Andhra Pradesh Professional Tax - Complete Information
Professional Tax in Andhra Pradesh is a state-level tax levied on individuals earning income through employment, profession, or trade. It is governed by the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act. The revenue collected helps the state in developmental and welfare initiatives.
Professional tax is tax payable to the government in India and is mandatory just like income tax.
Andhra Pradesh Professional Tax Slab Rate
Andhra Pradesh follows a specific professional tax slab rate structure, which is revised annually. Below is the applicable professional tax slab based on monthly salary ranges:
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 |
AP Professional Tax Due Dates and Penalties
The professional tax in Andhra Pradesh is usually collected monthly from salaried individuals by their employer. The due date for employers to remit the collected tax is typically within 15 days of the month end.
Penalties:
- Late payment penalty: Rs.25 per day of delay.
- Interest on delay: Up to 1.5% per month.
- Failure to register: Rs.5 per day until registration is completed.
- False information: Rs.500 to Rs.5,000 depending on the severity.
How to Pay Andhra Pradesh Professional Tax Online
Individuals and employers can pay professional tax online via the official Andhra Pradesh government portal:
Step 1: Visit the AP Commercial Taxes website.
Step 2: Register/Login as an employer or individual.
Step 3: Choose “Professional Tax” under services.
Step 4: Enter required details like PAN, employer ID, month, etc.
Step 5: Calculate the tax due and proceed to payment.
Step 6: Save the acknowledgement for your records.
Who has to Pay Professional Tax in Andhra Pradesh?
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
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.
Exemptions from AP Professional Tax
Not everyone is required to pay professional tax in Andhra Pradesh. The following individuals are exempted:
- Senior citizens (age 60 and above).
- Individuals with physical disability (at least 40%).
- Parents or guardians of persons with mental disability.
- Members of armed forces (as per Article 276 of the Constitution).
- Individuals earning less than Rs.15,000/month.
FAQs on Andhra Pradesh Professional Tax
- Who is liable to pay professional tax in Andhra Pradesh?
Any person earning an income from salary, profession, trade, or calling is liable to pay professional tax in Andhra Pradesh. This includes salaried employees, self-employed professionals like doctors, lawyers, and freelancers.
- What is the slab rate for AP Professional Tax?
Individuals earning up to Rs.15,000 per month are exempt from paying professional tax. Those with a monthly income between Rs.15,001 and Rs.20,000 are required to pay Rs.150 per month. For individuals earning above Rs.20,000 per month, the tax is Rs.200 per month, with a higher rate of Rs.300 applicable for the month of March. The total annual professional tax liability is capped at Rs.2,500.
- How can I pay Andhra Pradesh Professional Tax online?
You can pay the tax through the AP Commercial Taxes Department website. Register or log in, navigate to the Professional Tax section, fill out your details, and make payment using online banking, UPI, or card.
- Are there any exemptions under AP Professional Tax?
Yes, exemptions are available for senior citizens (60+), individuals with 40% or more disabilities, parents of mentally challenged individuals, members of the armed forces, and those earning below ₹15,000 per month.
- What happens if I don’t pay professional tax in AP on time?
Failure to pay on time can result in a Rs.25/day penalty, 1.5% monthly interest, possible legal action, and disqualification from government tenders or registrations.
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