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

Updated on: May 23rd, 2024

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9 min read

As of now, 17 Indian states levy professional tax on employed or self-employed individuals, and Tamil Nadu is also one of them. Professional tax in Tamil Nadu is one of the state's major revenue sources. It applies not only to employees but also to individuals associated with all types of trades, professions, and employment. So, if you want to learn the basics of professional tax, you have come to the right place. 

Professional Tax in Tamil Nadu

The professional tax payable in Tamil Nadu depends on the income of professionals and salaried individuals. If you are an employee, it will be deducted from your salary every month. However, when it involves company directors, individual partners, partnerships, businesses, and self-employed directors, it will be deducted from the company's previous year's gross turnover. 

According to Article 276 of the Indian Constitution, the total amount due for professional tax must not exceed Rs 2500.

Tamil Nadu Professional Tax Rule

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. 

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 amount of professional tax payable is based on the average monthly income of an individual/entity. Take a look at the table that displays the Tamil Nadu professional tax slabs. 

Average Monthly Income

Payable Tax Amount

Up to Rs 21,000

Nil

From Rs 21,000 to Rs 30,000

Rs 130

From Rs 30,001 to Rs 45,000

Rs 315

From Rs 45,001 to Rs 60,000

Rs 690

From Rs 60,001 to Rs 75,000

Rs 1025

Above Rs 75,000

Rs 1250

Tamil Nadu Professional Tax Online Payment

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. 

  • First, visit the Greater Chennai Corporation official website and click on 'Online Services’ from the available options.
  • Once redirected, click on ‘Professional tax’.
  • Log on to the new page using the username and password.
  • Enter the number of employees, and automatically calculate the professional tax due amount.
  • 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

For each half-year, professional tax payments are due on April 01 and October 01. 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.

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.

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.

Frequently Asked Questions

Who Collects the Professional Tax in Tamil Nadu?

The Commercial Tax Department of Tamil Nadu is the authority that collects the tax in the state.

Is professional tax compulsory in Tamil Nadu?

Yes, if you are a salaried or self-employed individual who is earning a stable income, you are liable to pay professional tax in Tamil Nadu under The Tamil Nadu Municipal Laws (Second Amendment) Act, 1998. 

How much is a professional tax in Tamil Nadu?

The professional tax payable depends on your income. For instance, if you are earning Rs 21,000 to Rs 30,000, you need to pay Rs 130 on a half-yearly basis. Simultaneously, if your income is below Rs 21,000, you are not liable to pay taxes. 

Who is eligible for professional tax in Tamil Nadu?

Individuals earning more than Rs 20,000 are liable to pay professional tax. If you are a salaried or self-employed individual in Tamil Nadu, you are eligible to pay professional tax in Tamil Nadu. Additionally, corporate bodies, clubs, societies, HUFs, etc., are also eligible.

Who is exempt from professional tax in Tamil Nadu?

Senior citizens, Badli workers, women agents working under government schemes, individuals with 40% disability, etc., are not required to pay professional tax in Tamil Nadu.

How to pay professional tax in Tamil Nadu?

If you are a salaried individual, your employer will deduct this tax from your monthly salary. However, for self-employed individuals, you can pay it online by visiting the official website of Greater Chennai Corporation - www.chennaicorporation.gov.in.

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Quick Summary

Professional tax is levied in Tamil Nadu on employed or self-employed persons and it is a significant revenue source for the state. It applies to various professionals, with deductions made monthly. Businesses are also included, and the tax amount is based on income. The tax slabs range from nil for incomes up to Rs 21,000 to Rs 1,250 for incomes over Rs 75,000. Online payment options are available, with penalties for late payment.

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