Professional Tax in Andhra Pradesh Download Professional Tax in Andhra Pradesh PDF Format For Free
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The Andhra Pradesh state government collects professional tax from individuals with different jobs, overseen by the Commercial Tax Department.
Professional tax in Andhra Pradesh applies to professionals as well as salaried employees and self-employed individuals. However, these groups differ in how the tax is calculated and paid. This tax plays a vital role in the development and welfare of Andhra Pradesh.
Professional Tax Slab Rates in Andhra Pradesh
The professional tax slab rates in andhra pradesh are based on different income levels to ensure fairness. Below is a table showing the tax rates by monthly income.
Professional Tax for Salaried Employees:
| Sr No. | Monthly Income (INR) | Tax Rate (INR per Month) |
|---|---|---|
| 1 | Up to ₹15,000 | Nil |
| 2 | From ₹15,001 to ₹20,000 | ₹150 |
| 3 | Above ₹20,000 | ₹200 |
Andhra Pradesh Professional Tax Structure for Certain Professionals
| Category | Criteria | Professional Tax (per year) |
|---|---|---|
| Contractors | Annual turnover below ₹10 lakh | Nil |
| Annual turnover ₹10 lakh – ₹25 lakh | ₹2,000 | |
| Annual turnover above ₹25 lakh | ₹2,500 | |
| Owners/Lessees of Factories under Factories Act, 1948 | Turnover below ₹10 lakh | Nil |
| Turnover ₹10 lakh – ₹25 lakh | ₹2,000 | |
| Turnover above ₹25 lakh | ₹2,500 | |
| Owners/Lessees of Hotels/Restaurants/Bars/Lodging Houses | Turnover below ₹10 lakh | Nil |
| Turnover ₹10 lakh – ₹25 lakh | ₹2,000 | |
| Turnover above ₹25 lakh | ₹2,500 | |
| Legal, Technical & Professional Services (Advocates, CAs, Engineers, Doctors, Architects, Journalists, Brokers, etc.) | Experience up to 5 years | Nil |
| Experience more than 5 years | ₹2,500 | |
| Cinema industry professionals include directors, actors, writers, singers, musicians, technicians, and other crew members. | N/A | ₹2,500 |
| Co-operative Societies registered under the A.P. Co-operative Societies Act, 1964, and engaged in any profession, trade, or calling: | Village & Mandal level | Nil |
| District & State level | ₹2,500 | |
| Partners engaged in a profession, trade, or calling of a firm. | Partners drawing remuneration from the firm | ₹2,500 |
| DVD, CD, Video Cassette Libraries | – | ₹2,500 |
| Weigh Bridge Operators | – | ₹2,500 |
Andhra Pradesh Professional Tax Applicability
In Andhra Pradesh, professional tax is mandatory for many individuals, including salaried employees, self-employed professionals, and business owners. Municipal corporations collect the tax based on earnings from salaries, wages, or commissions.The usual tax rate is Rs. 200 monthly or Rs. 2400 annually. Specific groups, however, qualify for exemptions that relieve them from this tax.
| Sr No. | Exempted Group | Description |
|---|---|---|
| 1 | Government Employees | Exempt From Professional Tax |
| 2 | Ex-servicemen and Dependents | “ |
| 3 | Persons With Disabilities (PWD) | “ |
| 4 | Employees Earning Less Than ₹15,000 per Month | “ |
| 5 | Agricultural Workers | “ |
| 6 | Handicraft Workers | “ |
| 7 | Poultry, Sericulture, and Beekeeping Workers | “ |
| 8 | Unorganized Sector Workers | “ |
| 9 | Small-Scale Industry Workers | “ |
| 10 | Employees in Government-Recognized Organizations | “ |
These exemptions support economic diversity and aid specific groups financially.
What is the Process for Paying Professional Tax Online in Andhra Pradesh?
The Online Payment of Professional Tax in Andhra Pradesh Involves Two Distinct Forms: Form I and Form II. Each Form has Its Own Process on the Commercial Taxes Department’s Official Website.
Form I Return (Monthly Tax Return)
- Navigate to ‘Make Payment’ on the website.
- Choose ‘Online Payment’ and proceed through your preferred payment gateway.
- After payment, a confirmation message is displayed, which you can print for your records.
Form II Return (Annual Tax Return)
This can be done via Direct Payment Method or After Login Method
Direct Payment Method
- Go to ‘My Profession Tax’ and select ‘e-payment’.
- Enter your Form II PTIN and captcha to receive an OTP.
- Enter the OTP, select the financial year, and complete the payment.
After Login Method
- Access ‘My Profession Tax’ then ‘Taxpayer Login’.
- Navigate to ‘Dashboard’, then ‘Returns’, and select Form II payment.
- Choose ‘Financial year’, click ‘Make Payment’, and proceed online.
- Upon completion, a screen message will appear for printout.
These processes ensure smooth and documented tax payments.
Andhra Pradesh Professional Tax Payment Due Date
The professional tax due date in Andhra Pradesh depends on the enrollment date of the assessee. The timelines are as follows:
- Employers holding a Registration Certificate: Professional tax must be paid on or before the 10th of every month.
- Individuals enrolled on or before May 31 of a financial year: Professional tax must be paid on or before June 30 of that year.
- Individuals enrolled after May 31: Payment must be made within one month of the enrollment date.
As per Rule 14 of the Andhra Pradesh Professional Tax Act, 1987, failure to make payments within the prescribed timelines attracts penalties as stipulated by the state government.
Andhra Pradesh Professional Tax Late Payment Penalty
If an enrolled assessee in Andhra Pradesh fails to pay professional tax on time, they must pay interest on the pending amount. Additionally, if the tax is not paid within the specified time without a valid reason, the assessing authority can impose a penalty of not less than 25% and not exceeding 50% of the unpaid tax.
Andhra Pradesh Professional Tax Forms
In Andhra Pradesh, different professional tax forms are prescribed based on the category of assessee and the purpose of filing. The table below lists the forms along with their intended uses.
| Forms | Details |
|---|---|
| Form I | An application for registration (to be filed by an employer). |
| Form II | Certificate of enrollment/revision to be filed by an assessee other than a salaried person or wage earner, such as a professional, business owner, or self-employed individual. |
| Form III | A certificate that must be furnished to the employer by an enrolled employee. |
| Form IV | Certificate to be submitted by a person employed under more than one employer to clarify professional tax liability. |
| Form V | This is a return to be filed by an employer. An assessee also uses this form for claiming a refund of excess professional tax paid. |
| Form VI | A payment slip is used for making a payment of professional tax to the state government. |
| Form VII | A receipt issued to the assessee for the amount of tax, interest, or penalty paid. |
| Form XII | A revision application to be filed by an assessee against an order of assessment, penalty, or interest. |
For additional details, visit the Andhra Pradesh Commercial Taxes Department’s forms section.
Conclusion
HR professionals should stay informed about professional tax in Andhra Pradesh to ensure compliance. Understanding the implications of non-compliance and the associated penalties is crucial.
Regular updates and training sessions help maintain staff awareness. This tax affects all salary brackets, requiring diligent management and timely payment. Monitoring tax payment deadlines and ensuring all employees are correctly assessed can prevent legal issues.
What is the Professional Tax Limit in Andhra Pradesh?
In Andhra Pradesh, professional tax does not apply to salaried individuals with an income of up to ₹15,000 per month. For self-employed professionals and business owners, the tax is levied if their annual income exceeds the ₹1,80,000 threshold.
How to Pay Professional Tax Online in Andhra Pradesh?
Professional tax in Andhra Pradesh can be paid conveniently online through the official Commercial Taxes Department portal. Employers and self-employed professionals can register, generate challans, and make payments online.
Is Professional Tax Applicable in Andhra Pradesh?
Yes, professional tax is applicable in Andhra Pradesh. It is a state-level tax imposed on all individuals engaged in a profession, trade, calling, or employment, including salaried employees, self-employed professionals, and business owners.
What is the Professional Tax in Andhra Pradesh?
Professional tax in Andhra Pradesh is a state government tax levied on all working individuals and professionals. Salaried employees, professionals, and business owners must pay professional tax based on their income or turnover. The minimum tax rate in Andhra Pradesh is Rs 150 per month and can go up to Rs 2500 per month.
Who is Exempt from Professional Tax in Andhra Pradesh?
The Andhra Pradesh state government has exempted employees earning below ₹15,000 per month, self-employed individuals with an annual income below ₹1,80,000, and specific categories, including individuals with physical disabilities, agriculturalists, handicraft workers, parents of children with permanent/mental disabilities, and workers in the unorganized sector.
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