Professional Tax in Andhra Pradesh: A Complete Guide

Introduction

Professional Tax (PT) is a state-imposed tax levied on individuals earning an income through employment, profession, or trade. In Andhra Pradesh, this tax is governed by the Andhra Pradesh Tax on Professions, Trades, Callings, and Employments Act, 1987. It is a mandatory deduction for salaried individuals and professionals, contributing to state revenue for developmental projects.

This article provides a comprehensive guide on Professional Tax in Andhra Pradesh, covering applicability, slab rates, payment procedures, penalties, and compliance requirements.

Applicability of Professional Tax in Andhra Pradesh

Professional Tax applies to various categories of individuals and entities, including:

  • Salaried Employees: Deducted by employers from salaries and remitted to the state government.
  • Self-Employed Professionals: Includes doctors, lawyers, chartered accountants, consultants, etc.
  • Business Owners: Traders, shop owners, and other businesses registered under the Act.
  • Companies and Firms: Entities engaged in commercial activities are liable for professional tax.

The tax is levied based on an individual’s or entity’s income level and profession.

Professional Tax Slab Rates in Andhra Pradesh

The Andhra Pradesh government has defined slab rates based on monthly income levels. As per the latest guidelines, the tax rates are as follows:

For Salaried Employees:

Monthly Income Range Professional Tax Payable

Up to ₹15,000, Nil

₹15,001 – ₹20,000, ₹150 per month

Above ₹20,000, ₹200 per month

For Self-Employed Individuals and Businesses:

Annual Turnover/Income Professional Tax Payable Annually

Up to ₹1,80,000, Nil

₹1,80,001 – ₹3,00,000, ₹1,000

₹3,00,001 – ₹5,00,000, ₹1,500

Above ₹5,00,000, ₹2,500

Note: Employers are responsible for deducting PT from employees’ salaries and remitting it to the tax department.

Professional Tax Registration Process in Andhra Pradesh

For Employers:

  1. Register on the Andhra Pradesh Commercial Tax Portal (apct.gov.in).
  2. Obtain a Professional Tax Registration Certificate (PTRC) for deducting tax from employees.
  3. File monthly/quarterly returns and make payments online.

For Self-Employed Professionals & Business Owners:

  1. Apply for a Professional Tax Enrollment Certificate (PTEC) on the tax portal.
  2. Pay PT based on the applicable slab rates annually.

For detailed provisions, refer to the Andhra Pradesh Tax on Professions, Trades, Callings, and Employments Act, 1987(Act No. 22 of 1987).

Due Dates for Professional Tax Payment

The due dates for Professional Tax payment in Andhra Pradesh are:

  • For Salaried Employees: Employers must remit PT every month before the 10th of the following month.
  • For Self-Employed Individuals: Annual payment is to be made before 30th June of every financial year.

Late payment can result in penalties, so timely compliance is crucial.

Penalty for Non-Compliance

Failure to register, deduct, or pay Professional Tax on time attracts penalties:

  • Late Registration: A fine of up to ₹5 per day.
  • Late Payment: 2% interest per month on the due amount.
  • Non-Filing of Returns: Additional penalties as per tax authorities’ discretion.

To avoid unnecessary penalties, ensure you comply with the tax filing deadlines.

How to Pay Professional Tax in Andhra Pradesh

  1. Visit the Andhra Pradesh Commercial Tax Department Website (apct.gov.in).
  2. Log in with your credentials.
  3. Select the Professional Tax Payment option.
  4. Enter required details and tax amount as per your liability.
  5. Make an online payment through net banking or UPI.
  6. Download the payment receipt for future reference.

Exemptions from Professional Tax

Certain individuals are exempted from paying Professional Tax in Andhra Pradesh:

  • Senior citizens above 65 years of age.
  • Members of the Armed Forces.
  • Parents of children with disabilities.
  • Individuals with a physical disability (40% or more).
  • Any other exemptions specified by the government.

Conclusion

Professional Tax is a mandatory compliance requirement for salaried employees, self-employed individuals, and businesses in Andhra Pradesh. Understanding the slab rates, due dates, and payment process ensures smooth compliance and avoids penalties.

For businesses, ensuring timely deduction and remittance of Professional Tax is essential to stay compliant with state laws. If you need assistance with tax filings or registrations, consult a professional tax advisor to streamline the process.

Stay compliant, stay stress-free! For expert guidance on taxation and compliance, feel free to reach out to us.