Legal Guide

Learn about Professional Tax Andhra Pradesh Payment

by Bhavya Choudhary · 4 min read

professional tax andhra pradesh payment

The phrase ‘professional tax’ is not unfamiliar to salaried persons of Andhra Pradesh with a few years of experience. This is because they see it monthly on their pay stubs and annually on their Form 16s. However, the phrase professional tax may not be evident to newcomers, those who have just joined the professional field, or a layperson.

This article discusses Professional Tax Andhra Pradesh Payment. Therefore, keep reading to discover all there is to know about Professional Tax Andhra Pradesh Payment.

What is Professional Tax Andhra Pradesh Payment?

  • Professional tax is a direct tax levied by the Andhra Pradesh state government on professionals. This tax is imposed on paid persons as well as all types of professions, commerce, and employment, including self-employed individuals.
  • In Section 276 of the Indian Constitution, laws pertaining to professional tax in India are outlined.
  • Under Section 16 of the Income Tax Act, professional taxes are deducted from an individual’s taxable income.

Are you curious about the Professional Tax Andhra Pradesh Payment? Observe the table shown below to know the Professional Tax Andhra Pradesh Payment.

As the meaning of professional tax in AP is now apparent to all, we can move on to the next parts and learn about other crucial facts about Professional Tax Andhra Pradesh Payment.

Who is Responsible for Collecting and Professional Tax Andhra Pradesh Payment?

  • The Commercial Taxes Department is the state department in charge of collecting professional taxes. The maximum annual ceiling on Professional Tax Andhra Pradesh Payment cannot exceed 2,500.
  • Currently, this department is reaching out to individual taxpayers in Andhra Pradesh to educate them on the necessity/importance of paying their professional tax obligations.
  • As previously indicated, the Andhra Pradesh state government imposes a Professional Tax Andhra Pradesh Payment on wage earners. To get an understanding, please read the following parts.

Salaried Individual

  • It is the responsibility of salaried persons, i.e., workers, to pay professional tax in Andhra Pradesh. However, the employer is responsible for deducting and Professional Tax Andhra Pradesh Payment to the State Government on the employee’s behalf.
  • Employers must additionally make Professional Tax Andhra Pradesh Payment based on the income category of corporations, sole proprietorships, partnership businesses, and individuals doing any trade or profession.
  • Employers must get a certificate of professional tax registration in order to pay Professional Tax on a trade or profession. In addition, they must obtain a certificate of professional tax enrollment in order to be authorized to deduct tax.

Self-employed Individual

Self-deposits of professional tax must be made by individuals who engage in freelance work unaccompanied by other workers.

How to make Professional Tax Andhra Pradesh Payment?

There are now two sorts of Returns that taxpayers may file and pay. The following are,

  • Form I refers to the return of monthly tax liability.
  • Form II refers to a payment made within a certain fiscal year.

Here are the steps required to make Professional Tax Andhra Pradesh Payment:

For I Return Form 

  • Step 1 – Visit the Commercial Taxes Department’s official website and click “Make Payment.”
  • Step 2- choose “Online payment” and the payment gateway.
  • Step 3 – Following the completion of payment, a message will show on-screen, and a receipt with a print option will be generated.

Form II Return Form

In Andhra Pradesh, there are two methods to pay Form II tax: 

  • Direct Payment 
  • After Login

Direct Payment

  • Step 1- Navigate to the Commercial Taxes Department’s website and click on “My Profession Tax” and “e-payment.”
  • Step 2- Provide Form II PTIN and captcha code.
  • Step 3 – You will then get an OTP to your registered mobile phone number. Next, input the OTP into the appropriate area.
  • Step 4 – Select the fiscal year and submit payment.

After Login

  • Step 1 – Navigate to the Commercial Taxes Department’s official website and click on “My Profession Tax” and “Taxpayer Login” accordingly.
  • Step 2 – Select ‘Dashboard’ and ‘Returns’ next.
  • Step 3 – Under ‘Return/Payments,’ click on Form II Payment and choose ‘Fiscal year’
  • Step 4 – Select ‘Make Payment’ followed by ‘Online Payment’.

Choose an appropriate payment gateway as the fifth step. A notification will show on the screen upon the completion of payment, and a receipt will be available for printing.

When Is the Due Date for Professional Tax Andhra Pradesh Payment?

  • The deadlines for Professional Tax Andhra Pradesh Payment depend on the enrollment certificate. Individuals are required to make Professional Tax Andhra Pradesh Payment by June 30 of each fiscal year if they have obtained their enrollment certificate by May 31. 
  • In this case, Professional Tax Andhra Pradesh Payment must be made within one month after registration.
  • Individuals who fail to make Professional Tax Andhra Pradesh Payment are required to pay penalties ranging from 25 to 50 percent (neither less nor more) of the amount of tax owed.

Who Is Exempt from Paying Professional Tax Andhra Pradesh Payment?

The following is a list of persons and organizations eligible for exemption from Professional Tax Andhra Pradesh Payment:

  • Physically disabled persons with a 40% impairment of any type (as per the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987)
  • Businesses having annual gross revenue of 10 lakh 
  • Public telephone operators

If there is a work contract and if it comes within the tax slab, the professional tax must be paid. Legal consultation must be taken to get your work contract drafted and to ensure payment of taxes on time. Legal consultation makes your task easier. 

Recent Developments in Professional Tax Andhra Pradesh Payment 

  • The Andhra Pradesh state government raised the professional tax from 750 to 1,250. This applies to a specific category and took effect immediately. 
  • The government issued a notice on August 24, 2020, increasing two Professional Tax slabs from 1,250 to 2,000 to 2,500.
  • In the preceding part, we said that businesses with annual gross revenue of 10 lakh are exempt from paying Professional Tax. 
  • However, if their annual revenue is between 10 lakh and 25 lakh or more beyond 25 lakh, they must pay a Professional Tax of 2,000 and 2,500, respectively.
  • In Andhra Pradesh, way bridge operators, district and state-level cooperative organizations, film industry employees, and video libraries are also required to pay a Professional Tax of 2,500.

Conclusion

Professional Tax in India, unlike Income Tax, is a direct tax administered by the states and not the national government. Since Union territories are under the jurisdiction of the Central Government, they are exempt from the professional tax in India.

Thus, none of the nine union areas are required to contribute. In addition, the majority of these enterprises are small and contribute little to the economy; hence, they are exempt from this tax. To know more about Professional Tax Andhra Pradesh Payment, consult a lawyer online now.

Payment of Professional tax is necessary if you reside in a state where professional tax is levied. To know more about Professional Tax Andhra Pradesh Payment, consult a tax lawyer now.

Bhavya Choudhary

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Bhavya Choudhary

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