Corpn to impose wpenalty and interest for late payment of profession tax

The civic body has been levying profession tax for persons employed in the limits of Chennai Corporation in two half years – from April 1 to September 30 and October 1 to March 31.

“Penalty and interest will be levied under Chennai City Municipal Corporation Act after the due date (September 30) specified for payment. Interest will be calculated based on the income for the entire period of default,” said a Corporation press release. Meanwhile, a Corporation official said that the civic body has a profession tax demand of Rs 200 crore for the current half year and should collect the amount before September 30. “We have collected only Rs 147 crore as on September 26. During the first half of 2018-19 financial year, we had collected Rs 175 crore, and Rs 385 crore for the full year,” he added.

The Corporation collects Rs 135 as profession tax for half-yearly income between Rs 21,001 and Rs 30,000. For half-yearly income of Rs 75,001 and above, professionals should pay a tax of Rs 1,250. No tax is levied from those with a half-yearly income less than Rs 21,000. The civic body is awaiting State government’s approval to levy penalty from those who pay property tax after the due date, while offering incentives to the property owners who pay it on time.