Professional Tax in Hyderabad, Telangana
Professional tax is a direct tax levied by the State Government on all kinds of professions, trades and employment in proportion to the income of the individual. Article 276, Clause 2 of the Indian Constitution covers the provision concerning professional tax in the country. Professional tax is imposed by state governments on the individuals who are employed in governmental, private and non-governmental organizations. The quantum of levy varies according to the strata of income.
Who Pays Professional Tax in Hyderabad or the State of Telangana?
As per the Telangana Profession Tax Act, 1987, the Commercial Taxes Department regulated by the Telangana government is entrusted with the responsibility for collection of the profession tax due in the state.
Salaried Individuals: The employers are entrusted with the responsibility of paying the profession tax on employees’ behalf after deducting it from their salary. The employees can claim for the income tax deduction on the profession tax under Section 16(iii) of the Income Tax Act, 1961.
Self-Employed: Though the same slab rate is applicable for the self-employed individuals, they need to self-deposit the profession tax. Further, they can not claim it for the tax deduction in their income tax returns.
Categories of individuals that can claim exemption from paying professional tax:
Professional Tax Slab Rates in Hyderabad, State of Telangana
As per the Telangana Profession Tax Act, 1987, the Commercial Taxes Department regulated by the Telangana government is entrusted with the responsibility for collection of the profession tax due in the state. The professional tax slab rate is revised every year. Given below is the professional tax slab rate of Andhra Pradesh for the financial year 2015-2016 depending on the salary.
|Monthly Salary (Rs.)||Professional Tax Payable Per Month|
|15000 to 20000||Rs. 150|
|Above 20000||Rs. 200|
Professional Tax Slab rate for Professionals including Legal practitioners, Chartered Accountants, Engineers, Architects, Management Consultants, Medical Practitioners, Journalists, Medical Consultants, Dentists, Radiologists, Pathologists whose standing in the profession is:
|Upto 5 years||NIL|
|More than 5 years||Rs. 2500 per annum|