Professional Tax in Tamil Nadu

Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and has to be compulsorily paid by every member of staff employed in private companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees. He can then pay the amount so collected to the appropriate government department. In this article, we look at Professional Tax in Tamil Nadu with emphasis on the process for registration, professional tax rates, and professional tax return filing.

Tamil Nadu Professional Tax Registration

Professional tax in Tamil Nadu is applicable to every company which transacts business and for persons engaged in any profession, trade, calling, or employment. The professional tax is calculated by self-assessment and is based on the half-yearly gross income of the employee or professional.

Who Is Responsible for Collecting and Paying Professional Tax in Tamil Nadu?

The Commercial Tax Department of Tamil Nadu is responsible for collecting professional taxes 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, or 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 the salaries of all employees and submit it to the State Government.
Self-employed Individuals: 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.

Revised Professional Tax in Tamil Nadu

The slab of the profession tax has been revised for Tamil Nadu in the year 2018. The following are the slabs of Professional Tax in Tamil Nadu:

Sl. No.	Six months' income (Rs.)	Old Tax (Rs)	New Tax (Rs)
1	Up to 21,000	-	-
2	21,001 – 30,000	100	135
3	30,001 – 45,000	235	315
4	45,001 – 60,000	510	690
5	60,001 – 75,000	760	1025
6	75,001 and above	1095	1250

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 paying P tax payments, 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.

Documents Required for Professional Tax Registration in TN:

The following is the list of documentation required for the registration process under the professional tax rules of Tamil Nadu:

Shops and Establishment Trade License Copy/Registration Certificate
Lease Agreement
PAN Card
Articles of Association
Memorandum of Association & Incorporation Certificate

These requirements are subject to periodic change as per directions provided by the Tamil Nadu state government.

Tamil Nadu Profession Tax Payment Procedure

Property tax should be paid within 15 days from the commencement of the half-year i.e. the month of September and March. Payment can be made to all zonal offices of the respective municipal authority within the state of Tamil Nadu by cheque or demand draft. In the case of Greater Chennai Corporation, payment of professional tax can be done online by visiting the website of GCC as explained in the following steps:

Log on to the Greater Chennai Corporation website and click on the ‘Online services’ option shown in the menu bar.

Professional Tax in Tamil Nadu - Greater Chennai Corporation Homepage

Now, select and click on the ‘Profession Tax’ tab shown among the various options. The link will redirect to the new page.

Professional Tax in Tamil Nadu - Greater Chennai CorporationServices

Log on to the new page using the user name and password. If you are not a registered user, please register yourself first by clicking on the ‘Not Registered’ option.
Now you can know the profession tax due amount using the profession tax calculator available in the Greater Chennai Corporation.

Professional Tax in Tamil Nadu - Calculator

Online payment of professional tax in Tamil Nadu can be completed using your credit card, debit card, or net banking of major banks in India.

To obtain Professional Tax Registration or Start a New Business, visit IndiaFilings.com

Exemption From Paying Professional Tax in Tamil Nadu

Following is a list of individuals, who can enjoy exemption from professional tax in Tamil Nadu,

Individuals above the age of 65 years
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.

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Frequently Asked Questions

Common questions about Professional Tax Registration in Tamil Nadu.

Professional Tax in Tamil Nadu is a tax levied on professions, trades, callings, and employment within the state. It is applicable to both salaried individuals, whose employers deduct it from their salaries, and self-employed individuals who have to pay it directly.

The Commercial Tax Department of Tamil Nadu is responsible for collecting professional taxes within the state. Employers are required to deduct professional tax from their employees' salaries and submit it to the state government. Self-employed individuals and establishments like companies, firms, and associations have to pay the tax on their own.

The professional tax slabs in Tamil Nadu were revised in 2018. The tax ranges from Rs. 135 for a half-yearly income between Rs. 21,001 and Rs. 30,000, to Rs. 1,250 for a half-yearly income above Rs. 75,001.

The due date for paying professional tax in Tamil Nadu is 1st April and 1st October for the respective half-year. Delays in payment attract a penalty of 2% per month, along with an additional 10% penalty for non-payment.

The documents required for professional tax registration in Tamil Nadu include Shops and Establishment Trade License Copy/Registration Certificate, Lease Agreement, PAN Card, Articles of Association, and Memorandum of Association & Incorporation Certificate.

Professional tax in Tamil Nadu can be paid by cheque or demand draft to the respective municipal authority within 15 days from the commencement of the half-year. For Greater Chennai Corporation, online payment is also available through their website using credit/debit cards or net banking.

Individuals above the age of 65 years, women agents under specific savings schemes, guardians of children with mental disabilities, persons with permanent physical disabilities, and military personnel are exempted from paying professional tax in Tamil Nadu.

Yes, professional tax is applicable to companies, private establishments, Hindu Undivided Families (HUFs), firms, corporations, societies, clubs, and other corporate bodies operating within Tamil Nadu.

If employers or individuals provide false or incorrect information for professional tax in Tamil Nadu, they will be liable to pay a penalty of three times the total due tax amount.

No specific information was provided in the article about obtaining professional tax registration online in Tamil Nadu. However, online services like IndiaFilings.com can assist with starting a new business or obtaining necessary registrations and licenses.