Chennai Corporation: Employers Must Pay Professional Tax Before September 30

The Greater Chennai Corporation (GCC) has directed all public and private employers within the city limits to deduct professional tax from employees` August salaries and remit the collected amount on or before September 30, 2026.

The civic body stated that the directive has been issued 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. Professional tax is collected on a half-yearly basis according to employees` gross income.

As per the revised tax structure effective from the 2024-25 financial year, employees earning up to ₹21,000 per half-year are exempt from professional tax. The maximum half-yearly tax is ₹1,250 for employees with a gross half-yearly income exceeding ₹75,000.

The GCC has instructed employers to remit the deducted tax through NEFT to IDFC FIRST Bank Limited using the account name "COMMISSIONER GREATER CHENNAI CORPORATION PROFESSIONAL TAX." The account number should match the organisation`s Profession Tax New Assessment Number (PT NAN Number) without hyphens.

In addition to the payment, employers must submit employee deduction details in Form-15 along with the Form-14 recovery return via email to [email protected] to obtain the official payment receipt.

The Greater Chennai Corporation has warned that employers who fail to deduct, remit the tax, or submit the required documents before the September 30 deadline will face strict penal action under the applicable provisions.