer deducts the tax from your salary and pays it to the state government. Under section 16(3) of the income tax act, 1961 the employee can claim the deducted tax.
• Self employed individuals are required to pay the professional tax but they can not claim it as a tax deduction. 
• Businesses which include proprietors, partnership forms, LLPs and companies.
• Freelancers and Traders.

It is essential for the above categories to pay the professional tax in Telangana. 

What is a professional tax slab rate in Telangana?

The below table show the rate tax applicable in Telangana:

The professional tax in Telangana is determined by the income of an individual per month.

What is the professional tax payment process in Telangana?

Below are the online payment steps:

1. Visit the official website of Telangana Commercial Taxes Department.
2. Select the professional tax option. 
3. Now select e-Payment (All Acts).
4. Select the type of tax and fill in the required details.
5. Review all the filled details twice before submitting.

Complete the transaction and download the payment receipt for your record. 

What are the exemptions of professional tax payments in Telangana?

Few categories of citizens are exempted from professional tax, which are as follows:

• Individuals receiving an income of less than ₹15,000 in a month.
• People above 65 years of age.
• People with disabilities. 
• Parents of children with disabilities.
• Members of the armed forces. 
• Small scale agricultural workers and farmers. 

Such exemptions help reduce the burden on vulnerable and socially important groups.

What is the registration process for employers and professionals?

There are two types of registrations:
 

1. PTRC (Professional Tax Registration Certificate)
2. PTEC(Professional Tax Enrollment Certificate)

Following are the steps to register for professional tax:

• Visit the Telangana commercial tax department website.
• Select the appropriate registration type.
• Fill in the application and upload the required documents. 
• Once you are verified, a PT registration number is issued. 

This online process typically takes a few working days.

What are the applicable slab rates in Telangana?

The below the table shows the tax rate for the salaried individuals:

For self employed and business owners.

The tax rates vary based on monthly income of business turnover. 

Conclusion:

It is legally important to pay professional tax. Non compliance can lead to serious penalties in Telangana. Both salaried individuals and self employed professionals must ensure that they are registered and paying with the prescribed timelines. 

FAQs:

What is the due date for the payment of professional tax in Telangana?

The due date for payment of professional tax is the 10th of the following month.

How do I get a professional tax receipt online?

Visit the official professional tax website of your state and after the payment of tax you can download the professional tax receipt. 

As a salaried employee, which one of either should I choose, old tax regime or new one?

If you are into active saving and deduction claims, you can go for the old regime. But if you need a few investments then go for the new one. 

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.

How to pay professional tax in Telangana?

You can pay online and offline. All you need to do is visit the official website of the Commercial Taxes Department of the Telangana Government. You can also visit the nearest district sales tax office and fill up a form to initiate the process.