Professional Tax in Telangana – A Complete Guide

What is Professional Tax?

Professional Tax (PT) is a state-imposed tax on individuals and businesses engaged in professions, trades, and employment in Telangana. It is levied under the Telangana Tax on Professions, Trades, Callings, and Employments Act, 1987, and collected by the Commercial Taxes Department of the Telangana government.

Who is Liable to Pay Professional Tax?

Professional Tax is applicable to:

1. Salaried Employees – PT is deducted by employers from salaries.
2. Self-Employed Professionals – Doctors, Lawyers, CA, Engineers, Consultants, etc.
3. Businesses – Proprietors, Partnership Firms, LLPs, Private Limited & Public Limited Companies.
4. Freelancers & Other Traders – Anyone engaged in a trade, business, or profession.

Professional Tax Slabs in Telangana (As Per Latest Rates)

Telangana levies Professional Tax monthly based on salary or business turnover:

Monthly Salary (₹), PT Payable (₹ per month)

Up to ₹15,000, Nil

₹15,001 – ₹20,000, ₹150

Above ₹20,000, ₹200

Annual PT Limit: ₹2,500 per year.

Professional Tax for Self-Employed & Businesses

For self-employed individuals and businesses, the tax is levied based on annual gross receipts:

Annual Turnover (₹), PT Payable (₹ per year)

Up to ₹2,50,000, Nil

₹2,50,001 – ₹10,00,000, ₹1,000

Above ₹10,00,000, ₹2,500

Registration for Professional Tax in Telangana

• Employers must obtain a Professional Tax Registration Certificate (PTRC) to deduct PT from employees’ salaries.
• Self-Employed Individuals & Businesses must obtain a Professional Tax Enrollment Certificate (PTEC) and pay PT directly.

How to Register?

• Visit the Telangana Commercial Tax Department website – https://tgct.gov.in
• Apply online for either:

1. PTRC (for employers)
2. PTEC (for self-employed individuals)

• Submit required documents (business registration certificate, PAN, Aadhaar, address proof, etc.).
• Approval & Tax Number – After verification, the PT registration number is issued.

Payment & Due Dates for Professional Tax in Telangana

• Salaried Employees – Employers must deduct PT and pay it monthly by the 10th of the following month.
• Self-Employed Individuals & Businesses – PT must be paid annually by June 30.

Penalties for Non-Payment of Professional Tax

Failure to register, deduct, or pay Professional Tax in Telangana can lead to:

✅ Late Fee & Interest – 1.25% per month of the due amount.

✅ Penalty for Non-Registration – ₹1,000

✅ Penalty for Late Payment – ₹5 per day of delay.

✅ Legal Action – Recovery proceedings by the government.

Exemptions from Professional Tax in Telangana

Certain individuals are exempted from paying PT, including:

• Senior citizens (aged 65 years and above)
• Parents of mentally disabled children
• Members of the Armed Forces
• Individuals with permanent disabilities
• Agricultural workers & small farmers

Conclusion

Professional Tax is mandatory in Telangana for both salaried individuals and businesses earning above the specified limit. Timely registration and payment are essential to avoid penalties and legal consequences.

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