Professional Tax Return Filing
File periodic professional tax returns and remittances as required by the applicable state.
What's covered
- Professional Tax (PT) is a state-level levy on individuals engaged in professions, trades, callings, and employments. It is one of the few taxes administered entirely by state governments, so the rules, forms, due dates, and slab amounts differ from state to state.
- In Telangana, every employer who pays salaries above the applicable slab threshold must deduct Professional Tax from the employee's salary and remit it to the Telangana Commercial Taxes Department on a monthly basis. The monthly return is filed in Form V and the payment is due by the 10th of the following month.
- Telangana's current salary slabs: employees earning above ₹15,000 up to ₹20,000 per month are liable to ₹150; employees earning above ₹20,000 per month are liable to ₹200 per month — this ₹200 slab is the standard top slab applicable to the majority of employed professionals.
- For businesses operating in states other than Telangana, Professional Tax procedures, forms and due dates vary — each state has its own PT Act. The guidance on this page is anchored to Telangana for local SEO, but the firm advises clients across states; the applicable state rules apply in each case.
How we work
- 01
Obtain PT registration for the employer
Register the establishment with the Telangana Commercial Taxes Department as a PT employer. The employer is issued a PT Registration Certificate, which is the basis for deducting and remitting tax on behalf of employees.
- 02
Determine PT liability for each employee
At each wage cycle, check each employee's monthly gross salary against the Telangana PT slabs. Employees earning above ₹15,000 up to ₹20,000 per month attract ₹150; employees above ₹20,000 per month attract ₹200. Employees below the lowest notified slab have no PT deduction.
- 03
File Form V and remit by the 10th
File the monthly Professional Tax return in Form V through the Telangana Commercial Taxes portal and pay the accumulated PT by the 10th of the month following the deduction month. Both the return and the payment must be completed by this date.
- 04
Issue PT deduction certificates as required
Maintain a record of PT deductions for each employee and issue a certificate of deduction when requested. These records may be required during PT departmental assessments or when employees claim PT as a deduction in their individual income-tax returns.
Documents required
- PT Registration Certificate of the employer from the Telangana Commercial Taxes Department
- Salary register showing each employee's monthly gross salary for the return period
- Acknowledgement copies of previously filed Form V returns
- Bank confirmation of the monthly PT remittance
Applicable laws & forms
- Telangana Tax on Professions, Trades, Callings and Employments Act 1987 — the primary statute governing Professional Tax in Telangana
- Form V — monthly return filed and payment remitted by the 10th of the following month through the Telangana Commercial Taxes portal
- Income-tax Act 1961 — Professional Tax deducted from salary is a deduction available to the employee under Section 16(iii) of the Act
Frequently asked questions
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