Professional Tax in Tamil Nadu Under the Tamil Nadu Town Panchayats, Municipalities and Municipal Corporations – Filing of Returns for Payment of Tax
Contents News/Article Date: 6th May 2023
Relating to which Act: Profession Tax in Tamil Nadu is levied under the Tamil Nadu Town Panchayats, Municipalities and Municipal Corporations (Collection of Arrears of Tax on Profession, Trades, Calling and Employment’s) Rules, 1998. The rules are applicable to all Town Panchayats, Municipalities and Municipal Corporations in the State.
Penalty under the Act: Employers and individuals who fail to pay their professional tax obligation are subject to a monthly penalty of 2%.
Applicable to which State: Tamil Nadu
Type: According to the Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998, Section 138 C, individuals involved in any profession, trade, employment, calling within the city boundaries of Greater Chennai must pay half-yearly professional tax. To be precise, this tax is applicable for
- Salaried Individual: Employers deduct P tax in Tamil Nadu from salaries of all employees and submit it to the State Government.
- Self-employed Individual: Self-employed individuals are liable to submit P tax in Tamil Nadu on their own.
Pertains to: Professional tax is a direct tax levied by the Tamil Nadu Government within the State. This tax is applicable to individuals who receive salary or earn income under the professional tax structure, thus including professionals such as lawyers, doctors, chartered accountants. The payment of professional tax in TN is mandatory.
Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Karma Global has set up its offices in UK, USA, UAE, Canada and South East Asia and is fully into providing solutions for workplace issues, employment law advice, immigration and negotiation, representation in employment tribunals and involvement in leading cases, addressing HR issues in line with Labour Laws, payroll, staffing and talent acquisition.
And in this instance:
FORM 2 [See Rule 6(1)]
RETURN FOR PAYMENT OF TAX ON PROFESSION, TRADE, CALLING AND EMPLOYMENT
ACKNOWLEDGEMENT
Received return for payment of tax on profession along with Challan No……………., dated for a sum of Rs…………being the tax for the half-year…………form Thiru/Thirumathi………………………
Engaged in the profession of…………………………………………on…………………………………………………….
This acknowledgement is deemed to be assessment order, subject to verification. Date………………………. Signature and Designation
Subject: Professional tax in Tamil Nadu under the Tamil Nadu Town Panchayats, Municipalities and Municipal Corporations – filing of returns for payment of tax
Attached is the Form for Filing of Profession Return