Profession Tax Return

What is the Purpose of Levying Profession Tax?

The reason for levying any sort of tax by the government is to generate revenue in order to build robust infrastructure, pay government workers like police personnel, firefighters; ensure defence of the country, etc. Besides that, the government uses these funds for public welfare programs including child development and women’s welfare schemes. There are many different types of taxes that are imposed on the citizens e.g. income tax, capital gains tax, corporate tax, customs duty, etc. A common direct tax imposed by the state government is the professional tax.
Professional Tax is dependent on the gross income of professionals and salaried people. It is deducted from the salaries of all employees each month. When it involves a company, directors of the company, partnerships, individual partners, self-employed and businesses, it is deducted from the gross turnover of the company recorded in the previous year. In certain cases, the disbursement of tax is preset and is to be paid irrespective of what the turnover is. The slab for professional tax varies in each state across India.

Professional Tax Pointers for New BusinessesIf 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’s 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

Professional Tax in Tamil Nadu

Tamil Nadu is one of the relatively small number of states in India that actually levies profession tax on its citizens. Anyone who gets a salary or any sort of income would come under the profession tax structure. For complete understanding of who all come under the profession tax and how it is levied, you can visit the official government website http://www.tn.gov.in/dtp/professional-tax.htm. This tax is compulsory, but you can claim the income tax deduction on the amount paid as profession tax.  Constitution of India Article 276 states that the total amount payable as profession tax should not exceed Rs. 2500. The registration process for professional tax in Tamil Nadu can be completed online.

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

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.)
Up to 21,000 NIL
21,001 to 30,000 135/-
30,001 to 45,000 315/-
45,001 to 60,000 690/-
60,001 to 75,000 1025/-
75,001 and above 1250/-

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.

Tamil Nadu Profession Tax Payment Procedure

Property tax should be paid within 15 days from the commencement of half-year i.e. the month of September and March.

  • Payment can be made to all zonal offices of the respective municipal authority within the state of Tamil Nadu by cheque or demand draft.

1. What Is Professional Tax Registration Chennai and Why It’s Crucial for Your Business

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2. How to Complete Online Professional Tax Registration Chennai in Simple Steps

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4. The Ultimate Guide to Online Professional Tax Registration Chennai

Online Professional Tax Registration Chennai Is An Essential Process For Business Houses To Fulfill Tax Obligations. This Easy Procedure Saves You Time And Energy, As You Can Do It From Anywhere. Professional Tax Registration Chennai Helps Your Business Remain Compliant With Legal Requirements, Saving You From Fines And Legal Hassles. First Of All, Collect All The Necessary Documents, Like Business And Employee Details. Online Professional Tax Registration Chennai Makes It Easy To Submit The Documents Via Digital Platforms. Once The Authorities Authenticate Your Details, You Will Be Issued Your Certificate. Professional Tax Registration Chennai Establishes Business Credibility And Ensures Smooth Business Operations, Proving A Commitment To Legal Compliance In The Long Term.

5. Why Online Professional Tax Registration Chennai Is a Game-Changer for Entrepreneurs

Online Professional Tax Registration Chennai Has Revolutionized How Businesses Handle Their Tax Obligations, Offering a Seamless and Efficient Process. Entrepreneurs Benefit Greatly From Professional Tax Registration Chennai as It Ensures Compliance With Legal Regulations, Protecting Businesses From Penalties and Legal Complications. Online Professional Tax Registration Chennai Allows Businesses to Complete the Process Conveniently From Anywhere, Saving Time and Effort. It Does Help Build Credibility and Trust Among the Employees and Other Stakeholders of the Business by Opting for Professional Tax Registration Chennai. Online Professional Tax Registration Chennai Enables Easier Documentation and Quicker Registrations, Thus Becoming More of a Game-Changer for Businesses With Smooth Operation Towards Long-Term Success.

6. Essential Documents Required for Online Professional Tax Registration Chennai

To Successfully Complete The Online Professional Tax Registration Chennai Process, Businesses Have To Collect All The Necessary Documents. These Are Crucial For Legal Compliance And Help Avoid Further Delays In The Process Of Registration. Here Follows A List Of Those Basic Documents Required For Registration.                                                                                                                                                                                         > Business Registration Certificate (Incorporation certificate, partnership deed, etc.)
> PAN Card of the business and the business owner
> Employee Details, including salary information
> Address Proof (Utility bills, rental agreement, etc.)
> Bank Account Details (Business bank account proof)
> Photographs of the business owner or authorized signatory
> GST Registration Certificate (if applicable)
These documents are required for completing the Online Professional Tax Registration Chennai, ensuring compliance with local tax laws.

7. How Professional Tax Registration Chennai Protects Your Business Legally

This Makes It an Important Step for the Operation of Your Business in Ensuring That It Meets the Regulations of Local Taxation. The Online Professional Tax Registration Chennai Ensures That Your Business Becomes Legal, Hence Preventing Penalties and Other Issues from the Court. Profession Tax Registration Chennai Prevents Unwanted Fines for Your Company by Keeping You Within Tax Law Requirements. Online Professional Tax Registration Chennai Offers a Smooth Process That Ensures the Correct Registration of Your Business, Further Establishing Its Legal Standing. With Professional Tax Registration Chennai, You Can Conduct Business with Confidence Knowing That Your Business Is Covered Under Local Tax Rules and Regulations.

9. Key Requirements for Successful Professional Tax Registration Chennai

Professional Tax Registration Chennai Needs To Be Completed By Fulfilling All The Basic Requirements So That It Can Be Legally Compliant. The First Step Is To Collect All The Documents, Which Includes Business Details And Employee Information. Online Professional Tax Registration Chennai Allows One To Submit Documents From Anywhere, Saving Time. Professional Tax Registration Chennai Also Requires Proper Classification Of Business Activities To Avoid Delays. One Needs To Understand Local Tax Laws And Obligations To Avoid Errors. Following These Requirements, Online Professional Tax Registration Chennai Ensures That Your Business Is Legal Compliant And Thus Avoids Penalties And Complications While Streamlining The Registration Process For Business Success.

10. The Fast and Secure Way to Complete Online Professional Tax Registration Chennai

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