Professional Tax in Tamil Nadu: Recent Updates and Everything Employees Must Know
Taxation has existed for centuries, dating back to around 3000 BCE. In India, even during the Mauryan and Gupta periods, taxes were collected as land tax, trade tax, and other levies imposed by kingdoms.
What is Tax?
A tax is a compulsory contribution collected by the government from individuals or organizations based on income, earnings, or transactions. The revenue is used to develop the nation and improve quality of life.
In this article, we explore Professional Tax (PT) in Tamil Nadu and the recent updates.
What is Professional Tax?
Professional Tax is a state-level tax in India. It is levied on individuals who earn income through employment, freelancing, business, or professional services.
Professional Tax in Tamil Nadu
Professional Tax (PT) in Tamil Nadu is a state-level tax introduced under the Tamil Nadu Municipal Laws (Second Amendment) Act, 1998. It is governed by the Tamil Nadu Panchayats, Municipalities, and Municipal Corporations Rules, 1998. The tax is levied on individuals engaged in professions, trades, or employment, including salaried employees, self-employed persons, and professionals such as doctors, lawyers, and chartered accountants. The revenue collected through PT is utilized by local bodies like municipal corporations, municipalities, and town panchayats to fund civic infrastructure and public services.
How Salaried Employees Pay PT?
For salaried employees, employers deduct PT directly from salaries and remit it to the government.
How Non-Salaried Individuals Pay PT
Non-salaried individuals, like freelancers or business owners, must follow these steps:
Step 1: Registration
Identify the Local Authority
- Non-salaried individuals, such as freelancers, consultants, or business owners, must register with the local municipal authority, for example, Greater Chennai Corporation or the respective municipal office of your city/town.
Submit Required Information
- Provide the following details during registration:
Full Name
Permanent Address
Nature of Profession or Business
Estimated Annual Income/Profit
Obtain Registration Certificate
Once registration is complete, you will receive a Professional Tax Registration Certificate, which is required for filing and payment.
Step 2: Tax Calculation
Determine Applicable Slab
- Calculate the tax based on your annual income/profit as per the latest state government PT slabs.
Example: If your annual income is ₹3,00,000, check the corresponding PT slab rate applicable in Tamil Nadu.
Choose Payment Frequency
- Non-salaried individuals can pay annually or half-yearly, depending on convenience or as prescribed by the municipal authority.
Step 3: Payment of Professional Tax
Self-Declaration
- Prepare a self-declaration stating your income and confirming the tax liability.
- This is usually required when paying at the municipal office or during online submission.
Select Payment Mode
- Payments can be made through the following channels:
- Net Banking (through authorized municipal websites)
- Debit/Credit Card
- UPI (Unified Payments Interface)
- Challan at the municipal office
- Submit Payment
- Complete the payment and retain the payment receipt for future reference and compliance.
Step 4: Annual Compliance
Maintain Records
- Keep records of registration certificate, payment receipts, and self-declarations for at least a few years as proof of compliance.
Renew or Update Registration
- Update any changes in income, business type, or address with the municipal authority.
Ensure timely payment for the next period (annually or half-yearly).
Tip: Many municipal websites in Tamil Nadu provide an online portal for non-salaried PT payment, making the process simpler and quicker.
How to pay Professional Tax in Tamil Nadu
1.Determine Your Jurisdiction
Professional Tax in Tamil Nadu is collected by local municipal bodies. Your jurisdiction depends on your location:
- Municipal Corporations: Large cities like Chennai, Coimbatore, Madurai, etc.
- Municipalities: Smaller towns and cities.
- Town Panchayats: Rural areas and smaller administrative units.
2. Registration
If you’re a new taxpayer or setting up a business, you must register for PT:
Online Registration: Visit the respective municipal portal and complete the registration process.
Documents Required:
- Proof of identity and address.
- Business registration documents (e.g., GST registration, Shop Act license).
- Bank account details.
3. Payment
Once registered, you can pay PT:
- Online Payment: Most municipal portals offer online payment options.
- Offline Payment: Some municipalities may require payments via demand draft or cheque at designated offices.
For your reference, here we have shown how to Make PT Payment Online for people in Chennai
- Visit the Greater Chennai Corporation PT Payment for Chennai.
- Select “Professional Tax Payment” under online services.
- Enter Employer Code / Assessment Number / Registration Number.
- Verify the PT amount auto-calculated based on the slab.
- Choose the payment mode: Net Banking, Debit/Credit Card, or UPI.
- Make payment and download challan/receipt for records.
How to Pay Professional Tax in Tamil Nadu Using a Common Portal
There is a single unified portal for paying Professional Tax (PT) across all districts in Tamil Nadu. The TN Urban ePay Portal is the official platform managed by the Commissionerate of Municipal Administration. It serves as a centralized service for various urban local bodies (ULBs) in the state.
1. Visit the Portal:
- Go to https://tnurbanepay.tn.gov.in.
2. Login or Register:
- If you’re a new user, register using your mobile number or email.
- Existing users can log in with their credentials.
3. Select “Professional Tax”
- Navigate to the ‘Make Payment’ section.
- Choose ‘Professional Tax’ from the list of services.
4. Enter Assessment Details:
- Input your Assessment Number, Ward, and Locality.
- These details are typically provided by your respective municipality or corporation.
5. Review and pay
- The portal will display your outstanding PT dues.
- Choose your preferred payment method:
Net Banking
Debit/Credit Card
UPI
Challan (for offline payment)
6. Download Receipt:
- After successful payment, download the receipt for your records.
Filing Professional Tax Returns
| Requirement | Details |
|---|---|
| Frequency | Usually half-yearly |
| Documents | Income statement and PT payment proof |
| Compliance | Some municipal bodies issue a PT compliance certificate after return filing |
Exemptions in Tamil Nadu Professional Tax
Some categories are exempt from PT, including:
- Members of the Armed Forces serving in Tamil Nadu
- CRPF personnel stationed in the state
- Persons with disability (permanent blind, deaf, or handicapped)
- Senior citizens (65 years or above)
- Parents/guardians of mentally disabled children
- Temporary/substitute workers (Badli workers)
- Women agents under schemes like Mahila Pradhan Kshetriya Bachat Yojana
- Foreign employees working in Tamil Nadu
PT slabs and exemptions apply equally to men and women.
Professional Tax Payment Deadlines
| Period | Due Date |
|---|---|
| April – September | 30th September |
| October – March | 31st March |
Penalties for late payment:
- Delay: 2% per month on outstanding PT
- Non-payment: 10% penalty
- False information: Up to 3× the tax amount
Professional Tax Slabs for Half-Yearly Gross Income
| S.No | Average Half-Yearly Income (₹) | Half-Yearly PT upto 31.03.2018 | Half-Yearly PT w.e.f. 01.04.2018 | Half-Yearly PT w.e.f. II/2024-2025 |
|---|---|---|---|---|
| 1 | Upto 21,000 | — | NIL | NIL |
| 2 | 21,001 – 30,000 | 100/- | 135/- | 180/- |
| 3 | 30,001 – 45,000 | 235/- | 315/- | 425/- |
| 4 | 45,001 – 60,000 | 510/- | 690/- | 930/- |
| 5 | 60,001 – 75,000 | 760/- | 1025/- | 1025/- |
| 6 | Above 75,001 | 1095/- | 1250/- | 1250/- |
Reference: https://chennaicorporation.gov.in/gcc/department/revenue/
Key Takeaways:
- Employers should update payroll systems based on recent changes
- Freelancers/self-employed must ensure correct calculations.
Conclusion
Professional Tax in Tamil Nadu applies to salaried employees, freelancers, and business owners. Staying updated on slabs, exemptions, deadlines, and payment rules is essential to avoid penalties.
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