Introduction

It is a state-imposed tax on salaried employees, professionals, and business owners in Tamil Nadu, with compliance essential in cities such as Chennai, Madurai, Coimbatore, Salem,Tiruchirappalli and Thanjavur. Under the Tamil Nadu State Tax on Professions, Trades, Callings, and Employment Act, 1992, levies PT in Tamil Nadu. Salaried employees, individuals who are self-employed, and business owners are all subject to the tax. The maximum amount of professional tax in Tamil Nadu is ₹1,095 half yearly. In this article we will get a complete understanding over the Professional tax in Tamil Nadu including its applicability, types, documents, registration and filing process, due date and penalties. Whether you are a business or an individual, Bizfoc will help you navigate the complexities of professional tax, from registration to filing.

Who is Responsible for deducting Professional Tax Tamil Nadu?

Below mentioned two categories are responsible for deducting and remitting professional tax in Tamil Nadu:

Employers: As per the Tamil Nadu PT Act, any employers (Organizations & Businesses) who have salaried employees in their company or organization must deduct professional tax from the employees salaried every month. This deduction amount is remitted to the State Government (Tamil Nadu Government). If the employer fails to deduct and remit professional tax to the government, they face penalties.

Self-Employed Individuals: As per the Tamil Nadu PT Act, any individuals (Professionals, traders, freelancers, business owners, ect) who earns above the prescribed threshold are responsible for ducting Professional tax Tamil Nadu. For this He/she must register themselves and obtain a PTEC (Professional Tax Enrollment Certificate) first. Professional Tax payments for self-employed persons in Tamil Nadu are mainly made half-yearly.

Different Types of Professional Tax Certificate

There are two types of PT certificate. These are as follow:

Professional Tax Enrollment Certificate (PTEC):
The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies , partnership forms , sole proprietors and individual professionals. It is required to pay professional tax for both the business entity and its directors.

Professional Tax Registration Certificate (PTRC):
The Professional Tax Registration Certificate commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee salary and then deposit the same to the authorized state authority.

Exemptions for Professional Tax Tamil Nadu Online

As per the Tamil Nadu PT Act (Tamil Nadu State Tax on Professions, Trades, Callings, and Employment Act, 1992), only members of the Armed forces of the union, CRPF members and physically disabled individuals with total disability are exempted from the professional tax.

Professional Tax Tamil Nadu Payment Due Dates

Profession Tax is required to be paid by the enrolled persons on or before 30th April for annual filing and 20th of the succeeding month for monthly filing. For registered employers, profession tax is required to be paid monthly. If an employer or an enrolled / un-enrolled person fails to pay tax, within deadline or due date, he/she shall be liable to pay a simple interest 1.5% per month or part thereof, on due tax.

Document Required for Professional Tax Registration Tamil Nadu

The applicant shall produce/provide the following documents along with the application for Professional Tax Registration -

1. Photo
2. PAN Card (Photocopy)
3. Trade certificate (example - GST)
4. Rent Agreement (Photocopy)
5. Salary/wage statement of the employees
6. Current bank account copy of the employer/organization/company
7. MoU or Partnership deed
8. Other required documents etc

Stepwise process of Professional Tax Registration and Filing in Tamil Nadu

Before Professional tax filing, a company or individual must register themselves to obtain PTRC (For Employer) and PTEC (for employee/individual). The stepwise process is as follow:

Process of Professional Tax Registration in Tamil Nadu

Step 1: Visit to the “Tamil Nadu Commercial Taxes Department’s Official Portal”.

Step 2: After selecting the appropriate option and filling it accurately with relevant details and information including business or personal details, employee details (only for employers) profession and income.

Step 3: Attach all the required documents (listed above) to complete the registration process.

Step 4: After this form submission, once the government verifies all the details will issue a certificate.

Process of Professional Tax Filing in Tamil Nadu

Step 1: Log in to the Tamil Nadu Commercial Taxes Department’s Official Portal using the credentials created during registration.

Step 2: Select the relevant filing period (monthly for employers, annually for self-employed individuals).

Step 3: Enter all the details such as income or employee salary details (for employers) and the corresponding professional tax payable. For employers, the tax will be automatically calculated based on salary slabs.

Step 4: Generate the payment challan and make the payment using online banking or other available payment methods.

Step 5: Submit the return online after completing the payment. Ensure that the return is filed before the due date to avoid penalties.

Professional Tax Tamil Nadu Tax slab

The complete tax slab of Professional tax Tamil Nadu mentioned on Tamil Nadu State Tax on Professions, Trades, Callings, and Employment Act, 1992 is as follow:

Professional Tax Tamil Nadu Due Dates

Penalties with Respect to Professional Tax Tamil Nadu

The below mentioned are the applicable penalties:

Why to Choose Bizfoc?

Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.

Conclusion

The aspect of professional tax in Tamil Nadu plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax which is to be done by the employers of any profession or trade towards the respective legislation.

Frequently Asked Questions