Chennai GCC sets September 30 deadline for professional tax remittance
Synopsis
The Greater Chennai Corporation has put employers on notice: deduct and remit professional tax for August by 30 September or face penal action. With a revised slab structure capping liability at ₹1,250 per half-year and a mandatory NEFT remittance route via IDFC FIRST Bank, the GCC is tightening the screws on professional tax compliance across the city's entire formal workforce.
Key Takeaways
The Greater Chennai Corporation (GCC) has set 30 September as the deadline for employers to remit professional tax deducted for August .
Employees with a half-yearly gross income of up to ₹21,000 are exempt from professional tax.
The maximum professional tax payable is ₹1,250 per half-year , applicable to those earning above ₹75,000 half-yearly, under the 2024-25 revised slab structure.
Remittance must be made via NEFT to IDFC FIRST Bank Limited using the organisation's PT NAN as the account reference.
Employers must submit Form-15 and Form-14 recovery returns to the GCC's designated professional tax email address.
Non-compliant employers face penal action under applicable Tamil Nadu municipal laws and rules.
The Greater Chennai Corporation (GCC) has directed all public and private sector employers operating within Chennai city limits to deduct professional tax from eligible employees' salaries for August and remit the collected amount to the civic body by 30 September. The directive, issued on 12 August, carries mandatory compliance obligations for all establishments covered under professional tax provisions.
Who Is Covered and What the Exemptions Are
Professional tax in Chennai is levied on a half-yearly basis, calculated on 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 whose half-yearly gross income does not exceed ₹21,000 are fully exempt from professional tax. For those earning above this threshold, the payable amount is determined by the income slab prescribed by the GCC. Under the revised tax structure that took effect from the 2024-25 financial year, the maximum professional tax liability is capped at ₹1,250 per half-year, applicable to employees whose half-yearly gross income exceeds ₹75,000.
How Employers Must Remit the Amount
The GCC has specified a precise remittance procedure. Employers are required to transfer the collected professional tax via NEFT to IDFC FIRST Bank Limited, into the account maintained under the name 'COMMISSIONER GREATER CHENNAI CORPORATION PROFESSIONAL TAX'. The organisation's Professional Tax New Assessment Number (PT NAN) — entered without hyphens — must be used as the account number to ensure accurate identification and reconciliation of payments.
This standardised process is designed to allow the Corporation to match remittances to individual establishments without ambiguity.
Documentation and Return Filing Requirements
Beyond the payment itself, employers must submit details of professional tax deductions in Form-15, accompanied by the Form-14 recovery return, as mandated under Rule 278. These completed documents are to be sent to the GCC's designated professional tax email address. Official receipts will subsequently be issued electronically by the Corporation.
The civic body has urged establishments to verify employee income details promptly and complete all deductions and return submissions before the deadline.
Penalties for Non-Compliance
The GCC has warned that employers who fail to deduct or remit professional tax within the 30 September deadline could face penal action under applicable municipal laws and rules. This comes amid the Corporation's broader push to tighten revenue compliance across Chennai's formal employment base.
With the deadline now set, employers across both public and private sectors have until end of September 2025 to ensure full compliance — or risk regulatory consequences from the civic body.
Point of View
Many of whom historically lag on half-yearly professional tax compliance. The shift to a fully digital remittance trail — NEFT with PT NAN as identifier, returns via email, electronic receipts — signals the Corporation is building an auditable compliance record, likely as a precursor to stricter enforcement. The ₹1,250 cap may seem modest, but aggregated across Chennai's millions of salaried workers, professional tax is a non-trivial revenue line for the GCC. The real question is whether the civic body has the reconciliation infrastructure to act on the data it is now demanding — past cycles have seen returns filed but enforcement remain patchy.
NationPress
12 Aug 2026
Frequently Asked Questions
What is the professional tax deadline set by the Greater Chennai Corporation?
The Greater Chennai Corporation has directed all eligible employers to deduct professional tax for August and remit it by 30 September. The directive applies to all public and private sector establishments operating within Chennai city limits.
Who is exempt from professional tax in Chennai?
Employees whose half-yearly gross income does not exceed ₹21,000 are fully exempt from professional tax under the GCC's current slab structure. Only those earning above this threshold are liable, with the amount varying by income slab.
What is the maximum professional tax payable in Chennai?
Under the revised tax structure effective from the 2024-25 financial year, the maximum professional tax is ₹1,250 per half-year. This applies to employees whose half-yearly gross income exceeds ₹75,000.
How should employers remit professional tax to the GCC?
Employers must transfer the collected amount via NEFT to IDFC FIRST Bank Limited, into the account named 'COMMISSIONER GREATER CHENNAI CORPORATION PROFESSIONAL TAX', using the organisation's PT NAN (without hyphens) as the account number.
What documents must employers submit along with the professional tax payment?
Employers are required to submit Form-15 (details of deductions) along with the Form-14 recovery return under Rule 278, sent to the GCC's designated professional tax email address. Official receipts are then issued electronically by the Corporation.
