Andhra Pradesh Professional Tax Slab

Professional tax slabs in Andhra Pradesh are revised on an annual basis. Tax is deducted from an employee’s monthly income based on the slab rates and paid to the state. The amount deducted as professional tax at the time payment varies based on the individual’s income.

Professional Tax in India

Professional tax is tax payable to the government in India and is mandatory just like income tax. The tax is levied on salaried individuals or people practising professions such as doctor, lawyer, chartered accountant, etc. The tax has to be paid to the state government by the owner of the business. Applicability of professional tax is well stated in article 276 of Constitution of India. The maximum amount payable as professional tax is Rs.2,500 per year. Professional tax is one of the main sources of revenue for the government in India.

Andhra Pradesh Professional Tax Slab Rate

Andhra Pradesh has its own professional tax slab rate. The professional tax slab rate is revised every year. Given below is the professional tax slab rate of Andhra Pradesh for the financial year 2019-2020 depending on the salary.

Monthly Income Professional Tax Levied
For salary up to Rs.15,000 Nil
For salary between Rs.15,001 to Rs.20,000 Rs.150 per month
For salary of Rs.20,001 and above Rs.200 per month
Who has to Pay Professional Tax in India?

As stated in article 276 of the Indian constitution, any resident of India who is earning income from salary or is practising a profession such as doctor, chartered accountant, lawyer, etc should pay professional tax to the state government compulsorily. The professional tax is to be paid to the state government and the professional tax levied is different for each state. Given below is a list of states in India where professional tax is levied.

  • Karnataka
  • Madhya Pradesh
  • Andhra Pradesh
  • Tamil Nadu
  • West Bengal
  • Telangana
  • Gujarat
  • Assam
  • Chhattisgarh
  • Kerala
  • Meghalaya
  • Orissa
  • Tripura
  • Maharashtra
Professional Tax Slab Rate

The professional tax to be paid to the state government depends on the professional tax slab rate in the particular state for that year. The professional tax slab rate varies from each state and is revised every year. The taxpayer has to pay the tax according to the tax slab rate and their income in accordance with the tax slab rate.

Who Deducts Professional Tax?

Professional tax is deducted by the owner of the business from the income of the employees. The tax is later collected and paid to the state government. The business owner should apply for registration of professional tax within 30 days of employing an individual.

Due Date and Penalties

The Payment due date for AP professional tax is based on certificate of enrollment which depends on the time frame. You have to pay professional tax before June 30th of the year if you obtained the certificate of enrollment on or before May 31th if pay within a month of the day of enrollment. The penalty for late payment will be levied which shall not be less than 25% but shall not exceed 50% of the tax due

News About Andhra Pradesh Professional Tax

  • Annual professional tax increased by the Andhra Pradesh government

    The annual professional tax has been increased by Rs.750 to Rs.1,250 for a year under certain categories by the Andhra government. The increase will come into effect immediately. A notification about the increase in annual professional tax was issued on 24 August 2020. As per the notification, two slabs of professional tax have been increased on certain categories from Rs.1,250 to Rs.2,000 to Rs.2,500 in a year. According to a notification, commercial establishments that make a turnover of up to Rs.10 lakh do not have to pay professional tax. In case commercial establishments make a turnover from Rs.10 lakh to Rs.25 lakh and above Rs.25 lakh will have a professional tax of Rs.2,000 and Rs.2,500. The notification further added that the maximum professional tax cannot be more than Rs.2,500. Way bridge operators, video libraries, district and state-level cooperative societies, and film industry workers will have to pay a professional tax of Rs.2,500.

    03 September 2020

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