Professional tax is the tax and the same collected by the State Government in India. Professional tax is required to pay if anyone an earning income from salary or any profession.
The employer is liable to pay deducted tax to the State Government.
In case of other professionals such as chartered accountant, company secretary, doctor, lawyer etc. the tax is liable to be paid by the Individual himself.
Professional tax rates are different based on the state.
Any salaried employee paid professional tax to the State Government is permitted as a deduction under section 16 of the Income tax act, 1961.
Professional tax slab rates in Telangana State
Monthly slab rates in case of salaried employees and wage earners
Upto 15,000 Nil
From 15,001 to 20,000 Rs.150
Above 20,000 Rs.200
Employer is liable to deduct the tax from their employees salary and the same has to pay State Government by 10th of the following month, example, Professional tax due date for the month of April 2016 is May 10th 2016.
Also, employer has to file a Form V monthly return on or before the due date.
Professional Tax Payment
All companies registered under the companies Act, has to pay Rs.2500 per annum.
Each director of the company has to pay Rs.2500 per annum.
Partnership firm has to pay Rs.2500 per annum.
Each partner of the firm has to pay Rs.2500 per annum.