Chennai Corporation Initiates Field Verification of Registered Companies to Combat Professional Tax Evasion
Chennai, February 28, 2024 – The Chennai Corporation is gearing up for an extensive drive to update its professional tax database by incorporating information from various government agencies, including the Registrar of Companies, Industries Department, and the Ministry of Micro, Small, and Medium Enterprises.
Following a recent meeting, the Corporation has acquired details such as names, addresses, and email IDs of 51,000 companies registered with the Registrar of Companies in Chennai.
The forthcoming field verification process aims to cross-verify this data, identify new assesses, and enhance the current database. Officials anticipate a substantial increase in the number of professional tax assesses, projecting a rise from 1.5 lakh to 2 lakh upon completion of the field verification.
The Corporation plans to dispatch 100 license inspectors to conduct on-site verifications of company addresses across all zones within the next year.
To facilitate this process, the civic body has urged professional tax assesses to provide self-declarations. Those found to have misrepresented information may face penalties, equivalent to 100% of the difference between the tax paid and the actual tax demand.
In addition to the data received from the Registrar of Companies, more information from the Industries Department is expected soon. The Corporation will conduct further meetings with traders to sensitize them about professional tax compliance.
Notably, professional tax collections for the year 2022-2023 totaled ₹523 crore, with this year’s collection reaching ₹347 crore. The city anticipates a surge in professional tax collection, crossing ₹550 crore in the coming month.
Stay tuned for updates on this crucial initiative to combat tax evasion.
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