{"id":18576,"date":"2020-10-29T12:34:42","date_gmt":"2020-10-29T07:04:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=18576"},"modified":"2020-10-29T14:58:34","modified_gmt":"2020-10-29T09:28:34","slug":"understand-the-concept-of-professional-tax-in-tamil-nadu","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/","title":{"rendered":"Let\u2019s Understand the Concept of Professional Tax in Tamil Nadu"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Professional Tax is\nthe state government direct tax imposed on an income earned by a wide range of\npeople pursuing different professions. The tax gets deducted from salaries of\nall employees on a monthly basis.<\/p>\n\n\n\n<p>When this involves\nany company, directors of company, partnerships, individual partners, or any\nself-employed businesses, then it will be deducted from a gross turnover of the\ncompany as recorded in a previous financial year. In certain cases, the disbursement\nof tax is preset; which means that it is to be paid irrespective of what the\nturnover is. The slab for professional tax in Tamil Nadu varies from other\nstates across India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Professional_Tax_in_Tamil_Nadu\" >Professional Tax in Tamil Nadu<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Revised_Professional_Tax_in_Tamil_Nadu\" >Revised Professional Tax in Tamil\nNadu<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Exemption_from_Professional_Tax_in_Tamil_Nadu\" >Exemption from Professional Tax in\nTamil Nadu<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Professional_Tax_in_Tamil_Nadu_for_New_Businesses\" >Professional Tax in Tamil Nadu for\nNew Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Tamil_Nadu_Profession_Tax_Payment_Procedure\" >Tamil Nadu Profession Tax Payment\nProcedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Documents_Required_for_Professional_Tax_Registration_in_Tamil_Nadu\" >Documents Required for Professional\nTax Registration in Tamil Nadu<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/understand-the-concept-of-professional-tax-in-tamil-nadu\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Professional_Tax_in_Tamil_Nadu\"><\/span>Professional Tax in Tamil Nadu<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tamil Nadu is one of the states in India which actually levies professional tax on the citizens. Anyone who receives a salary or any sort of income from profession will come under the professional tax structure. The tax is compulsory, and one can also claim the income tax deduction on the amount paid as the profession tax.&nbsp; <strong><em>Article 276 of Constitution of India<\/em><\/strong> states that a total amount payable as profession tax must not exceed Rs. 2500. Moreover, the registration process for professional tax in <em><strong>Tamil Nadu<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Tamil_Nadu\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> can be completed online.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mandatory-documents-required-for-professional-tax-registration-in-india\/\">Mandatory Documents Required for Professional Tax Registration in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revised_Professional_Tax_in_Tamil_Nadu\"><\/span>Revised Professional Tax in Tamil\nNadu<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the recent changes, the slab of the professional tax in Tamil Nadu has been revised. Now, this involves a new provision of tax on employment as well as on professions and trades.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"633\" height=\"332\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-108.png\" alt=\"Revised Professional Tax in Tamil Nadu\" class=\"wp-image-18577\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-108.png 633w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-108-300x157.png 300w\" sizes=\"(max-width: 633px) 100vw, 633px\" \/><\/figure><\/div>\n\n\n\n<p>According to the Tamil Nadu Municipal Laws 2<sup>nd<\/sup> Amendment Act 1998, <strong>section 138 C<\/strong> states that if any individual occupied in any profession, trade, employment and calling in the city limits of the Corporation of Greater Chennai, then must have to pay the half-yearly Professional Tax. It must be calculated based on a gross income that is as follows:<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Average Monthly Income (For Half-yearly)<\/strong>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>Revised Profession Tax (For Half-yearly)<\/strong>\n  <\/td><td>\n  <strong>Old Profession Tax (For Half-yearly)<\/strong>\n  <\/td><\/tr><tr><td>\n  Up to\n  21,000\n  <\/td><td>\n  NIL\n  <\/td><td>\n  NIL\n  <\/td><\/tr><tr><td>\n  21,000\n  to 30,000\n  <\/td><td>\n  Rs. 135\n  <\/td><td>\n  Rs. 100\n  <\/td><\/tr><tr><td>\n  30,000\n  to 45,000\n  <\/td><td>\n  Rs. 315\n  <\/td><td>\n  Rs. 235\n  <\/td><\/tr><tr><td>\n  45,000\n  to 60,000\n  <\/td><td>\n  Rs. 690\n  <\/td><td>\n  Rs. 510\n  <\/td><\/tr><tr><td>\n  60,000\n  to 75,000\n  <\/td><td>\n  Rs. 1025\n  <\/td><td>\n  Rs. 760\n  <\/td><\/tr><tr><td>\n  75,000\n  and above\n  <\/td><td>\n  Rs. 1250\n  <\/td><td>\n  Rs. 1095\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemption_from_Professional_Tax_in_Tamil_Nadu\"><\/span>Exemption from Professional Tax in\nTamil Nadu<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following is the list of individuals who can be exempted from the profession tax in Tamil Nadu:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Any person\nwho has crossed the age of 65 years<\/li><li>Guardians\nor&nbsp; parents with any mental disability<\/li><li>Women\nagents who involved exclusively under Director of Small Savings or Mahila\nPradhan Kshetriya Bachat Yojana<\/li><li>People\nwho have the permanent physical disability, e.g. blindness<\/li><li>Badli\nworkers in Textile industry<\/li><li>Military\npersonnel of the forces as delineated under the Army Act 1950, the Air Force\nAct 1950, and the Navy Act 1957, along with the members of the auxiliary forces\nor reservists working for a state. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Professional_Tax_in_Tamil_Nadu_for_New_Businesses\"><\/span>Professional Tax in Tamil Nadu for\nNew Businesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>There are some key rules and regulations one has to follow pertaining to professional tax in Tamil Nadu. The key rules are as follows:<\/strong><\/em><\/p>\n\n\n\n<ul><li>Registration\napplication must be made to the assessee\u2019s state tax department within the time\nperiod of 30 days<\/li><li>Mandatory\nRegistration of employees within the time period of 30 days of employment has\nto be done<\/li><li>The\nprofessional tax amount has to be deducted from the salary of the employee<\/li><li>In the\ncase there are 20-plus employees, the payment must be made within the period of\n15 days from a month<\/li><li>If\nthere are less than 20 employees, payment must be made every quarter of the\nyear<\/li><li>In case\nthe assessee has multiple places of work, then an application must be sent to\neach authority under the respective jurisdiction<\/li><li>The\nlast date for filing of returns for profession tax in Tamil Nadu is the last\nday of September and the last day of March (twice a year).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tamil_Nadu_Profession_Tax_Payment_Procedure\"><\/span>Tamil Nadu Profession Tax Payment\nProcedure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Professional tax\nmust be paid from the commencement of half-year that is from the month of September\nand March. Payment must make to all zonal offices of a respective municipal\nauthority within the state of Tamil Nadu by demand draft or cheque. In the case\nof Greater Chennai Corporation, payment of profession tax must be done online\nby visiting the website of GCC as explained in the steps as below:-<\/p>\n\n\n\n<ul><li><strong>Step-1<\/strong> Log on to Greater Chennai Corporation\nwebsite and then click on \u2018Online Payment\u2019 option shown on the left side.<\/li><li><strong>Step-2<\/strong> Then select and click on to the \u2018Profession\nTax tab\u2019 shown among various options.<\/li><li><strong>Step-3<\/strong> Now, log on to a new page using the user\nname and password. In case you are not the registered user, then register\nyourself first by clicking on the option \u2018Not Registered\u2019.<\/li><li><strong><em>Step-4<\/em><\/strong> Now know about your profession tax due amount using the profession tax\nnumber as mentioned on the profession tax payment receipt of any earlier year.<\/li><li><strong><em>Step-5<\/em><\/strong> Thereafter an Online payment for profession tax in Tamil Nadu can be\nmade by using credit card, debit card or net banking of major banks in India.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Professional_Tax_Registration_in_Tamil_Nadu\"><\/span>Documents Required for Professional\nTax Registration in Tamil Nadu<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The list of documentation required for the Professional Tax Registration under profession tax rules are as follows:-<\/strong><\/em><\/p>\n\n\n\n<ul><li><a href=\"https:\/\/corpbiz.io\/shop-establishment-license\"><strong>Shops and Establishment Registration<\/strong><\/a> Certificate\/<a href=\"https:\/\/corpbiz.io\/trade-license\"><strong>Trade License<\/strong><\/a> Copy<\/li><li>PAN Card<\/li><li>Lease Agreement<\/li><li>Memorandum of Association<\/li><li>Articles of Association<\/li><li>Incorporation Certificate<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many different types of taxes which are imposed on the citizens such as income tax, corporate tax, capital gains tax, customs duty, etc. The common direct tax imposed by the state government is the professional tax. We at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> happily offer the services of <a href=\"https:\/\/corpbiz.io\/professional-tax-registration\"><strong>Professional Tax Registration<\/strong><\/a>. Feel free to contact us as we are there for you help and guidance. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/guide-on-professional-tax-registration-process\/\">Guide on Professional Tax Registration Process<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional Tax is the state government direct tax imposed on an income earned by a wide range of people pursuing different professions. The tax gets deducted from salaries of all employees on a monthly basis. When this involves any company, directors of company, partnerships, individual partners, or any self-employed businesses, then it will be deducted [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":18601,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[22],"tags":[1155],"acf":{"service_id":"303"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":13991,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18576"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=18576"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18576\/revisions"}],"predecessor-version":[{"id":18602,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18576\/revisions\/18602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/18601"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=18576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=18576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=18576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}