Professional Tax in Tamil Nadu

1. Professional Tax
2. Professional Tax in Tamil Nadu

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Paying taxes on time helps individuals contribute to their state’s revenue. Tamil Nadu is one of the 17 Indian states that levy professional tax on salaried employees, self-employed persons, and business professionals based on income slabs.

Tamil Nadu Professional Tax Act

In Tamil Nadu, all salaried employees in the government and private sectors are required to pay professional tax to the state government. Self-employed individuals such as doctors, engineers, lawyers, chartered accountants, and freelancers must also pay this tax. Individuals working in Tamil Nadu are required to pay professional tax based on their income slab and the applicable tax rate.

For employees, the tax is usually deducted by employers every month or half-yearly. At the same time, self-employed individuals are required to pay the professional tax directly to the state government once every six months. The professional tax paid by salaried employees can also be claimed as a deduction under the old income tax regime when filing income tax returns (ITR).

Village panchayats, town panchayats, municipalities, and city corporations collect professional tax payments. This system operates under the Tamil Nadu Panchayats, Municipalities, and Municipal Corporation Rules of 1998, which came into effect on October 1, 1998.

Professional Tax Slab Rate in Tamil Nadu

Here’s the revised Tax Slab table showing how much professional tax is deducted from salary in Tamil Nadu based on the new tax slab.

Steps to Pay Professional Tax Online in Tamil Nadu

Now that the professional tax rates and related details in Tamil Nadu have been outlined, the next step is to examine the process for making online payments.

Salaried individuals and employers can make the professional tax payment online easily by following these simple steps:

Step 1: Visit the Greater Chennai Corporation official website and go to “Online Services.” Select “Professional Tax.”

Step 2: Select “New Professional Tax Registration.”

• If already registered, log in using your username and password.
• If not registered, click “Not Registered?” and complete the registration form by entering your Name, PAN/Aadhaar, Business/Profession details, and contact information.
• Once submitted, the system generates your Professional Tax New Account Number (PTNAN) for future reference.

Step 3: Use the Professional Tax Calculator tab (optional) to automatically calculate the payable tax. Enter income details or the number of employees (for businesses) to get an estimated amount.

Step 4: Go to the Professional Tax Payment section, log in with your registered username and password, select your preferred payment mode (debit card, credit card, net banking, or UPI), and proceed.

Step 5: Complete the payment and download the receipt for future reference.

Professional Tax Due Date in Tamil Nadu

The due period is different for all states as they follow different norms, which also explains how many times professional tax is deducted from salary in a year. In Tamil Nadu, the professional tax is paid twice a year. The dates are as follows:

• First Half-Year: Payment due on or before September 30 for income earned from April to September.
• Second Half-Year: Payment due on or before March 31 for income earned from October to March.

Every individual residing in the state of Tamil Nadu who engages in a profession, trade, calling, or employment is liable to pay this professional tax to the state government. If the professional tax payment is not made on time, the Tamil Nadu state government can charge penalties or fines for late payment.

Tamil Nadu Professional Tax Late Payment Penalty

Penalty is standard for all unpaid bills and dues. If employers or individuals do not pay professional tax on time in Tamil Nadu, they must pay a 2% penalty per month on the pending amount.

If the tax is not paid at all, an extra 10% penalty is added. Additionally, if someone provides false information about their income or taxes, they may be subject to a penalty of up to three times the actual tax due.

Exemption From Professional Tax in Tamil Nadu

The following individuals do not have to pay professional tax in Tamil Nadu:

• Senior citizens above 65 years of age
• Parents of children with mental disabilities
• Individuals with a permanent physical disability
• Employees who are foreign nationals
• Women agents working under the Director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojna
• Badli workers (temporary substitute workers)
• Military personnel serving in the Army, Navy, or Air Force as per the Navy Act 1957, the Army Act 1950, and the Air Force Act 1950. This category also includes reservists working for the state or auxiliary forces.
• People whose earnings are below Rs. 21000/-

Conclusion

Paying professional tax in Tamil Nadu is mandatory for all eligible individuals and businesses in the state. Since it’s an important source of state revenue for several public welfare schemes, taxpayers must diligently pay professional tax before the due date. Timely payment helps both employers and professionals avoid hefty penalties.

Where to Pay Professional Tax in Tamil Nadu?

It can be done in the regional office to pay the professional tax slab in Tamil Nadu village panchayat, town panchayat, municipal, or corporation office. It can also be done online through the official website.

Is It Compulsory to Pay Professional Tax?

Professional tax is mandatory for other taxes if the individual meets the eligibility criteria for professional tax in Tamil Nadu.

Does Any Other State Employee Need to Pay Tax?

Employees from other states working or generating revenue in Tamil Nadu by any means must pay the professional tax if they meet the eligibility criteria.

Can an Employer Pay Professional Tax?

In most cases, the employer pays the professional tax to the government by deducting it from the employee’s salary package.

Can Self-Employed People Pay Professional Tax by Themselves?

Yes, self-employed professionals who earn more than Rs.21000/—and meet all other eligibility criteria can pay the professional themselves in the stipulated regional office or through the official website of the Tamil Nadu state government.