The plane, belonged to Sepahan Airlines, crashed when its engine shut down shortly after taking off from Tehran Mehrabad International Airport at 9:45 hours local time (0515 GMT).
The aircraft was heading to the eastern city of Tabas in South Khorassan Province.
According to emergency medical team, the wounded were transferred to nearby hospitals immediately after the tragic incident.
A spokesman for Iran Red Crescent Society told IRNA that an investigation team was dispatched to the crash site to find out the cause of the incident.
Hossein Derakhshan added that the aircraft crashed in a treed area near Azadi township, south of the Mehrabad Airport.
An informed source at the Civil Aviation Organization also said 48 people were onboard the plane.
Meanwhile, a Fire Department spokesman told IRNA that bodies of the victims have been transferred to the Coronerˈs Office.