Professional Tax in Bihar: Applicability, Slab Rates, Due Date, Payment Process

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Professional Tax in Bihar, Bihar Professional Tax, Bihar PT, PT Bihar, Applicability, Slab Rates, Due Date, Payment Process

Introduction

As per Section 16 (III) of the Income Tax Act of 1961, every Indian state has the authority to impose a professional tax on its residents who earn a stable income. In Bihar, professionals such as architects, chartered accountants, doctors, lawyers, and consultants are subject to this tax. Let’s delve into the specifics.

Bihar Professional Tax Applicability

  • Individuals Earning from Salary or Wages: Salaried individuals fall under the purview of professional tax.
  • Transporters with Permits: Transporters who hold permits are also liable to pay professional tax.
  • Professionals Engaged in Trades and Callings: This includes individuals conducting trade, calling, or other professions.
  • Companies Registered in Bihar: Companies operating within the state boundaries are subject to professional tax.

Bihar Professional Tax Act

  • The Bihar State Tax on Professions, Trades, Callings, and Employment Act of 2011 governs professional tax in Bihar.
  • Under this act, professional tax (PT) is extended throughout the state.
  • The Commercial Taxes Department in Bihar collects professional tax from every earning individual.

Bihar Professional Tax Slab Rates

The payable professional tax amount varies based on income slabs. Here’s a breakdown:

a. Wage or Salary Holders

  • Annual income less than Rs 3,00,000: Not Applicable (NA)
  • Annual income between Rs 3,00,000 and Rs 5,00,000: Rs 1,000
  • Annual income between Rs 5,00,000 and Rs 10,00,000: Rs 2,000
  • Annual income above Rs 10,00,000: Rs 2,500

b. Dealers (Based on Annual Turnover)

  • Turnover less than Rs 10,00,000: NA
  • Turnover between Rs 10,00,000 and Rs 20,00,000: Rs 1,000
  • Turnover between Rs 20,00,000 and Rs 40,00,000: Rs 2,000
  • Turnover above Rs 40,00,000: Rs 2,500

c. Individuals Renting Vehicles

  • Taxis or passenger vehicles with permits: Rs 1,000
  • Buses or trucks with permits: Rs 1,500

d. Companies Involved in Trades and Professions

  • Enrolled under the Companies Act of 1956As per the Act

Bihar Professional Tax Minimum Income Slab

  • The minimum income slab for professional tax applicability in Bihar is Rs 3,00,000 per annum.

Bihar Professional Tax Deduction

  • If you are a salaried person, your professional tax amount will be considered a deduction according to the Income Tax Act.

Bihar Professional Tax Registration

  • Every professional requires a professional tax registration certificate to pay this tax.

Bihar Professional Tax Due Date

The due date for paying professional tax in Bihar is November 15 every year. It is essential to make the payment on or before this date to avoid penalties. In case of any delay, the Tax Assessee authority may impose a penalty of not more than ₹100 for each month of delay. So mark your calendar and ensure timely compliance!

Bihar Professional Tax Payment

To pay your professional tax in Bihar, you have a few options:

a. Offline Payment

  • You can pay through a treasury challan or an authorized bank’s cheque or demand draft (DD).
  • Visit the nearest treasury office or authorized bank branch to complete the payment.

b. Online Payment

For a more convenient process, you can opt for online payment. Here’s how:

  1. Visit the Official Website: Go to the website of the Bihar Commercial Taxes Department.
  2. Register (if new): Click on “E-registration” and fill out the required information to create an account.
  3. Login (after registration): Once registered, go back to the homepage and select “E-Services” followed by “E-payment.”
  4. Enter Login Details: Enter your login ID, password, and complete the captcha verification. Click “Login”.
  5. Navigate to Payment: Once logged in, locate “e-payment” on the left side of the page.
  6. Choose Payment Option: Select “Professional Tax Payment” and then choose the type of payment, financial year, tax period, and desired payment method.
  7. Enter Payment Details: Enter the amount of tax payable after confirming all the information.
  8. Submit and Download Receipt: Click “Submit” to complete your payment. You will be able to download a payment receipt for your records.

c. Through Your Employer

  •  If you are salaried, your employer typically deducts the professional tax from your salary and deposits it with the government on your behalf.

Remember that having a professional tax registration certificate is essential for paying this tax. Stay compliant and fulfill your tax obligations responsibly!

Conclusion

Understanding professional tax in Bihar is crucial for both individuals and businesses. Ensure compliance with the applicable rates and promptly obtain your professional tax registration certificate. For more information, you can visit the Bihar Commercial Taxes Department website.

FAQs

Q: Who is liable to pay professional tax in Bihar?

Ans: Professionals, salaried individuals earning above Rs 3,00,000 per year, companies registered in Bihar, and transporters with permits are liable to pay professional tax.

Q: What is the minimum income limit for paying professional tax in Bihar?

Ans: Rs 3,00,000 per annum.

Q: What are the different professional tax slabs in Bihar?

Ans: The slabs are based on income/turnover and vary for salaried individuals, dealers, individuals renting vehicles, and companies. Refer to the article for specific details.

Q: When is the due date for paying professional tax in Bihar?

Ans: November 15th of every year.

Q: How can I pay my professional tax in Bihar?

Ans: You can pay offline through challan, cheque, or DD at authorized banks/treasury offices, or online through the Commercial Taxes Department website. Salaried individuals usually have their tax deducted by their employers.

Q: Do I need to register for professional tax in Bihar?

Ans: Yes, every professional needs a professional tax registration certificate to pay the tax.

Q: What happens if I miss the due date for paying professional tax?

Ans: A penalty of up to Rs 100 per month of delay may be imposed.

Q: Where can I find more information about professional tax in Bihar?

Ans: Visit the official website of the Bihar Commercial Taxes Department or consult a tax professional for further details and clarifications.

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