Taxation

Here’s all you need to know about Tamil Nadu Professional Tax Registration

Its state government levies tamil Nadu Professional Tax & the Commercial Tax Department of the state is responsible for collecting the professional tax & using it for the development of the state.

In this article, we will discuss the various aspects of Tamil Nadu’s Professional Tax.

What do you mean by Tamil Nadu Professional Tax?

The professional tax in Tamil Nadu’s state is a state-level tax levied based on the tax slab rates ascertained by the state government under the Tamil Nadu Municipal Laws (Second Amendment) Act 1998^[1].

The Tamil Nadu professional tax is applicable on the following:

• Companies;
• Firms;
• LLPs;
• Corporation;
• HUF;
• Societies;
• CS;
• CA;
• Lawyers;
• Medical representatives;
• Associations, etc.

The professional tax must be paid by every earning individual. The maximum of Rs. 2500 can be levied as professional dues annually & the payment of the same in the state of Tamil Nadu is made of half- yearly basis.

What are the documents required for Tamil Nadu Professional Tax?

The required documents for the professional tax registration in Tamil Nadu are:

• Incorporation certificate
• Memorandum of Articles & Association of Articles (in case of limited company)
• Address proof of the office in Chennai
• Certificate from the Commercial Tax Department of Chennai
• PAN Card
• Bank Details
• The list of employees with their salaries

The due date for the payment of professional tax in Tamil Nadu & filing the return is 1^st April & 1^st October of the respective half-year.

What is the eligibility for Tamil Nadu professional tax registration?

For the salaried individuals, the applicability of professional tax will depend on the employer. Where the employer is paying a certain amount to the employee as salary or wages & that exceeded a certain slab amount, then the employer has to deduct the professional tax & deposit the same to the state government. The employer have to check:

• Whether the professional tax is being levied by the concerned state?
• If yes, then does the salary exceeds the base amount as per the slabs?
• If yes, does they obtain professional tax enrollment certificate& professional tax registration certificate?

If all the questions above are affirmative, then the professional tax levied will be deducted by the employer in this case.

What is the tax slab rate for Tamil Nadu Professional Tax?

The tax slab rate has recently been amended by the government.

The tax slab rate for professional tax in Tamil Nadu is determined by the state government &the old & new professional tax levied is listed in the table below.

S. No.	Half – yearly income	Half Yearly professional Tax (from 1-10-2008 to 21-03-2018)	Half Yearly professional Tax w.e.f 1-04-2018
1	Up to Rs. 21,000	N/A	N/A
2	Between Rs. 21,001 & Rs. 30,000	Rs. 100	Rs. 135
3	Between Rs. 30,001 & Rs. 45,000	Rs. 235	Rs. 315
4	Between Rs. 45,001 & Rs. 60,000	Rs. 510	Rs. 690
5	Between Rs. 60,001 & Rs. 75,000	Rs. 760	Rs. 1025
6	Above Rs. 75,001	Rs 1095	Rs. 1250

What is the process of registration of professional tax is Tamil Nadu?

The steps to be followed for professional tax registration in state are:

Step 1: Visit the online portal of the Chennai Government for the registration of professional tax. (www.chennaicorporation.gov.in) 

Step 2: After entering the personal details of the applicant, the applicant will receive a unique user name & password on the registered mobile & email of the applicant.

Step 3: The applicant then have to create a self – assessment application & submit it for the purpose of professional tax.

Step 4: The documents that are to be uploaded along with the application are:

• Incorporation certificate
• Memorandum of Articles & Association of Articles (in case of limited company)
• Address proof of the office in Chennai
• Certificate from the Commercial Tax Department of Chennai
• PAN Card
• Bank Details
• The list of employees with their salaries

Step 5: No fees is to be paid for the application for professional tax.

Step 6: An acknowledgement receipt will be generated on the submission of the application, which will be used for filing of return. Professional Tax Registration Number will be also be generated alongwith the acknowledgement receipt.

Step 7: The assesse can pay the professional taxusing online or offline mode of payment.

Step 8: After the professional tax payment, the assesse can download the copy of professional tax assessment from the COC website.

Step 9: After the generation of professional tax assessment, the details of the applicant will be verified by the respective ARO of the zone.

Step 10: After the verification, the ARO will either confirm the assessment or revise it.

What is the penalty imposed for professional tax in Tamil Nadu?

A penalty will be imposed in case of:

• Delay payment, a penalty of 2% per month will be imposed;
• Non-payment of professional tax, additional penalty of 10% will be imposed;
• Delay in obtaining certificate of enrolment, a penalty of Rs 2 per day will be imposed;
• Where the information is found to be incorrect or false, penalty imposed is 3 times of the tax amount due;
• Late filing of returns, a penalty of Rs. 300 will be imposed.

Conclusion

It is evident from the article that the professional tax have to paid by every earning individual & the maximum of Rs. 2500 annually can only be paid as professional tax. Thus, it is important to understand, the various aspects that includes tax slab rates, the procedure of registration, and the documents required etc.

Read our article: All you need to know about Telangana Professional Tax Registration