Professional tax in Tamil Nadu is a state-imposed levy on individuals and entities engaged in professions, trades, or employment. It is governed by the Tamil Nadu Municipal Laws (Second Amendment) Act, 1998, contributing significantly to the state’s revenue.
Understanding the tax structure is vital for employees, businesses, and self-employed professionals to stay compliant.
✅ Applicability of Tamil Nadu Professional Tax
Professional tax is applicable to:
- Salaried Individuals
- Employers deduct the tax from salaries and remit it to the state government.
- Self-Employed Professionals
- Individuals like doctors, lawyers, and chartered accountants must register and pay the tax directly.
- Businesses and Entities
- Companies, societies, firms, and associations operating in Tamil Nadu are liable.
💰 Professional Tax Slabs in Tamil Nadu
The tax amount varies based on income and differs across municipalities. Below is the slab for Greater Chennai Corporation:
| Average Monthly Income (₹) | Half-Yearly Tax (₹) |
|---|---|
| Up to 21,000 | Nil |
| 21,001 – 30,000 | 100 |
| 30,001 – 45,000 | 235 |
| 45,001 – 60,000 | 510 |
| 60,001 – 75,000 | 760 |
| Above 75,000 | 1,095 |
💡 Note: Rates may vary across regions. Verify with your local municipal corporation for accurate rates.
📅 Payment Schedule and Due Dates
Professional tax is payable semi-annually:
- First Half-Year: April 1 to September 30
- Due by: September 30
- Second Half-Year: October 1 to March 31
- Due by: March 31
Employers must ensure timely remittance to avoid penalties.
🚫 Exemptions from Professional Tax
Certain categories are exempt from paying professional tax, including:
- Senior citizens aged above 65 years
- Parents or guardians of children with mental disabilities
- Individuals with permanent physical disabilities
- Badli workers in the textile industry
- Military personnel in the Army, Navy, or Air Force, including reservists
🔗 Where to Check for Updates?
For the latest information, visit the official Tamil Nadu government portal. Staying updated ensures compliance with changing rules and rates.
🌟 Why is Compliance Important?
Professional tax compliance safeguards businesses and individuals from penalties while contributing to essential public services. Understanding exemptions and adhering to due dates can also help reduce your tax burden.
Stay updated, stay compliant.