What is Professional Tax in Telangana?

Professional Tax (PT) is a state-level tax on employment income levied by the Telangana government under the Telangana Tax on Professions, Trades, Callings and Employments Act. Employers deduct PT from employee salaries based on monthly gross salary slabs and remit it to the state treasury. The maximum PT in Telangana is 200 rupees per month or 2,500 rupees per year.

What are the current Telangana PT slabs for 2026?

Telangana Professional Tax slabs for salaried employees are: gross salary up to 15,000 rupees per month is nil, 15,001 to 20,000 rupees is 150 rupees per month, and above 20,000 rupees is 200 rupees per month (except February which is 300 rupees to reach the annual cap of 2,500 rupees). Self-employed professionals pay based on income brackets specified in the Act.

How does HR software automate Professional Tax compliance?

The software comes pre-configured with current Telangana PT slabs. It automatically calculates the correct PT deduction from each employee salary based on their gross pay bracket, handles the February adjustment for the annual cap, generates monthly PT returns in the prescribed format, and tracks due dates with automated reminders. When the government revises slabs, the system updates automatically.

💰 Professional Tax Guide — Telangana & AP

Professional Tax (PT) Slab Rates, Due Dates & Compliance for Hyderabad Employers

Everything you need to know about Professional Tax in Telangana and Andhra Pradesh — monthly slab tables, Form V filing, payment deadlines, penalties, and how to automate the entire process for your Hyderabad office.

₹200

Max Monthly PT

For salary above ₹20,000

₹2,500

Max Annual PT

Per employee per year

10th

Monthly Due Date

Of the following month

Auto

Filing Ready

Form V auto-generated

📖 Overview

What Is Professional Tax and Who Pays It?

Professional Tax is a state-level tax levied on salaried individuals and professionals. Here's everything Hyderabad employers must know.

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What Is Professional Tax?

Professional Tax (PT) is a state-level tax levied by the governments of Telangana and Andhra Pradesh on income earned by salaried employees, self-employed individuals, and professionals. It is governed by the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987 (and AP's equivalent act). The maximum PT payable is capped at ₹2,500 per annum as per Article 276 of the Constitution.

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Who Is Liable?

In Telangana and AP, employers are responsible for deducting PT from employees' salaries and remitting it to the state government. Both the employer (enrollment certificate holder) and employees (covered under the certificate) have obligations. Every employer with salaried staff in Telangana must obtain a PT Enrollment Certificate (PTEC) and a PT Registration Certificate (PTRC).

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Tax Deduction at Source

Employers must deduct PT from employee salaries every month based on the applicable slab. The deducted amount must be deposited with the state treasury by the 10th of the following month. Professional Tax is deductible under Section 16(iii) of the Income Tax Act and reduces the employee's taxable income.

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Registration & Renewal

Employers must register on the Telangana Commercial Taxes portal within 30 days of hiring their first employee. The annual PT registration renewal is due by 30th June every year. Late registration attracts a penalty of ₹5 per day of delay. Online filing is mandatory for all employers in Hyderabad.

📊 Slab Rates

Professional Tax Slab Rates Telangana & Andhra Pradesh

Monthly PT deduction slabs applicable for FY 2025-26. Compare Telangana and AP rates side by side.

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Telangana Professional Tax Slabs

Applicable to Hyderabad, Secunderabad, Cyberabad

Monthly Gross Salary	Monthly PT Amount	Annual PT
Up to ₹15,000	Nil	Nil
₹15,001 – ₹20,000	₹150/month	₹1,800
Above ₹20,000	₹200/month*	₹2,500*

*February PT is ₹300 to make the annual total ₹2,500 (₹200 × 11 months + ₹300 × 1 month).

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Andhra Pradesh Professional Tax Slabs

Applicable to Visakhapatnam, Vijayawada, Tirupati

Monthly Gross Salary	Monthly PT Amount	Annual PT
Up to ₹15,000	Nil	Nil
₹15,001 – ₹20,000	₹150/month	₹1,800
₹20,001 – ₹25,000	₹200/month	₹2,400
Above ₹25,000	₹200/month*	₹2,500*

*July PT is ₹300 to make the annual total ₹2,500 for the highest slab (₹200 × 11 months + ₹300 × 1 month).

📄 Filing Process

PT Filing, Payment & Compliance Deadlines

Step-by-step process for Professional Tax compliance in Telangana.

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Obtain PT Registration

One-time

Register on the Telangana Commercial Taxes Department portal (tgct.gov.in). Obtain your PTEC (Enrollment Certificate) and PTRC (Registration Certificate) within 30 days of hiring your first employee.

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Monthly Salary Deduction

Every month

Deduct applicable PT amount from each employee's gross salary based on the slab table. PT must be shown separately on the pay slip as a statutory deduction.

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Deposit with Treasury

By 10th monthly

Remit collected PT to the Telangana State Government via online challan on the Commercial Taxes portal. Payment is due by the 10th of the following month.

❹

File Monthly Return (Form V)

Monthly

File the Employer's Return in Form V on the Telangana CT portal. The return lists all employees, their salaries, and PT deducted for the month.

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Issue PT Certificates

Annually (April)

Provide PT payment certificates to employees for their income tax filing. PT paid is deductible under Section 16(iii) of the Income Tax Act.

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Annual Registration Renewal

By 30th June

Renew your PT registration certificate before 30th June each year. Late renewal attracts a penalty of ₹5/day.

⚠️ Penalties

PT Non-Compliance Penalties & Consequences

Avoid these costly penalties by staying compliant with Telangana PT regulations.

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Late Payment

₹50/day of delay in remitting PT to the state treasury. Interest at 1.25% per month on the unpaid amount accrues from the due date.

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Late Filing of Returns

₹50/day for late filing of Form V (monthly return). If Form V is not filed for 3 consecutive months, the department may initiate assessment proceedings.

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Non-Registration

₹5/day penalty for operating without a valid PT registration certificate. The Labour Commissioner can also seal the business premises.

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Non-Deduction from Salary

If an employer fails to deduct PT from employees, the employer becomes personally liable for the full amount plus penalties and interest.

🤖 Automation

How Our Platform Automates Professional Tax Compliance

End-to-end PT automation — from slab calculation to Form V filing — for Hyderabad employers.

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Auto Slab Calculation

PT is automatically calculated based on the employee's monthly gross salary and the applicable state slab (Telangana or AP). Handles multi-state employees with different PT rates seamlessly.

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Form V Auto-Generation

Monthly Form V (Employer's Return) is auto-generated with all employee details, salary breakdowns, and PT amounts. Ready for one-click filing on the Telangana CT portal.

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Challan Generation

PT payment challans are auto-generated with the correct treasury head and amount. Direct integration with the Telangana online payment gateway for instant remittance.

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Due Date Reminders

Automated WhatsApp and email reminders 5 days before the 10th of each month. Escalation alerts to the finance head if payment is not made by the 8th.

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Multi-State Support

For companies with offices in both Telangana and AP (or other states), the platform auto-applies the correct PT slab based on employee work location. Transfers auto-update PT state.

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Annual PT Reports

Generate annual PT summary reports per employee for income tax filing. Bulk PT certificates for all employees downloadable in one click at year-end.

❓ FAQ

Frequently Asked Questions About Professional Tax

Common PT questions from Hyderabad employers and HR teams.

Yes. Every employer in Telangana (including Hyderabad) who has salaried employees must register for Professional Tax, deduct PT from applicable employees' salaries, and remit it to the state government monthly. This applies to all types of businesses — IT companies, startups, manufacturing units, retail shops, and even sole proprietors with employees.

The Constitution of India caps Professional Tax at ₹2,500 per year. In Telangana, the highest slab is ₹200/month, which totals ₹2,400 for 12 months. To reach the ₹2,500 annual cap, the February deduction is ₹300 (₹200 regular + ₹100 adjustment). This is a standard practice followed across Telangana and is automatically handled by our payroll system.

Yes. Professional Tax paid during the financial year is allowed as a deduction under Section 16(iii) of the Income Tax Act, 1961. It reduces the employee's gross salary for computing taxable income. This applies under both the Old Tax Regime and the New Tax Regime. The PT amount appears on the employee's Form 16 and can be claimed while filing their ITR.

PTEC (Professional Tax Enrollment Certificate) is for the employer's own PT liability — every business owner/partner/director must pay PT on their own professional income. PTRC (Professional Tax Registration Certificate) is for the employer's obligation to deduct and remit PT from employees' salaries. Most Hyderabad companies need both certificates. Both are obtained through the Telangana Commercial Taxes portal.

Visit the Telangana Commercial Taxes portal (tgct.gov.in) and click on "e-Registration". Fill in your business details, PAN, TAN, and employer information. Upload required documents (Certificate of Incorporation, PAN card, address proof, list of employees). Submit the application and pay the registration fee online. The PTRC is typically issued within 3-5 working days. Our implementation team can assist with the registration process at no extra cost.

Have a specific PT question? Contact our compliance team →