The Greater Chennai Corporation has mandated employers to deduct professional tax from August salaries and remit the funds by September 30, as part of its intensified tax enforcement strategy within the city.
The Greater Chennai Corporation has told employers across the city to deduct professional tax from August salaries and pass the money on by September 30, 2026, stepping up enforcement of a levy that is collected twice a year from wages and other income, according to the civic body. The instruction applies to both public and private employers in Chennai.
The corporation said the order is grounded in 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, which give local bodies the authority to assess, collect and enforce professional tax within their jurisdiction. The legal framework also sets out the exemptions and rate structure used for the tax.
Under the revised slab system that took effect in 2024-25, employees earning up to ₹21,000 a half-year do not have to pay the tax, while those with half-yearly earnings above ₹75,000 face the maximum charge of ₹1,250. The city corporation said employers must remit the deducted amounts by NEFT to IDFC FIRST Bank, using the account name “Commissioner, Greater Chennai Corporation Professional Tax” and entering the organisation’s Profession Tax New Assessment Number as the account number without hyphens.
Employers must also send employee deduction details in Form-15 along with the Form-14 recovery return by email to receive an official receipt, the corporation said. It warned that any failure to deduct, remit or file the required records by the deadline could trigger penal action. The move comes as Chennai has been seeking tighter compliance on civic levies; in March, local reports said the corporation had already collected ₹1,881 crore in property and professional taxes, slightly ahead of the same point a year earlier.
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