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The state governments in India, may levy professional tax on the income from profession or the employment. The Telangana professional tax is levied by the state government of Telangana on the salaried individuals or the persons engaged in trade or business or professionals. In the article, we will develop an understanding of the professional tax levied in the state of Telangana.
Professional tax payable in the state of Telangana, is regulated by the Telangana Profession Tax Act, 1987 and the commercial taxes department is entrusted with the responsibility to collect the professional tax in the state. The state government can levy maximum of Rs. 2500 professional tax annually and a minimum slab at Rs. 110 per annum.
The salaried persons who are liable to pay professional tax can claim deduction under the Income Tax Act, 1961; whereas, professional tax levied on persons engaged in business or trade, cannot claim deduction.
The individuals who are registered under the professional tax are required to file the return before the 10th of every month.
It can be divided in two parts, i.e., persons who are responsible to pay professional tax and the ones’ who are exempted to pay the professional tax in the state of Telangana.
Persons responsible to pay professional tax
The following are the persons who are eligible to pay professional tax in Telangana:
The persons who are exempted to pay professional tax are:
Types of taxpayers in professional tax
There are 2 types of taxpayers to pay for professional tax. The types are:
The types are:
The employer deducts the tax amount as a professional tax from the employees’ salary. The salaried individual under section 16(iii) and can claim for tax deduction under the Income Tax Act, 1961.
The self – employed persons need to deposit the professional tax themselves and they cannot claim any deduction under the Income Tax Act, 1961.
The tax slab rate for professional tax in case of:
Salary per month
Monthly tax payable
Up to Rs. 15,000
Between Rs. 15,000 & Rs. 20,000
More than Rs. 20,000
Up to 5 years
More than 5 years
Rs. 2500 per annum
The following documents are required for registration of professional tax:
These are the steps to be followed for registration of Telangana professional tax:
In case of Non-payment of professional tax, the penalty imposed is between 25% and 50% of the tax amount due, after giving him an opportunity of being heard.
The professional tax in Telangana is levied on persons’ income, whether it is salary or from the business or trade. The State Government of Telangana has prescribed tax rate slab for individuals & professionals to determine the professional tax payable. The paying of professional tax is determined on various factors that are mentioned in the article.
Read our article:West Bengal Professional Tax Registration: Here’s all you need to know
Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.
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