Professional Tax Tamil Nadu: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

Professional tax is state-imposed tax which is levied on salaries employees, professionals, and self employed individuals engaged in various professions, trades and occupations. In Tamil Nadu this serves as an essential source of revenue for the state government and is applicable to both employees and business owners based on their income. Hence, it is essential to understand professional tax rules, slab rates,payment and due dates for timely compliance and avoid penalties.

Professional Tax in Tamil Nadu

The Tamil Nadu state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Tamil Nadu must pay professional tax according to the applicable income slab and professional tax rate.

Employers deduct professional tax from employees' salaries monthly or half-yearly, and self-employed people deposit professional tax half-yearly (in six months). However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR.

Professional tax in Tamil Nadu is levied under the Tamil Nadu Panchayats, Municipalities and Municipal Corporations Rules, 1998. This rule came into effect on October 01, 1998, and is applicable to all towns, panchayats, municipalities and municipal corporations in the state. In Tamil Nadu, businesses and individuals associated with any profession, trade, calling, or employment are subject to professional tax. 

Who is liable to Pay Professional Tax Applicability in Tamil Nadu

According to Section 138C of Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998, professional tax in Tamil Nadu is applicable for the following categories:

• Self-employed individuals are required to pay professional taxes on their own.
• For salaried individuals, their employers pay the state government the professional tax of their employees out of their employees’ wages.

Additionally, private establishments owned by a business are subject to professional tax. A Hindu Undivided Family (HUF), any company, firm, corporation or other corporate body, any society, club, group of people or association are also liable to pay this tax. 

Documents Required for Professional Tax Registration

The application must be in Form 1 along with the below-mentioned docs

• Incorporation certificate, Memorandum Of Association & Articles Of Association
• PAN Card
• Lease Agreement
• Shops and Establishment Registration Certificate / Trade License Copy

Professional Tax Slab Rate in Tamil Nadu

In Tamil Nadu, the revised amount of professional tax payable is based on the average half-yearly income of an individual/entity, implemented from the Financial Year 2024-2025 for Greater Chennai Corporation (GCC).

Look at the table displaying the Tamil Nadu professional tax slabs. 

Tamil Nadu Professional Tax Exemption

The following categories of individuals are exempted from professional tax payment in Tamil Nadu: 

• A senior citizen aged above 65 years
• Parents of children with mental disability
• Individuals with a permanent physical disability
• Employees who are foreigners
• Women agents working under the Director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojna
• Badli workers
• Military personnel serve in the Air Force, Navy, and Army along with reservists working for the state or auxiliary forces.

 How to Pay  Professional Tax Online in Tamil Nadu ?

Now that you know the professional tax slab rates in Tamil Nadu and related details, let’s examine the process for online payment. 

If you are a salaried individual or employer, you can pay professional tax online. 

1. First, visit the Greater Chennai Corporation official website and click on 'Online Services’ from the available options.
2. Once redirected, click on ‘Professional tax’.
3. Log on to the new page using the username and password.
4.  Enter the number of employees, and automatically calculate the professional tax due amount.
5.  Follow the on-screen instructions to pay your professional tax. Choose your preferred payment mode like debit card, credit card or net banking and complete the transaction.

Tamil Nadu Professional Tax Payment Due Date

1. For the first half-year, i.e., from April to September, professional tax payments are due on or before 30 September.
2. For the second half year, i.e., from October to March, the professional tax payment due date is on or before 31 March.
3. If you fail to make the professional tax payment on time, the state government will impose hefty penalty charges.

Tamil Nadu Professional Tax Late Payment Penalty

Employers and individuals who fail to pay their professional tax obligation are subject to a monthly penalty of 2%. Additionally, non-payment of professional tax will draw in an extra penalty of 10%. Also, if you provide false or inaccurate information, you will be accountable for paying a penalty equal to three times the amount of taxes owed.

Final Word

Every resident in Tamil Nadu who engages in a profession, trade, calling or employment is required to pay this tax to the state government. If you are liable to pay professional tax in Tamil Nadu, make sure to pay it on time to avoid hefty penalty charges.