Professional Tax Slab in Tamil Nadu 2022-23

Professional tax is a part of the tax deducted by an employer from an employees taxable income on behalf of the State government.

As per Article 276 of the Indian Consitution, all Indian states are empowered to make laws relating to taxes on professions, trades, callings, and employment. All Indian states have the authority to levy a tax for the benefit of the state, municipality, district board, local board, or other local authority. Still, it cannot levy tax beyond the constitutionally prescribed upper limit of Rs.2,500 on an individual in a financial year.

Professional tax shouldn’t be confused with Income Tax, even though both are deducted from an employee’s taxable income. Central Government levies Income Tax, and State Government levies Professional Tax. Professional tax is the least amount you would pay from your taxable income.

If you are employed in a company in Tamil Nadu state, you have to pay your professional tax on a half-yearly basis. Payment of professional tax differs from one state to another. Though the tax burden is on the employee, it is the responsibility of the employer to deduct tax and remit to the respective state government department.

This article will teach you about professional tax slabs for employees working in Tamil Nadu.

Before that, let’s understand who is classified as an employee in Tamil Nadu for the purpose of professional tax.

Who Is An Employee For The Purpose Of Professional Tax?

In this context, the term “employee” means a person employed on salary, and it includes,

A government servant receives pay from the revenue of the central government or any state government.

A person in the service of a body, whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where such body operates within the municipal limit even though its headquarters may be outside the municipal limit; and

Here the term “person” means any person engaged actively or otherwise in any profession, trade, calling, or employment in the state of Tamil Nadu. It includes the Hindu Undivided Family (HUF), company, corporation, firm, or any other corporate body, society, club, a body of persons, or association. 

It does not include any person employed on a casual basis.

Who Can Levy Professional Tax?

In Tamil Nadu, it shall be levied by Municipalities or Corporations Council for every half year, i.e.,

1. From 1st April to 30th September
2. From 1st October to 31st March of the year. 
   

Professional Tax in Tamil Nadu for FY 2022-23:

HALLF-YEARLY SALARY (in INR)	HALF-YEARLY PROFESSIONAL TAX
upto 21,000	-NIL-
21,001 – 30,000	INR 135
30,001 – 45,000	INR 315
45,001 – 60,000	INR 690
60,001 – 75,000	INR 1025
75,001 and above	INR 1250

Mode of Payment of Professional Tax in Tamil Nadu:

1. In Tamil Nadu, the Profession Tax shall be paid online or by cash/cheque/demand draft (Cheque/demand draft shall be drawn in favor of the Commissioner of concerned ULB).
2. On successful payment, the receipt will be issued electronically and can be downloaded.
   

Who Are All Exempted From Paying Professional Tax?

1. Personnel from Indian armed forces in any part of this State to whom the provisions of the Army Act 1950, the Air Force Act 1950, and the Navy Act 1957.
2. CRPF Personnel
3. Physically disabled persons with total disability in one or both hands or legs, people with cerebral palsy, dumb or deaf persons, or blind persons are exempted from professional tax.

Consequences Of Non-Compliance with Professional Tax Regulations:

It is a State-specific query. In general, non-compliance with established tax norms of the State attracts a penalty.

A penalty can be levied for not registering with the professional tax system. Further, there are penalties for not making the payment within the due date and failing to file the return within the specified due date.

onclusion:
Suppose you are a salaried person working in a company or any other type of person eligible for paying professional tax in the State. In that case, you must keep informed of the tax structure. Doing so will help to understand your income tax filing.

Now that you have reached the end of the article, we hope you have a better understanding of professional tax slabs in Tamil Nadu for the FY 2022-23. Contact our tax experts at the eAuditor Office if you have any doubts regarding that.