Professional Tax in Tamil Nadu: Everything Explained
Almost every State of India collects professional tax from earning individuals, and Tamil Nadu is one such State. The State Government of Tamil Nadu levies a professional tax, which is also one of the major sources of revenue within the State.
Individuals willing to know about the basics of professional tax in Tamil Nadu can find this piece very helpful. So, without much ado, start reading!
What Is Professional Tax in Tamil Nadu?
Professional tax is a direct tax levied by the Tamil Nadu Government within the State. This tax is applicable to individuals who receive salary or earn income under the professional tax structure, thus including professionals such as lawyers, doctors, chartered accountants. The payment of professional tax in TN is mandatory.
Professional tax in Tamil Nadu is levied under the Tamil Nadu Town Panchayats, Municipalities and Municipal Corporations (Collection of Arrears of Tax on Profession, Trades, Calling and Employment's) Rules, 1998. The rules are applicable to all Town Panchayats, Municipalities and Municipal Corporations in the State.
The amount of P tax in Tamil Nadu depends on the slab rate, which changes every year.
| Average Monthly Income (Half-yearly/ ₹) | Payable Tax Amount (Half-yearly/ ₹) |
|---|---|
| Income up to ₹ 21,000 | Nil |
| Income from ₹ 21,000 to ₹ 30,000 | ₹ 130 |
| Income from ₹ 30,001 to ₹ 45,000 | ₹ 315 |
| Income from ₹ 45,001 to ₹ 60,000 | ₹ 690 |
| Income from ₹ 60,001 to ₹ 75,000 | ₹ 1025 |
| Income above ₹ 75,000 | ₹ 1250 |
Who Is Responsible for Collecting and Paying Professional Tax in Tamil Nadu?
The Commercial Tax Department of Tamil Nadu is responsible for collecting professional tax within the State.
According to the Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998, Section 138 C, individuals involved in any profession, trade, employment, calling within the city boundaries of Greater Chennai must pay half-yearly professional tax. To be precise, this tax is applicable for
- Salaried Individual: Employers deduct P tax in Tamil Nadu from salaries of all employees and submit it to the State Government.
- Self-employed Individual: Self-employed individuals are liable to submit P tax in Tamil Nadu on their own.
Additionally, the professional tax is applicable for companies' private establishments. Further, the list includes Hindu Undivided Family (HUF), firm, company, corporation or other corporate body, any society, club, a body of persons or association.
After knowing the professional tax slab rates in Tamil Nadu and other important details, the next question comes where and how to make payment in the State. So, let's dig out the process!
How to Pay Professional Tax in Tamil Nadu?
Employers/individuals can pay professional tax in TN to all zonal offices of respective municipal authorities in Tamil Nadu. They can pay the same by cheque or demand draft.
Employers/individuals willing to pay P tax at the Greater Chennai Corporation can do so online.
Here is a step-by-step guide for making online payment of professional tax in Chennai:
- Step 1 - Visit the official website of Greater Chennai Corporation.
- Step 2 - Click on 'Online Payment' from the available options.
- Step 3 - A new webpage will open. Click on 'Professional tax payment'. Individuals can search by Acknowledgement no.
- Step 4 - Follow the instructions and complete professional tax payment using a debit card, card, or net banking.
When Is the Due Date for Professional Tax Payment in Tamil Nadu?
The payment due date of professional tax is 1st April and 1st October for the respective half-year.
In case employers/individuals delay to pay P tax payment, they have to pay a penalty of 2% per month. Non-payment of P tax will attract an additional penalty of 10%. If employers or individuals provide false or incorrect information, they will be accountable for paying a penalty of 3 times of total due tax amount.
Who Are Exempt From Paying Professional Tax in Tamil Nadu?
Following is a list of individuals, who can enjoy exemption from professional tax in Tamil Nadu,
- Women agents who are working exclusively under the Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings.
- Guardians or parents of children with mental disability
- People with a permanent physical disability, including blindness
- Badli workers of the Textile industry
- Military personnel of the forces as per the Navy Act 1957, the Army Act 1950 and the Air Force Act 1950, along with reservists working for the State or members of the auxiliary forces.
Follow the above-mentioned instructions for making seamless payment of professional tax in Tamil Nadu and pay it timely to avoid penalty charges.
Frequently Asked Questions
Is there any penalty for late obtaining of enrollment certificate in Tamil Nadu?
Yes, employers have to pay a penalty of ₹ 2 per day for late obtaining of enrolment certificate in Tamil Nadu.
What are the important documents for professional tax registration in Tamil Nadu?
The documents required for professional tax registration in Tamil Nadu are Incorporation certificate, Memorandum of Articles and Association of Articles (in case of a limited company), address proof of the office in Chennai, a certificate from the Commercial Tax Department of Chennai, PAN Card, bank details, list of employees with their salaries.