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

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. 

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.