Legal Guide

Know the New Professional tax slab in Tamil Nadu

by Bhavya Choudhary · 3 min read

professional tax slab in tamilnadu

The Profession Tax is a direct tax levied by the state government on the income of a variety of individuals following different professions. 

In the parts that follow, we will examine the essential characteristics of Professional Tax in Tamil Nadu and the Professional tax slab in Tamil Nadu.

What is the Objective of the Profession Tax slab in Tamil Nadu?

  • The government levies taxes in order to produce income for infrastructure development, government employee salaries (such as police officers and firemen), national defense, etc. 
  • In addition, the government utilizes these monies for initiatives of public welfare, such as child development and women’s welfare. 
  • There are several forms of taxes levied on residents, including income tax, capital gains tax, corporation tax, and customs duty, among others. 
  • The Professional tax slab in Tamil Nadu is a prevalent direct tax levied by state governments.
  • The Professional tax slab in Tamil Nadu is proportional to the gross income of professionals and salaried individuals. It is withdrawn monthly from the paychecks of all workers. 
  • When it concerns a firm, its directors, partnerships, individual partners, self-employed individuals, and companies, it is deducted from the company’s previous year’s gross revenue. 
  • In some instances, the tax payment is predetermined and must be paid regardless of the revenue. In India, the professional tax bracket differs per state.

Professional tax slab in Tamil Nadu for New Companies

If you are contemplating beginning your own business, there are certain professional tax standards and regulations you must adhere to. These are the essential guidelines:

  • A request for registration must be submitted to the assessee’s state tax agency within 30 days after hiring personnel.
  • Employees should be required to register within 30 days of employment.
  • The employee’s compensation will be reduced by the professional tax amount.
  • In the event of 20 or more workers, the payment must be paid within 15 days after the end of the month.
  • If there are less than 20 workers, quarterly payments should be issued.
  • If the assessee has many workplaces, applications must be addressed to each body with jurisdiction over the assessee.
  • In Tamil Nadu, the deadline for submitting professional tax returns is the last day of September and the last day of March, or twice a year.

Who is Exempt from the Professional tax slab in Tamil Nadu?

The following is a list of professions exempt from the Professional tax slab in Tamil Nadu:

  • Anyone older than 65 years 
  • Guardians or parents of mentally handicapped children
  • Women agents are only working with the Director of Small Savings or the Mahila Pradhan Kshetriya Bachat Yojana.
  • Individuals with a permanent physical impairment, including blindness
  • Textile sector Badli employees
  • Military personnel as defined by the Air Force Act 1950, the Navy Act 1957, and the Army Act 1950, as well as members of the auxiliary forces or state-employed reservists

Professional Tax slab in Tamil Nadu

  • Tamil Nadu is one of the very few Indian states that impose a professional tax on its residents. Any individual who receives a salary or other kind of income would be subject to the professional tax system. 
  • Visit the official government website for a thorough knowledge of who is subject to the professional tax and how it is imposed. 
  • This tax is obligatory, however, you may claim a deduction on your income tax for the amount paid as professional tax. 
  • Article 276 of the Indian Constitution stipulates that the total profession tax due cannot exceed Rs. 2500. The professional tax registration procedure in Tamil Nadu may be conducted online.

New Professional tax slab in Tamil Nadu

In 2018, Tamil Nadu altered its Professional tax slab in Tamil Nadu. Now, it includes a new tax on jobs and vocations in addition to professions and crafts. The following categories’ Profession Tax will be assessed on a semiannual basis:

  • Companies
  • Salary individuals (State & Central Government)
  • Private Establishments
  • Individuals

According to section 138 C of the Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998, “every person engaged in any trade, profession, employment, or vocation within the city boundaries of the Corporation of Greater Chennai is required to pay the half-yearly Professional Tax”. It will be computed based on the gross revenue stated every six months as follows:

New Professional Tax Slab in Tamil Nadu

Required Documents for Professional Tax Registration

The list of documents necessary for registration under the Tamil Nadu profession tax laws is as follows:

  • Copy of the Business License or Registration Certificate for Stores and Businesses
  • Lease Agreement
  • PAN Card
  • Articles of Incorporation
  • Memorandum of Association & Certificate of Incorporation

These standards are subject to periodic modification in accordance with Tamil Nadu state government directives. One who has entered into a work contract or employment contract and if he receives salary within the Professional tax slab in Tamil Nadu, then he is required to pay professional tax. One may consult a lawyer online to get the work contract or employment contract drafted.

Professional tax slab in Tamil Nadu

The property tax must be paid within 15 days of the beginning of each half-year, i.e. September and March.

Cheques and demand drafts are acceptable forms of payment at all zonal offices of the appropriate municipal body within the state of Tamil Nadu.

In the case of Greater Chennai Corporation, payment of the profession tax may be made online by visiting the GCC’s website as shown below:

  • Step 1: Visit the Greater Chennai Corporation website and choose “Online Payment” from the menu on the left.
  • Step 2: Select and click on the ‘Profession Tax’ tab from the available choices.
  • Step 3: Enter your username and password to access the new page. If you are not a registered user, please register by selecting the ‘Not Registered’ link.
  • Step 4 – You may now determine the amount of profession tax payable by utilizing the profession tax number shown on previous years’ profession tax payment receipts. Online payment of professional tax in Tamil Nadu is possible by credit card, debit card, or net banking at India’s main banks.

Conclusion 

Unlike Income Tax, Professional Tax in India is a direct tax handled by the states and not the central government. Since Union territories are under the Central Government’s authority, they are free from the professional tax in India.

None of the nine union regions are thus compelled to pay. Moreover, the bulk of these establishments are rather small and contribute little to the economy; hence, they are exempt from this tax. To know more about Professional Tax Slab in Tamil Nadu, consult a lawyer online now.

Payment of Professional tax is necessary if you reside in a state where professional tax is levied. To know more about Professional Tax Slab in Tamil Nadu, consult a tax lawyer now.

Bhavya Choudhary

Written by

Bhavya Choudhary

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