Telangana charges PT monthly: nil up to ₹15,000, ₹150 for ₹15,001 to ₹20,000 and ₹200 above ₹20,000 a month, with no February top-up. The employer deducts it, registers in Form I (certificate in Form 1A, one per assessing authority) and files returns in Form V. Persons with 40% or more disability are exempt. Late payment carries interest of ₹2 per ₹100 a month.
Professional tax slabs in Telangana
Professional tax in Telangana is levied under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987. It is charged on monthly salary and deducted every month. The rates below are the First Schedule "as amended up to date" on tgct.gov.in; the GO list shows no rate change after 2013, as published on the official source listed at the end of this page (checked 21 October 2026). Article 276 of the Constitution caps professional tax at ₹2,500 a year per person.
| Monthly salary | Professional tax a month |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 |
| Above ₹20,000 | ₹200 |
No higher February amount applies, so the maximum is ₹2,400 a year.
Who deducts it and registration
Section 5 makes the employer liable to deduct and pay. Under section 6 and Rule 3 the employer applies for a certificate of registration in Form I and receives it in Form 1A, with a separate registration for each assessing authority's jurisdiction. Others obtain a certificate of enrolment (Form II). For government drawing and disbursing officers, February pay cannot be drawn until the full year's tax is cleared (Rule 15).
The employee does not pay separately when the employer deducts: the deduction on the payslip is the employee's tax, and the employer is liable if it fails to deduct or pay.
Exemptions
- Physically handicapped persons with 40% or more disability (entry 39 of the Schedule; GO 1063 of 2007)
Due dates and payment
- Returns are filed in Form V by the dates prescribed (section 7, Rule 12). The official Rules page does not print the employer's date, so confirm it on tgct.gov.in when you register.
Keep the challan or payment receipt for each period and reconcile it with the payroll register: a mismatch between what payslips show and what was paid is the most common finding when the department checks an employer.
Penalties and interest
From the Act and Rules as published on the official site:
- Late return: ₹5 to ₹100 a day (section 7).
- Failure to register: ₹10 to ₹20 a day for an employer (section 6).
- Non-payment after a demand notice: 25% to 50% of the tax (section 12).
- Interest: ₹2 for every ₹100 for each month or part of a month (Rule 24).
Worked example: Telangana
A Hyderabad restaurant pays a helper ₹14,000, a cook ₹18,500 and a manager ₹32,000 a month.
| Employee | Monthly salary | PT a month | PT a year |
|---|---|---|---|
| Helper | ₹14,000 | Nil | Nil |
| Cook | ₹18,500 | ₹150 | ₹1,800 |
| Manager | ₹32,000 | ₹200 | ₹2,400 |
If ₹350 of the year's tax is paid three months late, interest under Rule 24 is ₹2 per ₹100 per month: ₹7 × 3 = ₹21.
Getting PT right on every payslip
- Use the gross salary for the month to pick the slab, and recheck after every raise or arrears payment.
- Register in each state where you employ people: PT follows the place of work, not the head office.
- Show PT as a separate deduction on the payslip, next to PF, ESI and TDS.
- Under the new income-tax regime PT is not deductible from salary income; under the old regime it is.
Check take-home pay with the salary calculator, the employer and employee shares with the PF calculator and ESI calculator, and show every deduction clearly using the salary slip format. FundRaksha HR calculates professional tax with PF, ESI and TDS on each payroll run and produces the PT, PF ECR and ESI files, so the deduction on the payslip and the amount paid agree. Compare all states on the professional tax slabs by state page.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.