If you are a salaried or self-employed individual, you are liable to pay professional tax in Andhra Pradesh. But you might be thinking that if you already pay income tax to the Central Government, why would you need to pay another type of tax to your state government? Why is it charged particularly for a state? We agree it might be a little confusing.
To get answers to the above questions and understand everything about professional tax payments in Andhra Pradesh read on further.
Professional Tax in Andhra Pradesh
Under the APPT (Andhra Pradesh Profession Tax) Act, 1987, professional tax is levied on every salaried individual or person involved in professions like doctors, lawyers, chartered accountants, entrepreneurs, etc. The State's Commercial Taxes Department has the power to collect professional taxes. Although the tax payable depends on monthly income, the annual professional tax payment doesn’t exceed Rs 2,500.
Professional Tax Slab Rate in Andhra Pradesh
The professional tax slab rates for employees in Andhra Pradesh are stated in the table below:
Monthly Salary | Professional Tax (per month) |
Up to Rs 15,000 | Nil |
Rs 15,001 to Rs 20,000 | Rs 150 |
Rs 20,000 and above | Rs 200 |
The professional tax slab rates for certain professionals in Andhra Pradesh are:
Turnover | Professional Tax (per month) |
Contractors with an annual turnover below Rs 10 lakh | Nil |
Contractors with an annual turnover from Rs 10 lakh to Rs 25 lakh | Rs 2000 |
Contractors with an above Rs 25 lakh | Rs 2500 |
A person employed in the cinema industry, cinema producers, lyricists, junior artists, music directors, etc | Rs 2500 |
Owners or Lessees of factories registered under the Factories Act, 1948, with an annual turnover below Rs 10 lakh | Nil |
Owners or Lessees of factories registered under the Factories Act, 1948, with an annual turnover of Rs 10 lakh to Rs 25 lakh | Rs 2000 |
Owners or Lessees of Factories Act, 1948, with an annual turnover of over Rs 25 lakh | Rs 2500 |
Owners of Lessees of hotels, lodging, bars, restaurants, etc Factories Act, 1948, with a turnover below Rs 10 lakh | Nil |
Owners of Lessees of hotels, lodging, bars, restaurants, etc, with a turnover below Rs 10 lakh | Nil |
Owners of Lessees of hotels, lodging, bars, restaurants, etc, with a turnover between Rs 10 lakh to Rs 25 lakh | Rs 2000 |
Owners of Lessees of hotels, lodging, bars, restaurants, etc, with a turnover above Rs 25 lakh | Rs 2500 |
Co-operative societies registered under the A.P.Co-operative Societies Act, 1964 involved in any profession at Mandal and Village level | Nil |
Co-operative societies registered under the A.P.Co-operative Societies Act, 1964 involved in any profession at district and State level societies. | Rs 2500 |
Every partner engaged in profession, trade and calling of a firm drawing remuneration from the firm | Rs 2500 |
DVD, CD libraries, Video Cassettes | Rs 2500 |
Weigh Bridge Operators | Rs 2500 |
Enrollment tax depends on various parameters such as annual income, type of profession etc., click here to know in detail.
Andhra Pradesh Professional Tax Online Payment
You can pay professional tax in Andhra Pradesh by filing two types of returns - Form I and Form II.
- Form I Return (Monthly Tax Return)
- On the official website of the Commercial Taxes Department, click on the 'Make Payment' option.
- Now select ‘Online Payment’ and complete the payment on your preferred payment gateway.
- After that, a message will appear on the screen detailing all payment details. You can print it for future reference.
- Form II Return (Payment made during a fiscal year)
You can pay it in two ways, which include:
- Direct Payment
- After Login
Direct Payment
- Once you visit the website of the Commercial Taxes Department, click on 'My Profession Tax' and then 'E-payment'
- Once you provide Form II PTIN and captcha code, you will receive an OTP on your registered mobile number.
- Enter the OTP and choose the financial year for which you are paid the professional tax.
- Complete the payment.
After Login
- After visiting the website mentioned above, click on ‘My Profession Tax’ and then ‘Taxpayer Login’.
- Click on ‘Dashboard’ and then ‘Returns’. Under this, click on Form II payment.
- Select 'Financial year' and click on the 'Make Payment' option.
- Click on ‘Online Payment’ and choose a suitable payment gateway as per your preference.
- Once payment is made, you will receive a message on the screen. You can use the print option to generate a receipt.
Andhra Pradesh Professional Tax Payment Due Date
In Andhra Pradesh, the enrolment date of the assessee determines when professional tax payments are due.
Assessee holding the registration certificate being an employer, if you are eligible to pay professional tax, then you must pay it on or before the 10th of each month. If you fail to make payment of any tax amount within this specified time, then the state government will levy a penalty.
As per Rule 14 of the Andhra Pradesh Professional Tax 1987, if you are enrolled or stand enrolled before May 31 of a particular year, you must pay professional tax before June 30. If you enroll after May 31, you must do so within a month of the enrollment date.
Andhra Pradesh Professional Tax Late Payment Penalty
If anyone fails to pay professional tax in Andhra Pradesh, they may have to pay a penalty of 25% to 50% of the tax amount due. This penalty is in addition to the interest on non-payment or late payment of taxes.
Andhra Pradesh Professional Tax Exemption
According to the Andhra Pradesh Tax on Professions, Trades, Vocation and Employments Act, 1987, the following group of people and businesses are not required to pay professional tax in Andhra Pradesh:
- People with 40% disability of any kind
- Public telephone operators
- Commercial establishments with an annual turnover of up to Rs 10 lakh
- People whose monthly salary/wages is not more than Rs 15,000
Professional Tax Forms For AP
Category of assessee | Application Form |
|---|---|
Application of enrollment by employer | Form I |
Application of enrollment by the assessee (other than a person earning salary or wages) | Form II |
Certificate to be furnished to the employer | Form III |
certificate to be furnished by a person if he is employed under more than one employer | Form IV |
Return to be filed by employer | Form V |
Paying in slip for making Payment | Form VI |
Receipt for the amount of tax, Interest and Penalty | Form VII |
Revision Application against an order of assessment appeal penalty interest | Form XII |
Refund Claim | Form V |
Final Word
Every earning individual with a minimum salary of Rs 15,001 is eligible to pay professional tax in Andhra Pradesh. As discussed above, the amount payable varies depending on the income. Make sure to pay the tax on time as per your employment type and tax rate to avoid hefty penalties.