Professional tax is a type of state tax which is charged on all persons practicing any profession, trade, calling or employment that exists within a state and every state has its own laws governing the said tax. In regard to the professional tax, the Telangana State Tax on Professions, Trades, Callings, and Employments Act of 1975 exercises its authority in Telangana. This tax provides revenue for local bodies and the state government for the provision of various services, investments in facilities and development agenda. Both the employers and employees must have proper comprehension of part of their legal responsibilities under the Act so that they can avoid the legal repercussions that are associated with the Act.
The employers are mandated to subtract it from the employees’ wages and then pay it to the government on behalf of the employees while on the other hand, Self-employed individuals have the responsibility of registering and processing the Tax on their own. The process includes turning in certain documents and forms needed to be registered and the amount payable is due in terms of the slabs recognized by the state concerning income. Thus, failure to register as a professional tax payer or failure to meet professional tax obligations can attract penalties, interest or legal consequences whenever legal action is taken. Employers and employees know the various fees, deadlines and penalties for them to meet their tax responsibilities in order to facilitate business in Telangana and also respect state laws.
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Telangana is possible through the official site of Telangana Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Telangana:
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Telangana Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
The professional tax in Telangana is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 per month |
| Above ₹20,000 | ₹200 per month |
| Above ₹10,000 | ₹2,500 per annum (₹200 for 11 months + ₹300 for February) |
Note:Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty of 25% to 50% on the outstanding amount may be imposed for late payments.
Conclusion
Professional tax in Telangana therefore refers to a tax levied by the state on the persons practicing different vocations, trades and employment. As per Telangana State Tax on Professions, Trades, Callings, and Employments Act, 1975 it is an essential source of income for local bodies and state government. Employees’ professional tax is recovered from their wages and remitted by the employer while for self-employed persons, professional tax must be paid directly. Noncompliance means that one is subjected to penalties which may include fines of 25% to 50% of the outstanding sum. It becomes very crucial to register and pay at the right time to avoid being on the wrong side of the law and also to conduct business as planned.
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Frequently Asked Questions
Professional tax is a state level tax which is charged on the person exercising some specific profession, trade and employment. Professional tax needs to be paid by any employer or the self-employed person in Telangana. Organizations subtract it from their employee’s wages while individuals who are in business for themselves pay it.
The documents needed for business are the PAN card, Incorporation certificate, bank details, address proof, and details of the directors or partners. For the self-employed person the necessary documents include the PAN card, bank account details, address proof and identity proof.
It can be done online through Telangana Commercial Taxes Department website has given the facility for registration. The following documents are used in registration where one will fill Form I (for employer) or Form II (for self-employed).
Yes, the professional tax in Telangana can be paid online through the official website of Telangana Commercial Taxes Department. Even after a company or a person is registered they can pay their taxes straight online.
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