How Can We Manage Professional Tax Deductions in Tamilnadu to Ease Employee Concerns?

Ours is an FMCG organization based in Chennai. I need your humble advice on Professional Tax – Recovery pertaining to Tamil Nadu. As you are all well aware, in most states, PT is deducted on a monthly basis, but in Tamil Nadu, it is deducted once every six months. Now, my employees feel that a huge sum is deducted from their salary as PT when it is done on a half-yearly basis.

Need clarifications on the below-mentioned points:

1) Can we deduct the PT on a monthly basis like other states and pay the same once in six months?

2) Is there any process to get approval from the Corporation of Chennai for the same?

3) Please refer to any company/industry in Chennai or Tamil Nadu that gets exemptions to deduct PT on a monthly basis.

Thanks in advance.

Prabu

You can deduct PTAX from employees on a monthly basis, but the difficulty lies in keeping accounts for that. Who will keep the accounts—the accounts department or the HR department? There is no need to obtain prior permission from the corporate authorities.

Thank you for your response. As far as I understand, PT is a statutory deduction similar to PF, ESI, and IT. We do not have the right to retain the deducted amount in our company accounts as it may pose statutory issues. I do not wish to encounter any statutory problems, and I also want to support my staff. Please provide me with more legal insights on this matter.

Regards,
Prabu