Professional Tax in Telangana (2026): Slabs, Employer Registration, Enrolment, Form V and Penalties
Telangana levies professional tax under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987. Employers deduct nothing from salaries up to ₹15,000 a month, ₹150 a month from salaries of ₹15,001 to ₹20,000, and ₹200 a month above ₹20,000, and pay it with a Form V return by the 10th of the following month. Companies, directors drawing remuneration and most professionals after five years of practice also pay an annual tax in their own right, usually ₹2,500. Registration on the Commercial Taxes portal is free and gives a PTIN. The slabs were not changed in the 2026-27 Budget. This guide covers who pays, how to register, monthly compliance, penalties and the income-tax deduction.
Salary slabs (deducted by the employer)
| Monthly salary or wages | Professional tax a month |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 |
| Above ₹20,000 | ₹200 (₹2,400 a year) |
“Salary or wages” includes basic pay, dearness allowance and all other remuneration received regularly, but not bonus or gratuity. The Constitution caps professional tax at ₹2,500 a year per person.
Rates for businesses and professionals (per year)
| Who | Professional tax |
|---|---|
| Companies not registered as dealers, with turnover of ₹10 lakh or more | ₹2,500 |
| Directors drawing remuneration | ₹2,500 each |
| Partners drawing remuneration from a firm | ₹1,250 each |
| Lawyers, chartered accountants, doctors, architects, engineers, consultants and agents | Nil for the first 5 years of practice, then ₹2,500 |
| Traders, registered dealers (including companies) and contractors | Nil below ₹10 lakh turnover; ₹1,250 for ₹10 lakh to ₹50 lakh; ₹2,500 above ₹50 lakh |
| Banks (per branch), call centres and BPOs, telecom and internet providers, cinemas and clubs, lessors of commercial premises | ₹2,500 |
| Anyone else not listed, with income above ₹1.8 lakh a year | ₹2,500 |
Registration and enrolment
- Employers register (section 6(1)) to deduct and pay their employees’ tax. Separate places of work under different assessing authorities need separate registrations.
- Everyone else liable enrols (section 6(2)): the company itself, directors, partners, professionals and traders. One enrolment covers all places in Telangana.
- Time limit: within 30 days of becoming liable, for example of hiring the first employee earning above ₹15,000.
- Terms used: Telangana’s portal issues a PTIN with either a “registration and enrolment” certificate for employers or an “enrolment-only” certificate for others. The PTRC and PTEC labels used in Maharashtra and Karnataka are not used here, though they mean the same thing.
How to register online
- Check by PAN whether a PTIN already exists: businesses registered under GST are usually allotted one automatically in the following month.
- Sign up with an email on the professional tax module of the Telangana Commercial Taxes portal (ptax.tgct.gov.in) and start a new registration.
- Enter the business details, bank account and any additional places of business.
- Upload the documents: proof of the principal place of business (rent agreement, lease or sale deed), business PAN, a recent bank statement, the partnership deed or certificate of incorporation with MoA and AoA, and PAN of partners or directors.
- Submit; an officer reviews it, usually within a working day. If it is returned, resubmit within seven days.
- Download the certificate once the PTIN is issued. There is no registration fee.
Monthly payment and returns
- Employers pay the tax deducted for a month, and file Form V with the number of employees in each salary band, by the 10th of the following month. A return is treated as filed only if the full tax is paid.
- The employer is liable even if it did not deduct the tax from the employee.
- Enrolled persons (companies, directors, professionals) pay their annual tax by 30 June, or within a month of enrolment if they enrol later in the year.
- Two jobs: an employee with more than one employer can give a certificate to one of them and pay the tax directly, so that it is not deducted twice.
Interest and penalties
| Default | Consequence |
|---|---|
| Late payment | Interest at ₹2 per ₹100 per month or part of a month (Rule 24) |
| Not paying within the time allowed | Penalty of 25% to 50% of the tax, plus interest |
| Late registration by an employer | ₹10 to ₹20 a day |
| Late enrolment | Up to ₹5 a day |
| Late Form V return | ₹5 to ₹100 a day |
| Wilful evasion | 1.5 to 3 times the tax |
| Offences | Fine of ₹500 to ₹5,000, and ₹10 to ₹50 a day if continuing; compoundable |
Exemptions
- Salaried employees earning up to ₹15,000 a month.
- Persons with a disability of 40% or more.
- Agriculturists and persons performing religious duties.
- Traditional trades such as goldsmiths, blacksmiths, potters, washermen, barbers, tailors, carpenters, masons, plumbers and electricians.
Several payroll websites list exemptions for senior citizens, armed forces personnel and parents of disabled children in Telangana. Those come from Maharashtra’s law; the Telangana Act does not contain them.
Professional tax and income tax
Under section 19 of the Income-tax Act, 2025, professional tax paid is deductible from salary income, in addition to the standard deduction. The deduction is not available under the new tax regime of section 202, so most salaried employees in 2026-27 get no benefit from it. For an employer or a business, professional tax paid is an allowable business expense.
Checklist for a new Hyderabad business
- Check for an auto-allotted PTIN after GST registration; register on ptax.tgct.gov.in if there is none.
- Pay the company’s annual tax (₹2,500 for most companies) and each remunerated director’s ₹2,500 by 30 June every year.
- Set up payroll to deduct ₹150 or ₹200 a month by salary band.
- Pay and file Form V by the 10th of every month.
- Keep salary registers that match the Form V bands.
Our professional tax registration service handles Telangana and other states, and our state-wise slab guide compares rates across India. To check whether a state levies it at all, use our professional tax state finder.
Frequently asked questions
What is the professional tax in Telangana for a salary of ₹25,000?
₹200 a month, or ₹2,400 a year, because the salary is above ₹20,000.
What is the due date for professional tax in Telangana?
The 10th of the following month for employers, with Form V. Companies and professionals pay their annual tax by 30 June.
Is there a fee for professional tax registration in Telangana?
No. Registration on the Commercial Taxes portal is free.
Did Telangana change professional tax rates in 2026?
No change was made in the 2026-27 Budget, and the 2013 schedule still applies.
TAXAJ handles professional tax, payroll and GST for businesses in Hyderabad. See our page on company registration in Hyderabad.
Last updated 27 October 2026. Sources: Telangana Tax on Professions, Trades, Callings and Employments Act, 1987, sections 2, 5, 6, 7, 8, 10, 11, 12, 21, 22 and 25 and the First Schedule (as substituted by Act 12 of 2013); Telangana Tax on Professions, Trades, Callings and Employments Rules, 1987, Rules 3, 4, 12, 24 and 29; Telangana Commercial Taxes professional tax module help document; Constitution of India, Article 276(2); Income-tax Act, 2025, sections 19 and 202; PRS analysis of the Telangana Budget 2026-27. General information only.
