The Times of India      08.06.2010

CHENNAI: Collection of profession tax has fetched the revenue department of Chennai Corporation a whopping Rs 25 crore in less than two months of the current fiscal year -- which officials say is a record of sorts.

Any company that transacts business or any person engaged actively or otherwise in any profession, trade and employment within the corporation limits has to pay half-yearly profession tax. According to Section 138 of the Chennai City Municipal Corporation Act, 1919, every person who is liable to pay profession tax should pay it before September 30 and March 31 of every year.

"The innovative measures taken up by the corporation recently have helped attain the high target," a senior official said. For instance, the postal requisition forms introduced in March last have reached more than 4.5 lakh households. The corporation has a tie-up with India Posts Chennai Circle to send direct posts. The unaddressed postal cover with assessment call notice and form II for payment of tax have been sent to individuals through Direct Post.

Direct Post is the brainchild of the postal department, launched on the sidelines of increasing commercial activity in the country. It caters to business organisations to advertise their products and services directly to the consumers. "We are yet to arrive at the number of new assessees through Direct Post. But we are sure that more than 30% new assessees would have come through this postal mode," an officials said.

The revenue department could net only Rs 17 crore during the corresponding period in the previous fiscal. Profession tax assessment is calculated on the half-yearly gross income for the following categories -- salaried (Union and state government) individuals, private establishments and companies. Records reveal that 17,825 private establishments and 53,538 individuals are profession tax payees in Chennai.

The profession tax collection stood at 54.26 crore during 2005-06, before swelling to Rs 63.69 crore in 2006-07 and Rs 73.83 crore in 2007-08. The department surpassed the targetted Rs 85 crore in last fiscal, following hike in tax rates that ranged between 25% and 35%. "Rs 127 crore was realised and this helped the civic body implement various welfare schemes," the official added.

The new tax rates introduced with retrospective effect from October 2008 has not had any new income slabs. Those whose average half-yearly income is between Rs 21,000 and Rs 30,000 will have to shell out Rs 100 and those in the bracket of Rs 30,001 and Rs 45,000 (Rs 235), Rs 45,001 and Rs 60,000 (Rs 510), Rs 60,001 and Rs 75,000 (Rs760) and Rs 75,001 and above (Rs 1,095).