Greater Chennai Corporation Increases Profession Tax by 35%
The Greater Chennai Corporation (GCC) Council has approved a 35% increase in profession tax rates for individuals earning between ₹21,001 and ₹60,000 per half-year. This revised tax structure will take effect from the second half of the fiscal year 2024-25.
Key changes include:
- Earnings up to ₹21,000 (half-yearly): No profession tax applicable.
- Earnings between ₹21,001 and ₹30,000 (half-yearly): Tax increased from ₹135 to ₹180.
- Earnings between ₹30,001 and ₹45,000 (half-yearly): Tax increased from ₹315 to ₹425.
- Earnings between ₹45,001 and ₹60,000 (half-yearly): Tax increased from ₹690 to ₹930.
Professionals in the ₹60,001 to ₹75,000 income bracket will continue to pay the same tax rate of ₹1,025, while those earning above ₹75,001 will maintain the tax rate of ₹1,250.
The move follows the provisions of the unified Tamil Nadu Urban Local Body (TNULB) Act and aims to increase GCC`s revenue. The tax hike is expected to generate an additional ₹8.54 crore per half-year, bringing an annual increase of ₹17.09 crore.
Profession Tax is a significant revenue stream for GCC, contributing ₹532 crore in 2023-24, second only to property tax. The increase aligns with Article 276 of the Indian Constitution, which allows profession tax levies with an upper limit of ₹2,500 per annum.
