Professional Tax Andhra Pradesh: Tax Slab, Payment, Due Dates & Applicability

Introduction

A professional tax in Andhra Pradesh is a state-imposed tax imposed on individuals and businesses involved in various professions, trades, and callings. Salaried individuals and self-employed professionals who earn a specified income are subject to the Andhra Pradesh Tax on Professions, Trades, Callings, and Employments Act, 1987. In most cases, employers deduct and remit the tax on behalf of their employees, whereas self-employed individuals pay the tax directly to the government. According to the Act, the maximum liability for the tax is capped at 2,500 per year. The tax aims to contribute to state revenue. The Andhra Pradesh Commercial Taxes Department has made compliance smooth for taxpayers by streamlining the professional tax registration and filing procedure by an online platform.

Who is Responsible for deducting Professional Tax Andhra Pradesh?

Below mentioned two categories are responsible for deducting and remitting professional tax in Andhra Pradesh:

Employers: As per Section 5 of the Andhra Pradesh State Tax on Professions, Trades, Calling and Employments Act, 1987, any employers (Organizations & Businesses) who have salaried employees in their company or organization must deduct professional tax from the employees salaried every month. This deduction amount is remitted to the State Government (Andhra Pradesh Government). According to Rule 13, if the employer fails to deduct and remit professional tax to the government face penalties.

Self-Employed Individuals: As per the Act’s Section 4, any individuals (Professionals, traders, freelancers, business owners, ect) who earns above the prescribed threshold are responsible for ducting Professional tax Andhra Pradesh. For this He/she must register themselves and obtain a PTEC (Professional Tax Enrollment Certificate) first. Professional Tax payments for self-employed persons in Andhra Pradesh are mainly made yearly.

Different Types of Professional Tax Certificate in Andhra Pradesh

According to the PT Act Andhra Pradesh, there are two types of PT certificate. These are as follow:

Professional Tax Enrollment Certificate (PTEC):
The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies , partnership forms , sole proprietors and individual professionals. It is required to pay professional tax for both the business entity and its directors. Form V is used for registering as an employer.

Professional Tax Registration Certificate (PTRC):
Professional Tax Registration Certificate commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee salary and then deposit the same to the authorized state authority. Form II is used for registering as a self-employed individual.

Exemptions for Professional Tax Andhra Pradesh Online

As per Andhra Pradesh PT Act (Andhra Pradesh State Tax on Professions, Trades, Callings, and Employment Act, 1987), only certain individuals are exempted from paying Professional tax:

• Any Senior citizen (above the age of 65).
• Disabled children’s parents and guardians.
• Any disabled (at least 40%) person.
• Armed Forces personnel.
• Government Employees
• Ex-servicemen & Dependents
• Public Telephone Operators

Document Required for Professional Tax Registration Andhra Pradesh

There are several documents required during the Professional tax Registration in Andhra Pradesh. Here are the complete list given below:

1. MoA (Memorandum Of Association)
2. Articles Of Association
3. PAN Card
4. Lease Agreement
5. Address Proof and ID Proof and photos of Employer
6. Board resolution for authorized signatory
7. No. of directors, their Photos and Proof of Residence of proprietor, Managing Partner, Managing Director, authorized person
8. No of employees
9. Registration fees ( Rs 2,500 per director)
10. Bank Details with Cancel Cheque
11. Lease Deed /Sale deed / Rental agreement / No objection certificate in case of Rent Free for "Additional places of Business"

Stepwise process of Professional Tax Registration and Filing in Andhra Pradesh

Before Professional tax filing, a company or individual must register themselves to obtain PTRC (For Employer) and PTEC (for employee/individual). The stepwise process is as follow:

Process of Professional Tax Registration in Andhra Pradesh

Step 1: Visit to the “Andhra Pradesh Commercial Taxes Department’s Official Portal”.

Step 2: After entering the portal, Click on the “My Profession Tax” option, and select “e-Registration” for starting the registration process.

Step 3: Select appropriate category (Form I for PTRC and Form II for PTEC) and fill accurately with relevant details and information including business or personal details, employee details (only for employers) profession and income.

Step 4: Attach all the required documents (listed above) to complete the registration process.

Step 5: Once the form is completed with appropriate details and documents, you will need to pay registration fees (if applicable).

Step 6: After this form submission, once the government verifies all the details will issue a certificate.

Process of Professional Tax Filing in Andhra Pradesh

Step 1: Log in to the Andhra Pradesh Commercial Taxes Department’s Official Portal using the credentials created during registration.

Step 2: Select the relevant filing period (monthly for employers, annually for self-employed individuals).

Step 3: Enter all the details such as income or employee salary details (for employers) and the corresponding professional tax payable. For employers, the tax will be automatically calculated based on salary slabs.

Step 4: Generate the payment challan and make the payment using online banking or other available payment methods.

Step 5: Submit the return online after completing the payment. Ensure that the return is filed before the due date to avoid penalties.

Professional Tax Andhra Pradesh Tax slab

The complete tax slab of Professional tax Andhra Pradesh mentioned below:

Professional Tax Andhra Pradesh Due Dates

The date on which certificate of enrollment obtained determines the professional tax payment deadline. If you received the certificate of enrollment on or before 31st May, required to pay the professional tax till 30th june.

You have one month from the enrollment date to pay the professional tax if you enrolled after May 31st.

Penalties with Respect to Professional Tax Andhra Pradesh

The below mentioned are the applicable penalties:

Why to Choose Bizfoc?

Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.

Conclusion

The aspect of professional tax in Andhra Pradesh plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax which is to be done by the employers of any profession or trade towards the respective legislation.

Frequently Asked Questions