City Update

Profession Tax

Profession Tax

What Is Professional Tax in Tamil Nadu?:

1.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.

2.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.

3. The amount of P tax in Tamil Nadu depends on the slab rate, which changes every year.

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

            1. Salaried Individual: Employers deduct P tax in Tamil Nadu from salaries of all employees and submit it to the State Government.

            2. Self-employed Individual: Self-employed individuals are liable to submit P tax in Tamil Nadu on their own.

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.

When Is the Due Date for Professional Tax Payment in Tamil Nadu?:

1.The payment due date of professional tax is 1st April and 1st October for the respective half-year.

2.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%.

3.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?

1.Individuals above the age of 65 years.

2.Women agents who are working exclusively under the Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings.

3.Guardians or parents of children with mental disability.

4.People with a permanent physical disability, including blindness.

5.Badli workers of the Textile industry.

6.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.