Professional tax is a state-level tax levied on salaried employees, professionals, and businesses for working in a particular state in India. In Tamil Nadu, the responsibility of collecting and regulating professional tax falls under the local municipal authority. If you are a business owner, employer, or professional operating in Tamil Nadu, it is crucial to understand how to apply for professional tax registration and stay compliant with the due dates. In this blog, we will walk you through the steps to apply for professional tax registration in Tamil Nadu and explain the importance of paying the professional tax due by 30th September.
What is Professional Tax?
Professional tax is a tax imposed by the state government on individuals earning an income from salary, business, or practicing a profession such as chartered accountancy, medicine, law, etc. The amount collected is used to fund various welfare schemes for the benefit of the public. The rate of professional tax differs from state to state, and it is usually deducted by the employer from the salary of the employee and paid to the state government.
Who Needs to Register for Professional Tax in Tamil Nadu?
In Tamil Nadu, the following categories of people are required to register for professional tax:
- Employers : Every employer is required to obtain a certificate of registration to deduct and pay professional tax on behalf of their employees.
- Professionals and Self-Employed Individuals : Professionals such as doctors, lawyers, chartered accountants, and other self-employed individuals must obtain a certificate of enrollment to pay professional tax directly.
Steps to Apply for Professional Tax Registration in Tamil Nadu
1. Visit the Official Website : Go to the official website of the Tamil Nadu Commercial Taxes Department. Look for the 'Professional Tax' section to begin the registration process.
2. Create an Account : If you are a new user, create an account by providing the necessary details such as your name, email address, mobile number, and other required information. You will receive a login ID and password.
3. Login and Fill Out the Registration Form : Log in to your account using the provided credentials. Select the appropriate category (employer or professional/self-employed) and fill out the registration form with accurate details like business name, address, contact details , type of profession, and number of employees (if applicable).
4. Upload Necessary Documents : Upload the required documents such as proof of identity, address proof, PAN card, business registration certificate, and other relevant documents. Ensure that all documents are in the prescribed format and size.
5. Submit the Application : After filling in all the details and uploading the documents, review the information for accuracy. Submit the application form online.
6. Pay the Registration Fee : Pay the applicable registration fee online using a credit/debit card, net banking, or any other payment method provided on the portal.
7. Receive the Certificate : Upon successful submission and verification of documents, the Tamil Nadu Commercial Taxes Department will issue a Certificate of Registration (for employers) or a Certificate of Enrollment (for professionals/self-employed). This certificate is proof of your professional tax registration and allows you to deduct or pay professional tax as applicable.
Professional Tax Due in Tamil Nadu
Professional tax in Tamil Nadu is typically payable in two installations, with the due dates being the 30th of September. It is important to adhere to these deadlines to avoid penalties and ensure compliance. Employers must deduct professional tax from employees' salaries and remit it to the government within the specified time frame. Similarly, self-employed individuals and professionals must calculate and pay their professional tax dues based on their income.
How to Pay Professional Tax Due by 30th September
1. Calculate the Tax Amount : Employers should calculate the professional tax to be deducted from each employee's salary based on the slabs provided by the Tamil Nadu government. Professionals and self-employed individuals should compute their tax liability based on their earnings.
2. Log in to the Tax Portal : Access the Tamil Nadu Commercial Taxes Department's portal using your login credentials.
3. Go to the Payment Section : Navigate to the payment section for professional tax. Select the appropriate option for employers or professionals/self-employed.
4. Enter the Tax Details : Fill in the necessary details such as the amount of professional tax, employee details (if applicable), and the period for which the tax is being paid.
5. Make the Payment : Choose a payment method and complete the transaction. You will receive an acknowledgment or receipt upon successful payment.
6. Keep Records : Maintain copies of all payment receipts and acknowledgment for future reference and audits.
Penalties for Non-Compliance
Failing to register for professional tax or pay the due amount by the specified deadlines can result in penalties and interest charges. The Tamil Nadu government imposes a penalty for late payment and may also levy interest on the outstanding amount. To avoid such consequences, it is crucial to ensure timely registration and payment of professional tax dues.
Conclusion
Registering for professional tax and making timely payments are essential responsibilities for businesses, employers, and professionals operating in Tamil Nadu. By following the steps outlined above and adhering to the due dates, you can ensure compliance with the state's professional tax regulations and avoid penalties. Remember, the due date for the first installment of professional tax is 30th September, so make sure to calculate and pay your dues on time. Stay informed, stay compliant, and contribute to the welfare of society through your professional tax payments.
