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Understanding Professional Tax in Tamil Nadu: Tax Slab, Due Date, Penalty, Exemption

Introduction

As of today there are 17 Indian states that impose professional tax on self-employed individuals, the state Tamil Nadu being one of them. Professional tax in Tamil Nadu is one of the major sources of revenue for the state. This professional tax is not only applicable to employees but also basically applies to all employed persons and businesses. If you want to understand professional tax completely then study this article in depth.

Professional Tax in Tamil Nadu

Professional tax is a direct tax imposed by the Government of Tamil Nadu which is basically levied on individuals who receive salary or earn income under the professional tax structure such as lawyers, doctors, chartered accountants etc. Professional tax is basically levied under the Tamil Nadu Nagar Panchayat, Municipalities and Municipal Corporations Rules, 1998. This rule is essentially applicable to all the municipalities and Nagar Panchayats of the state.

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Professional Tax Slab Rate in Tamil Nadu

Average Monthly Income (Half-yearly/ ₹) Payable Tax Amount (Half-yearly/ ₹)
Income up to ₹ 21,000 Nil
Income from ₹ 21,000 to ₹ 30,000 ₹ 130
Income from ₹ 30,001 to ₹ 45,000 ₹ 315
Income from ₹ 45,001 to ₹ 60,000 ₹ 690
Income from ₹ 60,001 to ₹ 75,000 ₹1025
Income above ₹ 75,000 ₹1250

Due Date of Professional Tax Payment in Tamil Nadu

Professional tax payments for each half year are originally due on 1st April and 1st October. If you do not pay professional tax on time, it may result in the state government imposing a fine on you.

Penalty for Late Payment of Professional Tax in Tamil Nadu

If for any reason an employer or individual fails to pay his professional tax liability, a monthly penalty of 2% is imposed. Apart from this, an additional penalty of 10% is also imposed for non-payment of professional tax. Additionally, if you provide incorrect information, it may result in you having to pay a penalty equal to three times the amount of tax.

Persons who are Exempted from Paying Professional Tax in Tamil Nadu

There are some persons who are exempted from professional tax in Tamil Nadu such as:

  • Women agents who work exclusively under the Women Headed Regional Savings Scheme or Small Savings Director.
  • Guardians or parents of children who are mentally handicapped.
  • People who are blind or have permanent physical disability.
  • Military personnel of the forces as per the Navy Act 1957, Army Act 1950 and Air Force Act 1950 as well as members of the reserve or auxiliary forces working for the State.

Conclusion

In Tamil Nadu, every resident who is engaged in business, profession or employment has to compulsorily pay professional tax to the state government. If you are liable to pay professional tax in Tamil Nadu then you have to pay this tax on time otherwise you will have to face a heavy penalty.

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