Throughout India, professionals and trades are subject to professional taxes. It is a state-level tax that all employees of private companies must pay. Professional taxes are deducted from the salaries of employees by the business owner. Amounts collected so far can be paid to the appropriate government department. Among the key points, we discuss in this article are the process for registering, what tax rates to expect, and how to file professional tax returns in Tamilnadu.
Professional Tax Registration in Tamilnadu
Almost all businesses in Tamil Nadu, as well as individuals in any profession, trade, calling, or occupation, are subject to professional tax. An employee or professional must self-assess the professional tax based on their half-yearly gross income. Applicants for Professional Tax Registration should submit the application along with the required documents to their local Revenue Office or Divisional License Inspector in Tamilnadu. The forms for registration at the Ripon Building in Chennai, Tamilnadu, can be obtained from the Corporation of Chennai.
Tamilnadu Professional Tax Rates
There are several slabs of professional tax in Tamilnadu:
- A half-yearly income up to Rs.21,000 is nil
- An annual income level of Rs.21,000 to Rs.30,000 – Rs.100
- Those with half-yearly incomes between Rs.30,001 and Rs.45,000 are eligible for a dividend of Rs.235.
- A half-yearly income of Rs.45,001 to Rs.60,000 equals Rs.510
- The half-yearly income falls between Rs.60,001 and Rs.75,000 – Rs.760 per month
- Those who earn more than Rs.75,001 in half-yearly income must pay Rs.1,095 for it
Payment of professional tax in Tamilnadu can be made via check, challan, or demand draft. Tax payment and filing of professional tax returns in Tamilnadu are due on 1st April and 1st October, respectively.
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