Professional Tax

Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987

Applicability

Every person (including a Hindu undivided family, firm, company or other corporate body, any society, club or association including every branch of such entity) engaged in the State in any profession, trade, calling or employment (of government or other employer) specified in the First Schedule, shall be liable to pay professional tax at the rate specified.

The tax payable under this Act, by any person earning a salary or wage, shall be deducted by his employer form the salary or wage payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons.

The rates of tax applicable on salaries on monthly salaries:

Salary and wage earners, such persons whose monthly salaries or wages in Rs :  

Tax (PM)  

Upto Rs. 15,000/-

Nil

Range from Rs. 15,001/- to Rs. 20,000/-

150/-

Range above Rs. 20,000/-

200/-

New Professional Tax Rates effective from 04-02-2013

Exemption

However Minor Children and Housewives who are partners in a firm, Companies registered under Indian Companies Act with NIL turnover, Sleeping partners and honorary Directors who are not drawing any salary of honorarium are exempt from payment of Profession Tax.

Further the following types of self employed persons are exempt from payment of Profession Tax:

Agriculturist, Goldsmith, Blacksmith, Pot-maker, Cobbler, Tailor, Washerman, Barber, Professional persons engaged in performing religious duties in various religions, Carpenter, Book-binder, Basket-maker, Totally Crippled person.

Timelines

Every assessee required to be registered under the act shall with in thirty days of commencement of the covered profession, trade, calling or employment.

Every assessee registered under this Act, shall submit a monthly return in Form V along with the tax due by 10th day of the following month for which the return is being filed.

To know more about labour laws.