Chennai Corporation approves professional tax hike of 35% for FY 2024-25

CHENNAI: The Greater Chennai Corporation (GCC) has approved the revised professional tax hike for the financial year 2024-25, effective from the second half of the fiscal year. The tax hike has been implemented only for three income groups, and the Tamil Nadu government has approved the same.

In July, the Chennai Corporation increased the professional tax from 25 per cent to 35 per cent for salaried individuals. Individuals earning Rs 21,000 to Rs 30,000 should now pay Rs 180 as professional tax from Rs 135. Earlier, for those earning between Rs 30,001 and Rs 45,000 had increased from Rs 315 to Rs 430, whereas the revised tax is Rs 425 which has been reduced by Rs 5.

Those drawing a salary between Rs 45,001 and Rs 60,000 should pay Rs 930 against the previous tax of Rs 690. However, the tax has not been increased for those earning up to Rs 21,000; Rs 61,001 - Rs 75,000 and above 75,001, where they have to pay the usual tax of Rs 1,025 and Rs 1,250, respectively, stated the resolution passed during the council meeting on Monday.

It is noted that after the resolution was passed in the council meeting in July, a proposal was sent to the State government in August. The Tamil Nadu government has approved the professional tax hike and a revised tax was made for six months for the financial year.