Professional Tax in Jharkhand: Applicability, Slab Rates, Due Date, Penalty, Exemption, Payment Process

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Professional Tax in Jharkhand, Jharkhand Professional Tax, Jharkhand PT, PT Jharkhand, Applicability, Slab Rates, Due Date, Late Payment Penalty, Exemption, Payment Process

The professional tax imposed by the state government is akin to the income tax levied by the Central Government. In Jharkhand, individuals engaged in jobs or businesses are subject to this tax. Let’s delve into the specifics.

What Is Professional Tax?

Professional tax is a state-level tax that individuals need to pay based on their earnings. It is collected by the State Municipal Corporation. Jharkhand is one of the 17 states in India that levy professional tax.

Jharkhand Professional Tax Act

The Jharkhand State Tax on Professions, Trades, Calling, and Employment Act, commonly referred to as the Jharkhand Professional Tax Act, was passed in 2011. According to this legislation, every individual earning income in Jharkhand, regardless of the source, is obligated to pay professional tax. This includes self-employed professionals such as doctors, chartered accountants, architects, among others.

Applicability of Professional Tax in Jharkhand

Who Must Pay?

  • Every earning individual in Jharkhand, regardless of their income source, is liable to pay professional tax.
  • Self-employed professionals, doctors, architects, and other professionals fall under this category.

Eligibility Criteria

  • Central or state government employees receiving salaries from the consolidated fund of a state, country, or railway fund.
  • Employers (referred to as ‘Assessees’) are also liable to pay professional tax.
  • Employees of firms within the state’s borders, even if the firm’s headquarters are outside Jharkhand.
  • Owners of private and public limited companies, cooperative societies, foreign companies, and hotels.
  • Self-employed individuals and those working in government undertakings.

Jharkhand Professional Tax Slab Rates

The professional tax rates in Jharkhand vary based on monthly income. Here’s the breakdown:

Monthly IncomeProfessional Tax Per Month
Up to Rs 25,000Not Applicable
Rs 25,001 to Rs 41,666Rs 100 per month
Rs 41,667 to Rs 66,666Rs 150 per month
Rs 66,667 to Rs 83,333Rs 175 per month
Above Rs 83,334Rs 208 per month

Claiming Deduction

  • You can claim the professional tax paid as a deduction under Section 16 of the Income Tax Act.

Jharkhand Professional Tax Due Date

The due date for paying Professional Tax (PT) in Jharkhand depends on the registration date of an assessee. Here are the details:

Assessees Registered Before 31st May

  • If you completed the professional tax registration before May 31 of a year, you must make the PT payment for each quarter by June 30.

Assessees Registered After 31st May

  • If you registered after May 31, You need to pay the professional tax within one month of registration.

Other Cases

  • You need to pay the professional tax within 15 days of the month after a quarter ends.

Remember to adhere to the due dates to avoid any penalties and ensure compliance with the tax regulations!

Jharkhand Professional Tax Late Payment Penalty

As per the professional tax applicability in Jharkhand, every individual must pay the Professional Tax (PT) within the due date to avoid penalties. Authorities can impose a hefty penalty ranging from ₹500 to ₹5,000 in case of late payment or non-payment of professional tax. Furthermore, failure to adhere to the professional tax payment regulations results in a daily fine of ₹10 for the duration of the violation. It’s crucial to fulfill your tax obligations promptly to avoid unnecessary expenses and ensure compliance with the law.

Jharkhand Professional Tax Exemption

Individuals belonging to the following categories are exempted from Professional Tax (PT) in Jharkhand:

1. Individuals with Permanent Physical or Mental Disabilities and Their Parents

  • If an individual has a permanent physical or mental disability, they are exempt from paying professional tax.
  • Additionally, the parents or guardians of a person with a physical disability or mental retardation are also eligible for this exemption.

2. Senior Citizens Above the Age of 65 Years

  • Senior citizens aged 65 years or above are exempt from professional tax in Jharkhand.

3. Members of the Armed Forces or Border Security Force (BSF)

  • Individuals employed by the Union Ministry of Defence, Border Security Force, or Union Ministry of Home Affairs are also exempt from professional tax.

Remember, these exemptions aim to provide relief to specific categories of individuals. If you fall into any of these categories, you can enjoy the benefit of professional tax exemption in Jharkhand!

Online Payment of Jharkhand Professional Tax

Here’s a simplified and concise guide on paying your professional tax in Jharkhand online:

1. Login

  • Visit the Jharkhand Commercial Tax Department website (https://ctax.jharkhand.gov.in/).
  • Log in using your credentials (if you haven’t registered yet, you’ll need to do so first).

2. Navigate to Payment Section

  • Look for the “Payment” section or a similar option.
  • Select “JPT Payment” (Jharkhand Professional Tax Payment).

3. Enter Details

Fill in the required information. This typically includes:

  • Address details
  • Dealer type (individual/employer)
  • Payment details
  • Purpose of payment
  • Liability details

4. Make Payment

  • Complete the CAPTCHA verification.
  • Click “Make Payment” and you’ll be redirected to the e-GRAS website.
  • Choose “Online Payment” and select your preferred payment method.
  • Follow the on-screen instructions to complete the payment process.

Remember, professional tax contributes to the state’s revenue and supports various public services. Stay informed and fulfill your tax obligations responsibly!

Conclusion

Understanding professional tax in Jharkhand is crucial for individuals residing or working in the state. Paying professional tax is not only a legal obligation but also contributes to the development of the state. By staying informed and adhering to the regulations, you can ensure compliance and contribute to the betterment of Jharkhand.

FAQs

Q: Who needs to pay professional tax in Jharkhand?

Ans: Everyone earning an income in Jharkhand, regardless of the source (salary, business income, etc.), must pay professional tax, except for those exempted categories mentioned in the article.

Q: What are the professional tax slabs in Jharkhand?

Ans: The professional tax amount depends on your monthly income. Refer to the table in the article for the specific slab rates.

Q: When is the professional tax due in Jharkhand?

Ans: The due date depends on your registration date:
1. Registered before May 31st: Pay by June 30th quarterly.
2. Registered after May 31st: Pay within one month of registration.
3. Others: Pay within 15 days of the month following a quarter’s end.

Q: What are the penalties for late payment of professional tax?

Ans: Penalties range from ₹500 to ₹5,000 for late payment, plus a daily fine of ₹10 until the tax is paid.

Q: Who is exempt from paying professional tax in Jharkhand?

Ans: Individuals with permanent disabilities, senior citizens above 65, and members of specific armed forces are exempt (refer to the article for details).

Q: How can I pay professional tax online in Jharkhand?

Ans: Follow the steps mentioned in the “Online Payment of Jharkhand Professional Tax” section of the article. You’ll need to register on the Jharkhand Commercial Tax Department website before making the payment.

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