A direct tax imposed by the state government within the state is known as the professional tax in Tamil Nadu. The slab rate of the Professional Tax would depend on your income. Read this article to gain all the information regarding the same.
Nearly every single state in India collects professional tax from salaried workers, and Tamil Nadu is one of them. The State Government of Tamil Nadu charges a professional tax, which is also one of the State’s key sources of revenue. In this article, we are going to learn about Professional Tax in Tamil Nadu. If you are willing to learn more about the basics of professional tax, then you have come to the right place.
How Much is the Professional Tax in Tamil Nadu?
A direct tax imposed by the Tamil Nadu government within the State is known as the professional tax. People who get a salary or earn an income under the professional tax structure are subject to this tax, which includes professionals, including lawyers, doctors, and chartered accountants. It is mandatory to pay Professional Tax in Tamil Nadu.
The Tamil Nadu Town Panchayats, Municipalities and Municipal Corporations (Collection of Arrears of Tax on Profession, Trades, Calling and Employment’s) Rules, 1998, regulate the collection of Professional Tax in Tamil Nadu. The regulations apply to every Town Panchayat, Municipal, and Municipalities Corporations in the State.
Professional Tax in Tamil Nadu Slab Rate
In India, the state government collects professional tax. Any employed professional receiving a salary in India must pay professional tax. The amount of professional tax that the state government levies differs by state. For the government, professional tax is a source of revenue. Anyone who works in a trade or profession is required to pay this tax.
Refer to the below-mentioned tax slabs to learn about the Tamil Nadu professional tax:
Average Monthly Salary(Half-yearly/₹) |
Tax Amount that is Payable(Half-yearly/₹) |
| Salary up to ₹21,000 | Nil |
| Salary from ₹21,001 to ₹30,000 | ₹135 |
| Salary from ₹30,001 to ₹45,000 | ₹315 |
| Salary from ₹45,001 to ₹60,000 | ₹690 |
| Salary from ₹60,001 to ₹75,000 | ₹1025 |
| Salary above ₹75,001 and above | ₹1250 |
Who Is Responsible for Collecting and Paying Professional Tax in Tamil Nadu?
The Commercial Tax Department of Tamil Nadu is in charge of collecting professional tax within the state.
Tamil Nadu Municipal Laws (Second Amendment) Act, 1998 mandates that everyone engaged in a profession, trade, job, or calling within the Greater Chennai municipal limits needs to pay a professional tax every six months. This tax is specifically applicable for the following individuals:
(i) A salaried person: In Tamil Nadu, employers deduct Professional tax from the salary of all workers and submit it over to the state government.
(ii) A self- employed person: In Tamil Nadu, a self- employed person is required to submit their own Professional tax by themselves.
(iii) Moreover, firms’ private establishments are subject to the Professional Tax in Tamil Nadu. The list also covers Hindu Undivided Family (HUF), firms, companies, corporations, or other corporate bodies, as well as any societies, clubs, groups of people, or associations.
How Can You Register for Professional Tax in Tamil Nadu?
After hiring employees for their firm, the employer must submit an application for a registration certificate to the Tamil Nadu tax department within 30 days of hiring. If a person has multiple businesses, they need to file separate applications for each one.
How Can You Pay Professional Tax in Tamil Nadu?
Employers and individuals in Tamil Nadu can pay professional tax at any of the zonal offices of the relevant municipal authorities. They have the option of paying the same amount via demand draft or cheque.
Professional tax payments can be made online at the Greater Chennai Corporation by employers and individuals.
You can follow the following 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 navigation bar
- Step 3 – A new webpage will open after that. Then select ‘Professional tax payment’
- Step 4 – Follow the on-screen instructions to pay your professional taxes with a debit card, credit card, or net banking.
When is the Due Date to Make the Professional Tax Payment in Tamil Nadu?
The due date for payment of Professional Tax in Tamil Nadu is 1st April and 1st October for the respective half-year.
Employers and individuals who fail to pay Professional tax within the due date are subject to a 2% monthly penalty. Moreover, 10% more will be charged as a penalty for non-payment of Professional tax. In addition, employers and individuals who give fraudulent or inaccurate information are subject to a penalty of three times the amount of the total tax overdue.
Who is Exempted from Paying Professional Tax in Tamil Nadu?
There are several groups of people who are exempt from paying Professional Tax in Tamil Nadu. Here is a list of some of them:
(i) Any foreign employee is exempt from paying the Professional Tax.
(ii) Any person who is above the age of 65 years.
(iii) Any temporary worker (popularly known as Badli workers) who is working in the textile industry.
(iv) Parents or guardians of any child or children with a permanent disability or mental disability.
(v) Any woman who is exclusively engaged as an agent under the Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings.
(vi) Any person suffering from a permanent physical disability, including blindness.
(vii) Any member of the forces as stated in the Air Force Act, 1950, the Army Act, 1950 and the Navy Act, 1957, including members of auxiliary forces or reservists, serving in the respective State.
FAQs
What is the professional tax rate in Tamilnadu?
The professional tax rate in Tamilnadu is a fixed amount based on income slabs. There is no percentage-based calculation.
Who is eligible for professional tax in Tamilnadu?
Any individual earning a monthly income of ₹21,000 or more is liable to pay professional tax Tamilnadu.
How do I calculate my professional tax in Tamilnadu?
To determine your professional tax tamilnadu liability, refer to the following income slabs and corresponding tax amounts: Monthly income: ₹21,001 - ₹30,000 - PT: ₹130 Monthly income: ₹30,001 - ₹45,000 - PT: ₹315 Monthly income: ₹45,001 - 60,000 - PT: 690 Monthly income: ₹60,001 - ₹75,000 - PT: ₹1025 Monthly income: ₹75,001 and above - PT: ₹2000
What is the tax of professional tax?
Professional tax is a direct tax levied by the state government on the income of individuals engaged in any trade, calling, profession, or employment.
What is the monthly PT slab in Tamilnadu?
The monthly PT slab in Tamilnadu is as follows: Monthly income: ₹21,001 - ₹30,000 Monthly income: ₹30,001 - ₹45,000 Monthly income: ₹45,001 - ₹60,000 Monthly income: ₹60,001 - ₹75,000 Monthly income: ₹75,001 and above
Conclusion
As per the Constitution of India, ‘a certain amount shall be levied and collected as Professional Tax in Tamil Nadu, trades, callings and employments in accordance with the provision of this act. Every Indian resident involved in a profession, trade, calling or engagement is liable to pay professional tax to the state government of the state that they reside in.’
If you reside in Tamil Nadu and are looking for a legal entity to help you pay your Professional Tax, Vakilsearch is your answer. We have some of the best attorneys who specialise in dealing with tax procedures. Make your tax filing and submission seamless and worry-free with the assistance of our expert legal team.
