Professional tax is a state-level tax on income earned by way of profession, trade, calling or employment. In Andhra Pradesh it is levied by the Commercial Taxes Department and applies to salaried employees, professionals and businesses. This guide explains the current slabs, who pays, the registration process and due dates in Andhra Pradesh.<\/p>\n
Professional tax is a direct tax imposed by state governments on persons earning an income through employment or a profession, trade or business. Although it is a state levy, it is backed by Article 276 of the Constitution, which also caps the maximum professional tax at Rs. 2,500 per year. The professional tax you pay is deductible from your salary income under Section 16 of the Income-tax Act.<\/p>\n
| Monthly salary \/ wage<\/th>\n | Professional tax per month<\/th>\n<\/tr>\n<\/thead>\n |
|---|---|
| Up to Rs. 15,000<\/td>\n | Nil<\/td>\n<\/tr>\n |
| Rs. 15,001 to Rs. 20,000<\/td>\n | Rs. 150<\/td>\n<\/tr>\n |
| Rs. 20,001 and above<\/td>\n | Rs. 200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The annual professional tax is capped at Rs. 2,500<\/strong>. The state government can revise these slabs, so it is worth confirming the current figures before filing.<\/p>\n The Commercial Taxes Department<\/strong> of Andhra Pradesh administers professional tax.<\/p>\n Salaried employees:<\/strong> The liability is the employee’s, but the employer deducts professional tax from salary and deposits it with the department. Every employer must obtain a Registration Certificate<\/strong> (to deduct and pay PT for employees) and an Enrolment Certificate<\/strong> (for the employer’s own PT liability).<\/p>\n Self-employed professionals:<\/strong> Freelancers and self-employed persons must enrol themselves and pay their professional tax directly.<\/p>\n Employers and professionals register on the Andhra Pradesh Commercial Taxes portal (apct.gov.in<\/strong>), obtain their PT registration\/enrolment number (PTIN), and pay online:<\/p>\n Employers file a monthly return (Form I) for tax deducted from employees, while enrolled persons pay their annual liability (Form II).<\/p>\n An enrolled person who received the enrolment certificate on or before 31 May must pay by 30 June<\/strong> of that year; those enrolled later must pay within one month<\/strong> of the date of enrolment. Employers deposit the tax deducted from salaries within the prescribed time each month. Non-payment or late payment attracts a penalty, generally in the range of 25% to 50% of the tax due, apart from interest.<\/p>\n Certain categories are exempt from professional tax in Andhra Pradesh, including persons with a permanent physical disability of 40% or more, and specified small operators. Because exemptions and slabs are revised from time to time, confirm the latest position with the department or your consultant before relying on an exemption.<\/p>\n |