Profession Tax (PT) is a state-level tax levied on individuals engaged in business, trade, employment, or any profession. The Telangana State Tax on Professions, Trades, Callings, and Employment Act governs the collection and compliance of profession tax in Hyderabad and across Telangana.

At VPS & Associates, Hyderabad, we assist businesses and professionals in obtaining PT registration, amending existing registrations, and filing monthly and annual PT returns. Our team specializes in PT compliance and ensures seamless registration and filing for businesses.

Frequently Asked Questions (FAQs) on Profession Tax

Who Needs to Register Under the PT Act?

Profession Tax applies to every individual or entity engaged in any profession, trade, or employment, including:

✅ Salaried Employees (Public & Private Sector)
✅ Self-Employed Professionals (Doctors, Lawyers, CAs, Consultants, etc.)
✅ Business Owners, Firms & Companies
✅ Traders & Freelancers

As per the PT schedule, businesses and professionals must obtain PT registration and remit the tax within the due date.

Should a Private Limited Company Get PT Registration?

Yes. Every business entity operating in Telangana is required to obtain PT registration. The following entities must comply with PT regulations:

✔ Hindu Undivided Family (HUF)
✔ Partnership Firms
✔ Public & Private Limited Companies
✔ Societies & Associations
✔ Clubs & Trusts

How Much Profession Tax Do Employees Need to Pay?

Profession Tax is deducted based on monthly salary slabs:

Monthly Salary (₹)	Profession Tax (₹/Month)
Up to ₹15,000	₹0 (Exempt)
₹15,001 to ₹20,000	₹150 Per Month
Above ₹20,000	₹200 Per Month

 

✔ Employers must deduct PT from employee salaries and remit it before the 10th of the following month.

When Should the Annual Return Be Filed?

✔ All PT-registered employers must file an annual return within 60 days from the end of the financial year (i.e., by June 30).
✔ The return must detail salaries paid and PT deducted during the previous year.

Who is Exempt from Profession Tax?

Certain individuals are exempt from paying profession tax, including:

✅ Senior Citizens (65+ years)
✅ Salaried or wage-earning deaf & mute individuals
✅ Physically handicapped persons (40% disability & above, with a certified government medical report)

Other Business Registrations Required in Hyderabad

In addition to Profession Tax, businesses in Hyderabad may need:

✔ GST Registration
✔ Shops & Establishments Registration (Telangana Shops Act)
✔ MSME / Udyam Registration
✔ Employee Provident Fund (EPF) Registration
✔ Employee State Insurance (ESI) Registration
✔ STPI / Non-STPI Registration
✔ Import Export Code (IEC) Registration
✔ Trade License from GHMC (Greater Hyderabad Municipal Corporation)