Updated on: Mar 14th, 2023
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10 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 get deducted from your salary every month. However, when it involves company directors, individual partners, partnerships, businesses, and self-employed directors, it will get 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:
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.
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 professional tax slab rates in Tamil Nadu and related details, let’s take a look at the process for online payment.
If you are a salaried individual or employer, you can pay professional tax online.
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:
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
Ans. 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.
Ans. 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.
Ans. 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.
Ans. 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.
Ans. 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.
Tamil Nadu is one of the 17 Indian states that levy professional tax on employed or self-employed individuals, and it is a major revenue source for the state. The tax applies to various professions and trades and is based on income levels. It can be paid online and has specific exemption criteria for certain individuals.