Professional Tax

Overview

The Profession Tax assessment and collection is coming under the provision of tax on professions, trades, calling & employments, under the Tamil nadu Municipal Laws (Second Amendment) Act 1998 Profession Tax is higher source of income next to Property Tax. The Profession Tax assessment is calculated based of the Half Yearly gross income for the following categories.

Every Company transacts business and every person who is engaged actively or otherwise in any Profession, Trade, Calling and Employment with the Greater Chennai Corporation city limits has to pay half-yearly Profession Tax, as per section 138 C of Tamil nadu Municipal Laws Second Amendment Act 59 of 1998. The tax rates are given below in the table in Form-2. for assessment of Profession Tax has to make an application for registration.

Based on the gross income declared by the Half Yearly Profession Tax will be calculated as per the Table given below:

After 10 Years the respective act has been amended he new slab is given below

Consequences of Professional Tax Registration:

1. Fails to Get Registration - He will be liable to a penalty for the period during which he remains unregistered.

2. Fails to Deposit to the Government/ Late Deposition - He will be liable to a penalty for the period during which he remains unregistered.

3. Non-Deposition of Amount. - The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution case also can be filed.