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Telangana Professional Tax

Telangana Professional Tax

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 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. A professional tax collected from the salary of a salaried employee is considered a deduction under the Income Tax Act. In this article, we look at the various aspects of Telanagana Professional Tax in detail.

To learn more about Professional Tax Registration and Compliance, Click here.

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. As per the Telangana Professional Tax Act, 1987, the individual is levied to pay a Profession Tax of a maximum of Rs.2500 and a minimum slab as low as Rs.110 per annum.

The taxpayer can obtain West Bengal Professional Tax registration through IndiaFilings.

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 from the wages.

The return can be made by a treasury challan/ DD/ Cheque/ e-payment on the total 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 Professional Tax

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

Suppose the employer is a corporate company, partnership firm, sole proprietorship, etc. In that case, 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.

Telangana Professional Tax Slab

Professional Tax slabs in Telangana on salary or wages of earning individuals are as follows:

S.No Monthly Salary Tax Payable per Month
1. Up to Rs.15,000/- Nil
2. From Rs.15,000/- to Rs.20,000/- Rs.150/-
3. Above Rs.20,000/- Rs.200/-

Click here to learn more about the Telangana Professional Tax Slab.

Documents Required

The required documents are to be furnished 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 authorized signatory
  • The number of directors and the photos and proof of residence of the Proprietor, Managing Partner, and Managing Director.
  • The number of employees and their details.
  • Bank details with a canceled cheque
  • Sale deed / Rental agreement / Lease deed / No objection certificate in the case of rent-free places of business.

Professional Tax Registration

To ease the registration process for dealers applying for Profession Tax Registration, the following process is immediately notified. A dealer seeking Registration under the Profession Tax now has an option to utilize any of the following facilities to apply for Registration:

Through Online mode:

  • A dealer can file the P Tax registration application ONLINE on the CTD Portal and also scan & upload the Supporting documents through the CTD Portal

Through Courier/ Registered Post:

  • A dealer can apply Online/Offline and send the supporting documents to the Office of the Concerned Registering Authority (DCTO) through Courier or Registered Post

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

  • A dealer can submit his application and all supporting documents before the Registration Authority in person.

Cancellation of certificate of enrolment

  • The assessing authority may cancel the enrolment certificate after he is satisfied that the assessee is dead or his liability to pay tax has ceased.

Cancellation of certificate of Registration

  • The assessing authority may cancel the certificate of Registration after he has satisfied that the employer to whom a certificate was granted has ceased to be an employer.

PT Registration Certificate

  • Once your registration application is approved, the Registration Certificate will be scanned and Uploaded to the dealer login.
  • The dealer can initiate all his business activities on receipt of the scanned certificate.
  • The Original certificate shall be couriered/sent by RPAD to the dealer’s premises by the Registering Authority.

Online Application Procedure

To register for professional tax online, follow the steps mentioned below:

Step 1: The applicant has to visit the official website of the Commerical tax department of the Telangana government.

Professional Tax Registration

Step 2: Click on “E-Registration,” on the portal’s homepage.

Step 3: Select “PT (Professional Tax) Registration” from the dropdown list.

Step 3 Telangana Professional Tax
Step 3 Telangana Professional Tax

User Registration

Step 4: On the next page, when the login screen opens up, the user has to sign in by entering a valid email ID and verification code.

Step 4 Telangana Professional Tax
Step 4 Telangana Professional Tax

Step 5: After entering the details, click on the “Submit” icon.

Step 6: If registered with other activities like VAT/CST/LT/ET with the Commercial Taxes Department Of Telangana, enter the respective TINs, and the system will populate your user data. In such a case, the user can edit and apply the required data.

Provide Organization Details

Step 7: For a new user, the user must enter the organization and other required details and click on the “Submit” icon.

Step 7 Telangana Professional Tax
Step 7 Telangana Professional Tax

Step 8: After verifying all entered information, click on the “Next” icon.

Step 9: The system will generate a reference number for further use.

Step 10: Enter the Owner/ Managing Director/ Managing Partner details on the next screen.

Step 10 Telangana Professional Tax
Step 10 Telangana Professional Tax

Step 11: Select the “No” icon if you have not nominated anyone as an authorized person.

Step 12: Select the “Yes” icon if you have nominated an individual as an authorized person and enter the relevant details of the licensed person.

Step 13: Enter all details of the authorized person and click on the “Next” icon.

Step 13 Telangana Professional Tax
Step 13 Telangana Professional Tax

Provide Bank Account Details

Step 14: Enter the bank account details and click on the “Add” icon.

Step 15: The user can enter more than one or two bank account details.

Step 16: Click on the “Next” icon after entering your bank details.

Step 17: Enter the details of additional places of business and click on the “Next” icon.

Step 18: After verifying the filled details, click on the “Finish” icon for a successful registration.

Track Registration Status

The applicant can verify the status of the Registration by following the steps below:

Step 1: The applicant has to revisit the portal of the Telangana Commercial Tax Department.

Step 2: Click on the Track Registration Status option from the new dealer menu.

Step 3: Select the category of professional tax and enter the reference number.

Step 3 Telangana Professional Tax
Step 3 Telangana Professional Tax

Step 4: Click on the “Search” icon to know the status of your application.

Processing Time

The Professional Tax registration application will be processed within one working day from the date of receipt, along with the supporting documents.

Concerned Authority

The Deputy Commercial Tax Officer is the relevant authority responsible for issuing the certified copy of the Professional Tax Registered.

Issuance of Registered Certificate

Once your registration application is approved, the Registered Professional Tax certificate will be scanned and uploaded to the dealer login. The dealer can initiate all his business activities on receipt of the scanned certificate. Then, the original document will be couriered or sent by RPAD to the dealer’s premises.

Penalty for Not Filing Professional Tax Return

Suppose a taxpayer fails to pay off any amount of tax within the specified time limit. In that case, the assessing authority may impose a penalty that will not exceed fifty percent of the tax amount.