Telangana Professional Tax

In India, Professional Tax is a tax levied by the respective state’s government on individuals employed in government and non-government sectors, or in practice of any profession such as Chartered Accounts, Lawyers, Doctors, etc. or performing some form of business. The tax imposed differs from state to state due to different tax rates based on the income slab rate set by the particular state government. Professional tax collected from the salary of a salaried employee is considered as a deduction under the Income Tax Act.. In this article, we look at the various aspects of Telanagana Professional Tax in detail.

Provisions for Filing a Monthly Return

All individuals registered under the Professional Tax Act has to submit a return (Form V) every month to the assessing authority depicting the salaries paid and the amount of tax deducted from the wages.

The return can be made by a treasury challan/ DD/ Cheque/ e-payment on the full amount of tax due on or before the 10th day of every month for which the return should be filed and can be done online as well.

Person Responsible for paying to Professional Tax

In the case of employees, an employer is a person responsible for deducting and paying professional tax to the State Government under the specified law.

In case the employer is a corporate company, partnership firm, sole proprietorship, etc., it is required to register and obtain the professional tax registration certificate to pay professional tax on the business or profession.

In the case of individuals who carry on freelancing businesses without any employees are also required to register themselves under the respective state’s legislation.

Exempt from Payment of Professional Tax

Any individual whose salary does not seem to exceed Rs.1000/- per month, individuals in professions whose yearly income does not exceed Rs.12000/- and traders whose annual turnover does not exceed Rs.1,00,000 are exempt from the payment of Profession Tax