Topics: 1998, Local government, Municipality Pages: 5 (1648 words) Published: May 26, 2013
Professional Tax
Tax on Profession, trade, calling and employment.
1) "Employee" means a person employed on salary and includes, 1) a Government servant receiving pay from the revenue of the Central Government or any State Government; 2) 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 3) a person engaged in any employment by an employer not covered by sub-clauses (i) and (ii); 2) "employer" in relation to an employee earning any salary on a regular basis under his means, the person or the officer who is responsible for disbursement of such salary and includes the head of the office or any establishment as well as the Manager or Agent of the employer; 3) "half-year" shall be from the 1st day of April to the 30th day of September and from the 1st day of October to the 31st day of March of a year; 4) "month" means a calendar month;

5) "person" means any person who is engaged actively or otherwise in any profession, trade, calling or employment in the State of Tamil Nadu and includes a Hindu undivided family, firm, company, corporation or other corporate body, any society, club, body of persons or association, so engaged, but does not include any person employed on a casual basis; 6) "Tax" means the tax on profession, trade, calling and employment levied under this Chapter.

Levy of Profession tax :
1) There shall be levied by the Municipal Council a tax on profession, trade calling and employment. 2) Every company which transacts business and every person, who is engaged actively or otherwise in any profession, trade, calling or employment with in the Town Panchayat on the first day of the half-year for which return is filed, shall pay half-yearly tax at the rates specified in the Table below in such manner as may be prescribed:


|Sl. No. |Six months income (Rs.) |Old Tax (Rs) |New Tax (Rs) | |1 |upto 21,000 |- |- | |2 |21,001 – 30,000 |75 |100 | |3 |30,001 – 45,000 |188 |235 | |4 |45,001 – 60,000 |390 |510 | |5 |60,001 – 75,000 |585 |760 | |6 |75,001 and above |810 |1095 |

Profession Tax Collectable from the salary of August (Ist Quarter ) and January (IInd Quarter) 3) The rate of tax payable under sub-section (2) shall be published by the executive authority in such manner as may be prescribed. 4) Where a company or person proves that it or he has paid the sum due to account of the tax levied under this chapter or any tax of the nature of a profession tax imposed under the Cantonments Act, 1924 for the same half-year to any local authority or cantonment authority in the State of Tamil Nadu such company or person shall not be liable by reason merely of change of place of business, exercise of profession, trade, calling or employment or residence, to pay the tax to any other local authority or cantonment authority. (Central Act II of 1924). 5) The tax livable from a firm, association or Hindu undivided family may be levied on any adult member of the firm, association or family. 6) Where a person doing the same business in the same name in one or more places within the Town Panchayat, the income of such business in all places within the Town Panchayat shall be computed for the purpose of levy of tax and such person shall pay the tax in accordance with the provisions of this Chapter. 7) Where any company, corporate body, society, firm, body of persons or...
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