Professional-Tax-in-Chennai-Tamil Nadu

Professional Tax in Chennai, Tamil Nadu State

Professional tax is a direct tax levied by the State Government on all kinds of professions, trades and employment in proportion to the income of the individual. Article 276, Clause 2 of the Indian Constitution covers the provision concerning professional tax in the country. Professional tax is imposed by state governments on the individuals who are employed in governmental, private and non-governmental organizations. The quantum of levy varies according to the strata of income. Profession tax is governed by the Town Panchayats, Municipalities and Municipal Corporation Rules, 1988. The slab rates are as follows: All employees and professionals with a monthly salary of over Rs. 3500 must pay profession tax, starting at just Rs. 16 per month and going up to Rs. 182 per month for those earning over Rs. 12,501.

Who Pays Professional Tax in Chennai or the State of Tamil Nadu?

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. Half yearly income above Rs. 21000 attracts Professional tax.

Categories of individuals that can claim exemption from paying professional tax:

  • An employee who has been employed for less than 120 days.
  • Senior citizens who have completed 65 years of age,

  • Parent of a mentally challenged child,
  • Persons or parents of children suffering from physical disability,
  • Physically handicapped persons with 40 % or more disability and,
  • Badli workers in the textile industry.

Professional Tax Slab Rates in Chennai, State of Tamil Nadu

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.

Average Half Yearly Income (Rs.) Professional Tax Levied (P.M)
Upto 21000 NIL
21001 to 30000 Rs. 135
30001 and 45000 Rs. 315
45001 and 60000 Rs. 690
60001 and 75000 Rs. 1025
Above 75001 Rs. 1250