Chennai, Aug 12 (IANS) The Greater Chennai Corporation (GCC) has directed all public and private sector employers operating within the city limits to deduct professional tax from the salaries of eligible employees for August and remit the amount to the civic body by September 30.

The directive is mandatory for establishments covered under the professional tax provisions, and employers have been asked to ensure that deductions and payments are completed within the prescribed deadline.

Professional tax is collected on a half-yearly basis according to the gross income of employees. The levy is governed by 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 half-yearly gross income of up to Rs 21,000 are exempt from professional tax. For those earning above the exemption limit, the amount payable varies according to the income slab prescribed by the civic body.

Under the revised tax structure that came into effect from the 2024-25 financial year, the maximum professional tax payable is Rs 1,250 for a half-year.

The highest slab applies to employees whose half-yearly gross income exceeds Rs 75,000. The Corporation has also laid down the procedure to be followed by employers while transferring the amount deducted from employees.

As per the directive, the professional tax collected should be remitted through NEFT to IDFC FIRST Bank Limited in the account maintained under the name “COMMISSIONER GREATER CHENNAI CORPORATION PROFESSIONAL TAX.” For the transaction, employers should use their organisation’s Professional Tax New Assessment Number, or PT NAN, without hyphens, as the relevant account number.

This is intended to enable the Corporation to identify and reconcile payments made by individual establishments. Employers have also been instructed to submit details of professional tax deductions made from employees in Form-15 along with the Form-14 recovery return, as required under Rule 278.

The completed documents have to be sent to the designated professional tax email address, following which official receipts will be issued electronically by the Corporation.

The GCC has asked establishments to verify their employee income details, complete the deductions and submit the required returns without delay. The civic body warned that employers who fail to deduct or remit professional tax within the stipulated period could face penal action under the applicable municipal laws and rules.

–IANS

aal/dpb