Chennai Corporation Approves 35% Hike in Professional Tax for FY 2024-25

In the record fiscal year 2024-25, the GCC approved this increase in professional tax affecting certain income groups. This hike is approved by the Tamil Nadu government.

The approval was given after a resolution passed in July by the GCC council proposing an increase in the professional tax on salaried individuals from 25% to 35%. Accordingly, applicable to income between Rs 21,000 and Rs 30,000, the tax is fixed at Rs 180, against Rs 135. Those whose annual income goes between Rs 30,001 to Rs 45,000 were raised to a professional tax of Rs 430 from its previous tally of Rs 315; Rs 425 would still chalk out to be under the recessed tax ground.

The new tax for professional tax will work out at Rs 930, up from Rs 690, for the Rs 45,001-60,000 category. The slab for other intermediate brackets remains untouched: those earning below Rs 21,000 for the year are taxed at Rs 1,025, and those within the Rs 61,001 to 75,000 bracket are taxed at Rs 1,250.

The GCC council’s resolution of July was forwarded to the Tamil Nadu government for approval in August. After getting cleared from the government, the new rates of professional tax will be valid from the second half of FY 2024-25, which is a landmark change in tax obligation for the incomes affected above.