Telangana Professional Tax

In India, Professional Tax is a tax levied by the respective state's government on individuals employed in various sectors, including government and non-government sectors or in any profession, such as Chartered Accountants, Lawyers, Doctors, or anyone performing some form of business. The tax imposed differs from state to state due to varied tax rates based on the income slab rate set by the particular state government. A professional tax collected from the salary of a salaried employee is considered a deduction under the Income Tax Act. This article explores the aspects of Telangana Professional Tax in detail.

For detailed guidance on Professional Tax Registration and Compliance, visit this page.

Telangana Professional Tax, 1987

The Commercial Taxes Department, regulated under the Telangana Government, is responsible for collecting profession tax dues from professionals in the state. Under the Telangana Professional Tax Act, 1987, an individual is levied a profession tax of a maximum of Rs.2500 and a minimum slab as low as Rs.110 per annum.

Get your Telangana Professional Tax registration through BK & Co Auditors Salem.

Provisions for Filing a Monthly Return

All individuals registered under the Professional Tax Act must submit a return (Form V) every month to the assessing authority depicting the salaries paid and the amount of tax deducted. The return can be filed via a treasury challan/ DD/ Cheque/ e-payment and should be submitted online or offline by the 10th of every month.

Person Responsible for Paying Professional Tax

Employers are responsible for deducting and remitting professional tax to the State Government as specified by law. Corporate companies, partnership firms, and sole proprietorships must register and obtain a professional tax registration certificate to pay professional tax on the business or profession. Freelancing individuals without employees are also required to register under the state's legislation.

Exempt from Payment of Professional Tax

Individuals earning a salary below Rs.1000/- per month, those in professions with annual incomes not exceeding Rs.12000/-, and traders with annual turnovers not above Rs.1,00,000 are exempt from paying Profession Tax.

Telangana Professional Tax Slab

The professional tax slabs in Telangana for individuals are as follows:

For more information on Telangana Professional Tax Slab, you can refer to the relevant guidelines.

Documents Required

Applicants must provide the following documents along with the application form:

• Memorandum of Association
• Articles of Association
• PAN Card
• Aadhar card
• Lease Agreement
• Employer Address Proof and ID Proof with photos
• Board resolution for authorised signatory
• Number of directors and the photos and proof of residence of the Proprietor, Managing Partner, and Managing Director
• Number of employees and their details
• Bank details with a cancelled cheque
• Sale deed / Rental agreement / Lease deed / No objection certificate for rent-free places of business

Professional Tax Registration

To streamline Profession Tax Registration, dealers can submit applications through three methods:

Through Online Mode:

• Applicants can file the P Tax registration application ONLINE via the CTD Portal and upload supporting documents.

Through Courier/Registered Post:

• Applications can be submitted online or offline, with documents sent to the concerned Registering Authority via Courier or Registered Post.

In-person before the Concerned Registration Authority (DCTO):

• Applicants can submit their application and all supporting documents in person to the Registration Authority.

Penalties for Not Filing Professional Tax Return

Failing to pay the tax amount within the specified time may result in a penalty of up to fifty percent of the due tax amount. More information on the consequences of not filing a professional tax return is available.

Cancellation of Certificate of Enrolment

• The assessing authority may cancel an enrolment certificate if the assessee is deceased or no longer liable to pay tax.

Cancellation of Certificate of Registration

• A registration certificate may be cancelled if the employer ceases to function as one.

PT Registration Certificate

• Upon approval, the Registration Certificate is scanned and uploaded to the dealer login, enabling the commencement of business activities.
• The original certificate will be sent to the dealer's premises by RPAD or courier.

Professional Tax Return Filing Fees

For information on the fees associated with professional tax return filing, visit our detailed guide.

Online Application Procedure

To register for professional tax online, follow these steps:

1. Visit the official website of the Telangana government's Commercial Tax Department.
2. Click on "E-Registration" on the portal's homepage. More details on the process can also be found on the professional tax return filing page.
3. Select "PT (Professional Tax) Registration" from the dropdown list.
4. On the login screen, sign in with a valid email ID and verification code. After entering details, submit the form.
5. If previously registered for activities such as VAT/CST/LT/ET, enter the respective TINs to populate user data. Edit and apply the necessary data.
6. For new users, enter organization and required details, then submit the form. Verify all entered information and proceed.
7. A reference number for future use will be generated. Enter owner or managing personnel details as prompted.
8. If no authorized person is appointed, select "No". If appointed, select "Yes" and enter their details. Provide bank account details as needed.
9. Enter bank account details and add if more than one is used. Enter details of additional business places if required. Verify and finish the registration.

Track Registration Status

To verify registration status, follow these steps:

1. Revisit the Telangana Commercial Tax Department portal.
2. Click on the Track Registration Status option from the dealer menu.
3. Select the professional tax category and enter the reference number.
4. Click on the "Search" button to track your application status.

Processing Time

The Professional Tax registration application processing takes one working day from receipt of application and supporting documents.

Concerned Authority

The Deputy Commercial Tax Officer is the authority responsible for issuing the Professional Tax Registration certificate.

Issuance of Registered Certificate

Upon approval of your registration application, the Registered Professional Tax certificate will be scanned and uploaded to the dealer login. Post scan, the dealer is authorized to initiate business activities. The original certificate will be sent by RPAD or courier.