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MOHAMED FIROZ (DIRECTOR)     06 August 2024

Profession tax

THIS QUERY RELATES TO THE TAX FIXED BY THE TAMIL NADU GOVT . MADURAI MUNICIPAL CORPORATION DEMANDS PROFESSION TAX FROM PERSONS DRAWING RS . 10000 TO 20000 PER MONTH . BUT THE TN ACT STATES THAT ONLY IF THE AVERAGE SALARY FOR SIX MONTHS  EXCEEDS RS 21000  PER MONTH THEN ONLY THIS TAX MUST BE PAID BY THE EMPLOYEE ONCE IN SIX MONTHS . BUT THE OFFICIALS OF THE CORPORATION SAY THAT RS 21000 IS THE TOTAL OF THE SIX MONTHS SALARY . IF SO , ANY PERSON EARNING A SALARY OF RS 3500 PER MONTH HAS GOT TO PAY THE TAX . PLEASE CLARIFY AS TO WHAT IS THE LOWER SLAB FOR THE ABOVE TAX ?

 



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 6 Replies

T. Kalaiselvan, Advocate (Advocate)     07 August 2024

if you are a salaried or self-employed individual who is earning a stable income, you are liable to pay professional tax in Tamil Nadu under The Tamil Nadu Municipal Laws (Second Amendment) Act, 1998. 

The professional tax payable depends on your income. For instance, if you are earning Rs 21,000 to Rs 30,000, you need to pay Rs 130 on a half-yearly basis. Simultaneously, if your income is below Rs 21,000, you are not liable to pay taxes. 

The above salary  amount exceeding Rs. 21,000 per month  and not for six months.

You can resort to legal action by sending a legal notice to the authority which is demanding the same asking for the proper authority towards their demand

P. Venu (Advocate)     07 August 2024

It appears that the Corporation has misread the rules. You may make representation to the higher authorities.

MOHAMED FIROZ (DIRECTOR)     07 August 2024

Please clarify as to whether this eligible amount of Rs. 21000 attracting Profession Tax , is to be arrived at after deductions for EPF , ESI, and leave taken ,  or is it a fixed amount .

T. Kalaiselvan, Advocate (Advocate)     09 August 2024

You can enquire further details from your employer who will nbe deducting the professional tax from your salary

P. Venu (Advocate)     09 August 2024

To myknowledge, unlike the other States, it is the LSGs (Corporation, Municipalities, Panchayat etc.) who levy prfessional tax in Tamil Nadu and Kerala directly from the employees.

Harish varun   20 September 2024

It seems there is some confusion regarding the interpretation of the Tamil Nadu Profession Tax Act. According to the Act, the threshold for paying profession tax is based on the average monthly salary over six months. If the average monthly salary exceeds ₹21,000, the tax is applicable. The officials’ claim that ₹21,000 is the total of six months' salary appears to be a misinterpretation. The Act clearly states it is the monthly average that matters, not the total for six months. Therefore, anyone earning ₹3,500 per month should not be liable to pay the profession tax. I suggest discussing this clarification with the authorities to resolve the issue.


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