Chennai, August 12: The Greater Chennai Corporation (GCC) has issued a directive to all government and private sector employers operating within the city limits. They are required to deduct professional tax from the salaries of eligible employees for the month of August and submit the collected amounts by September 30.
This directive is essential for institutions that fall under the purview of professional tax regulations. Employers are urged to ensure that tax deductions and payments are completed within the stipulated timeframe.
Professional tax is collected biannually based on the total income of employees. It is enforced under Section 117-C of the Tamil Nadu Urban Local Bodies Act, 1998, and Rule 277(2) of the Tamil Nadu Urban Local Bodies Rules, 2023.
Employees with a total income of up to ₹21,000 over six months are exempt from professional tax. For those earning above this threshold, the tax amount varies according to income slabs determined by the civic body.
Under the new tax structure implemented for the financial year 2024-25, the maximum professional tax for six months is capped at ₹1,250. The highest slab applies to employees whose total income exceeds ₹75,000 over six months. The corporation has also outlined the procedure employers must follow when transferring the deducted amounts.
Employers are instructed to submit the necessary Form-14 recovery return and details of professional tax deductions made from employees in Form-15, as mandated by Rule 278.
All completed documents must be sent to the designated email address for professional tax, after which the corporation will issue official receipts electronically.
The GCC has advised establishments to verify their employees’ income information, complete deductions, and submit the required returns without delay. The civic body has warned that employers failing to deduct or submit professional tax within the specified timeframe may face punitive action under applicable municipal laws and regulations.
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