Profession Tax

1. CODAL PROVISION

Please see Chapter VIII (Taxation) and specifically see Sections 144 to 151 of the Puducherry Municipalities Act, 1973.
The Pondicherry Municipality (Profession Tax) Rules, 1976.

2. BASIS OF ASSESSMENT OF TAX

Income from (i) Profession, Art or Calling or Business or appointment (Public or Private) or (ii) Investments

3. PERSONS LIABLE TO PAY TAX

Every company which transacts business for not less than 60 days in the aggregate in any half-year.
Every person in any half-year exercise a profession, art or calling or transacts business or holds any appointment, public or private for not less than 60 days in the aggregate and is in respect of any income from investments.
Any adult member of the firm, association or joint Hindu family.

4. TAX TARIFF

Profession tax tariff based on half-yearly income
Class	Half-Yearly Income		Maximum Half-Yearly Tax
Class	From	To	Maximum Half-Yearly Tax
I	Upto 99,999	--	Nil
II	1,00,000	2,00,000	250
III	2,00,001	3,00,000	500
IV	3,00,001	4,00,000	750
V	4,00,001	5,00,000	1,000
VI	5,00,001 and above	-	1,250

Filling of return of income of the employees by the Employer.

Profession tax employer responsibilities and assessment requirements
Responsibility of the Employer	To deduct tax from salary or wages or other sum of the employee.
	Every employer/company shall furnish a statement of salary paid to the employees to the Commissioner after completion of every half year.
	Every employer shall on receipt of a requisition from the Commissioner, deduct from the salary or wages of any person employed by the employer and pay to the Municipality.
Assessment of Income in the case of Company or person in transacting business	The income will be assessed on the basis of turnover of business.
Filling statement of turnover of business	Every company or person transacting any business shall furnish a statement of turnover of business after the completion of every half-year.

PART-II No 28 dated 17-5-2017