Professional tax is a tax collected by the state government in India. Professional tax is compulsory and is levied on any working professional or salaried individual in India. The professional tax amount charged by the state government depends on the state. Professional tax is a source of revenue for the government. The maximum tax amount payable is Rs.2,500 per year and there are predetermined slabs for the tax rate. The owner of the business collects the tax and then pays it to the state government.
Tamil Nadu Professional Tax:
Tamil Nadu is one of the states in India which collects professional tax from the working individuals in the state. The tax is also applicable for professionals like chartered accountants, lawyers, doctors, etc. The professional tax to be paid depends on the professional tax slab rate of Tamil Nadu which keeps changing every year.
How to Register for Professional Tax in Tamil Nadu?
The employer should apply for Registration certificate to Tamil Nadu tax department within 30 days of employing staff for their business.The individual should apply separately for each business if they have more than one business.
Tamil Nadu Professional Tax Slab Rate:
Professional tax is levied under the Town Panchayats, Municipalities and Municipal corporations rules 1988. Given below is the professional tax slab rate for salaried, income earning individuals in Tamil Nadu.
|Monthly Salary||Professional Tax Amount Payable in Tamil Nadu|
|Salary less than Rs.3500||Rs.16.50 per month|
|Salary between Rs.5000 to Rs.7500||Rs.30 per month|
|Salary between Rs.7500 to Rs.10000||Rs.85 per month|
|Salary between Rs.10000 to Rs.12500||Rs.126.50 per month|
|For salary above Rs.12500||Rs.182.50 per month|
Professional Tax India:
Article 276 of the Constitution of India states that ‘A certain amount shall be levied and collected as tax on professions, trades, callings and employments in accordance with the provision of this act. Every Indian resident involved in a profession, trade, calling or engagement is liable to pay professional tax to the state government of the state that they reside in.’ The profession tax collected in India by the government is one of the main sources of revenue for the state government.
Professional tax in India is only levied in few states including Karnataka, Kerala, Assam, Madhya Pradesh, Tamil Nadu, West Bengal, Gujarat, etc.