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Professional Tax Registration
Professional Tax Registration
Profession Tax is a state government direct tax imposed on the income earned by a wide range of people pursuing various professions.
Professional Tax Pointers for New Businesses
If you are thinking about starting a company of your own, there are some key rules and regulations you need to follow pertaining to professional tax. These key rules are as follows:
- Application of registration should be made to the assessee state tax department within 30 days of employing staff
- Mandatory Registration of employees within 30 days of employment should be done
- The professional tax amount will be deducted from the salary of the employee
- In the case of 20-plus employees, the payment should be made within 15 days from the month end
- If there are less than 20 employees, payment should be made every quarter of the year
- In case the assessee has multiple places of work, then applications should be sent to each authority under its respective jurisdiction
- The last date for filing of profession tax returns in Tamil Nadu is the last day of September and the last day of March i.e. twice a year.
Who Gets Exemption from Professional Tax in Tamil Nadu
The following is a short list of individuals who are exempted from the profession tax in Tamil Nadu:
- Anyone who is above 65 years of age
- Guardians or parents of children with mental disability
- Women agents involved exclusively under the Director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojana
- People who have a permanent physical disability, including blindness
- Textile industry Badli workers
- Military personnel of the forces as delineated under the Air Force Act 1950, the Navy Act 1957 and the Army Act 1950 plus members of the auxiliary forces or reservists working for the state
Revised Professional Tax in Tamil Nadu
The slab of the profession tax has been revised for Tamil Nadu in the year 2018. Now, it involves a new provision of tax on employment and calling as well as professions and trades. Profession Tax for the following categories will be calculated on a half-yearly basis:
- Companies
- Salaried people (State & Central Government)
- Private Establishments
- Individuals
As per the Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998, section 138 C, “Any individual occupied in any trade, profession, employment and calling in the city limits of the Corporation of Greater Chennai, will have to pay the half-yearly Professional Tax. It will be calculated based on the gross income that is declared half-yearly as follows:
| Average Monthly Income (Half-yearly/Rs.) | Revised Profession Tax (Half-yearly/Rs.) | Old Profession Tax (Half-yearly/Rs.) |
| Up to 21,000 | NIL | NIL |
| 21,001 to 30,000 | 135/- | 100/- |
| 30,001 to 45,000 | 315/- | 235/- |
| 45,001 to 60,000 | 690/- | 510/- |
| 60,001 to 75,000 | 1025/- | 760/- |
| 75,001 and above | 1250/- | 1095/- |
Documents Required for Professional Tax Registration in TN:
The following is the list of documentation required for the registration process under profession tax rules of Tamil Nadu:
- Shops and Establishment Trade License Copy/Registration Certificate
- Lease Agreement
- PAN Card
- Articles of Association
- Memorandum of Association & Incorporation Certificate
These requirements are subject to periodic change as per directions provided by the Tamil Nadu state government. You can obtain professional tax registration in Chennai & Tamilnadu through E-TAX HUB INDIA, get in touch with our experts today.
