Tamilnadu Professional Tax

Professional Tax is a state-level tax levied on individuals and entities engaged in various professions, trades, callings, and employment. This mandatory tax is imposed by state governments across India, including Tamil Nadu, where it is regulated by the Tamil Nadu Municipal Laws (Second Amendment) Act, 1998, and the Tamil Nadu Professional Tax Rules, 1999. To comply with these regulations, individuals and entities must obtain Tamil Nadu Professional Tax Registration certificates. Every employer registered under the Professional Tax Act must file the Professional tax returns within the prescribed time.

IndiaFilings experts can assist you in obtaining the Tamil Nadu Professional Tax registration easily and efficiently filing returns.

Tamilnadu Professional Tax Applicability

Professional tax in Tamil Nadu applies to individuals and entities engaged in any profession, trade, calling, or employment within the state.

Individuals:

• Salaried employees.
• Self-employed professionals include doctors, lawyers, chartered accountants, consultants, and freelancers.

Organisations:

• Firms
• Companies
• Corporations
• Other corporate bodies
• Societies
• Clubs
• Associations

Criteria for Applicability

A person is deemed to have transacted business or exercised a profession, trade, calling, or employment within a Town Panchayat if they have an office or place of work within the Town Panchayat.

Note: The employer deducts professional tax from the salaries of the employees based on their salary slabs, and they are required to register and pay professional tax directly to the local authority.

Exemptions from Levy of Professional Tax in Tamil Nadu

Certain individuals and groups are exempt from paying professional tax in Tamil Nadu. These exemptions include:

• Members of the Armed Forces: Members of the Armed Forces of the Union serving in Tamil Nadu, to whom the provisions of the following acts apply:
  • Army Act, 1950 (Central Act XLV of 1950)
  • Air Force Act, 1950 (Central Act XLV of 1950)
  • Navy Act, 1957 (Central Act 62 of 1957)
• Members of the Central Reserve Police Force (CRPF):
  • Members of the CRPF serving in Tamil Nadu, to whom the Central Reserve Police Force Act, 1949 (Central Act XLVI of 1949) applies.
• Physically Disabled Persons:
  • Individuals with total disability in one or both hands or legs.
  • Individuals with spastic conditions.
  • Dumb or deaf people.
  • Blind persons.

Tamilnadu Professional Tax  Registration Process

Professional tax registration and payment can be made at all zonal offices of the respective municipal authorities within Tamil Nadu via cheque or demand draft.

For the Greater Chennai Corporation, professional tax payments can be made online by visiting the GCC website. The following steps outline the online payment process:

• Visit the Online Portal: Access the professional tax registration portal on the Chennai Corporation's official website.
• Register Details: Provide details such as your mobile number and email ID. Receive a unique username and password via SMS and email securely.
• Create and Submit Application: Log in through the Citizen portal using the credentials provided. Create the self-assessment application and submit it for professional tax registration.
• Upload Required Documents: Upload the following documents along with your application:
  • Certificate from the Registrar of Companies
  • Memorandum of Articles (for Limited Companies)
  • Proof of office location in Chennai (mandatory)
  • Certificate from the Commercial Tax Department
  • PAN Card or Bank Account details
  • Employer and employee details (mandatory)
• Acknowledgement and Registration Number:
  • An acknowledgement slip will be generated upon submission, including your Professional Tax Registration Number (PTNAN).
  • Professional Tax Registration Number (PTNAN) must be quoted in all returns, correspondence, and payment challans.

Tamilnadu Professional Tax Return Filing

Individuals and entities engaged in professions, trades, callings, or employment in Tamilnadu must report and pay their professional tax obligations to the state government. This process ensures that the correct amount of tax is paid based on the individual or entity's income or earnings.

Due Date: Professional tax returns must be filed twice a year, corresponding to the two half-year periods. The due dates for filing returns are:

• 15th September for the period from April to September.
• 15th March for the period from October to March.

Individuals and entities must submit a detailed return form, which includes information about the income or earnings and the corresponding tax amount due.

• The return must be accompanied by proof of payment of the total tax due. Returns submitted without proof of payment are not considered duly filed.
• Once the return is submitted, the executive authority reviews the details.  If the return is incomplete or incorrect, the executive authority will assess the tax amount based on their best judgment after necessary inquiries.

Taxpayers, other than salaried or wage-earning individuals, are issued a passbook containing details of tax payments.  

Penalties for Non-Compliance

Failure to file a professional tax return or pay the tax on time can result in penalties. The penalty for late payment is 2% per month on the outstanding amount. Additionally, a penalty of one rupee per month for every Rs. 100/- of tax due may be levied if the half-yearly tax is not paid within the prescribed period.

Simplify TN Professional Tax with IndiaFilings.

IndiaFilings offers comprehensive assistance in obtaining professional tax registration in Tamil Nadu. Our expert team guides you through every step of the process, from registration to filing Professional tax returns, ensuring compliance with state regulations. We help you gather and submit the necessary documents, manage timely payments, and avoid penalties for non-compliance. With IndiaFilings, you can streamline the process and ensure that your professional tax obligations are met efficiently and accurately.

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