The Tamil Nadu Tax on Professions, Trades, Callings and Employment Act (commonly known as the Profession Tax Act) came into force with the object of levying tax on professions, trades, callings and employments. It extends to the whole state of Tamil Nadu.
Profession Tax is collected from the salary of August and January. The slab rate differs for some corporations and panchayats across Tamil Nadu.
1. Short title, application and commencement
These rules may be called the Town Panchayats, Municipalities and Municipal Corporations (Collection of arrears of tax on profession, trade, calling and employment) Rules, 1998.
- These rules shall apply to all Town Panchayats, Municipalities and Municipal Corporations in the State.
- They shall be deemed to have come into force on the 1st October 1998.
2. Filing of return for payment of arrears of tax on profession, trade, calling and employment
Every trader or professional who is in arrears of profession tax shall file a return furnishing the details of the amount due by him at the rate already determined by the Council under the provisions of the Tamil Nadu Tax on Professions, Trades, Callings and Employments Act, 1992 (Tamil Nadu Act 24 of 1992), which was in force for the period from 1st April 1992 to 30th September 1998, in Form-1 to the Commissioner of a Municipality or a Corporation, or to the Executive Officer of the Town Panchayat as the case may be, on or before the 31st December 1998. The Commissioner or Executive Officer, as the case may be, may extend, if necessary, the period for filing the return by thirty days from 31st December 1998, and shall further extend the period to not later than 28 February 1999.
3. Mode of payment of tax
- The return under rule 2 shall be accompanied by a challan, in support of payment of the arrears of profession tax due by a trader or a professional for the first two half-years commencing from 1 April 1992. Provided that such payment shall be made in the office of the respective local body during office hours on all working days.
- A trader or professional shall pay the remaining arrears of profession tax due up to 30th September 1998 during every current half-year, along with the arrears for periods of not less than two half-years. Provided that the entire arrears of tax due under the repealed Tamil Nadu Tax on Professions, Trades, Callings and Employments Act, 1992 (Tamil Nadu Act 24 of 1992) shall be paid not later than three years from 1st October 1998.
- The Commissioner, or the Executive Officer as the case may be, shall accept the return and acknowledge the receipt of payment of the arrears of tax paid by the trader or professional.
4. Interpretation of these rules by the Government
- If any question arises as to the interpretation of these rules, the question shall be referred to the Government, whose decision shall be final.
- If any difficulty arises in giving effect to the provisions of these rules, the Government may, by order, do anything which appears to be necessary for the purpose of removing the difficulty.