Bihar Professional Tax
Bihar Professional Tax
In India, Professional Tax is levied by the respective state governments on individuals employed in government and non-government sectors or any profession, such as Chartered Accounts, Lawyers, Doctors, etc. The tax imposed differs from state to state due to the differences in tax rates set by the respective state governments. A professional tax collected from a salaried employee is considered a deduction under Income Tax Act. This article explores the various aspects of Bihar Professional Tax.
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Bihar Professional Tax Act, 2011
The Commercial Taxes Department, regulated under the Bihar Government, is responsible for collecting professional tax dues from professionals in the state. As per Bihar Professional Tax Act, 2011, individuals engaged in a business or profession are levied a Profession Tax of Rs.2500 (as the maximum) and Rs.1000 per annum (as the minimum).
Provisions for Filing Annual Return
All individuals registered under the Professional Tax Act must submit a return (Form VII) every month to the assessing authority depicting the salaries paid and the amount of tax deducted from the wages.
The return can be made by a treasury challan or any authorized bank or DD/ Cheque/ e-payment on the total amount of tax on or before the end of November every year. A return must be filed for the same, which can be done through the official website of the commercial taxes department.
Registration and Applicability
Suppose the employer is a corporate company, partnership firm, sole proprietorship, etc. In that case, one must register and obtain a professional tax registration certificate to pay professional tax on the business or profession pursued. In the case of employees, an employer is considered responsible for deducting and paying professional tax to the State Government under the specified law. Individuals seeking freelancing businesses without employees are also required to register under the respective state’s legislation.
Bihar Professional Tax Slab
Professional Tax slabs in Bihar, as provided under the Professions, Trades, Callings and Employments Act, 2011, are as follows:
| S.No | Class of Taxpayers | Amount of Tax Payable |
| 1. |
Tax on salary or wages on earning individuals: a) Persons whose income does not exceed Rs.3 Lakhs per annum. b) Persons whose income exceeds Rs.3 Lakhs per annum but does not exceed Rs. 5 Lakhs per annum. c) Persons whose income exceeds Rs. 5 Lakhs per annum but does not exceed Rs. 10 Lakhs per annum. d) Persons whose income exceeds Rs. 10 Lakhs per annum. |
Nil. Rs.1000/- per annum Rs.2000/- per annum Rs.2,500/- per annum |
| 2. |
Dealers registered under the Bihar Value Added Tax Act, 2005, or Dealers registered only under the Central Sales Tax Act, 1956, whose annual turnover of Sales or purchases: a) Are not more than Rs.10 lakhs per annum. b) Are more than Rs. 10 Lakhs per annum but do not exceed Rs. 20 Lakhs per annum. c) Exceeds Rs. 20 Lakhs per annum but does not exceed Rs.40 Lakhs per annum. d) Exceeds Rs.40 Lakhs per annum. |
Nil Rs.1000/- per annum Rs.2000/- per annum Rs.2,500/- per annum |
| 3. |
Holders of Permits for Transport Vehicles issued under the Motor Vehicles Act, 1988, which are used or adapted to be used for hire or reward, where any such person holds permit or permits for: a) any taxi passenger car or any such vehicles b) Any truck or buses. |
Rs.1000/- per annum. Rs.1500/- per annum |
| 4. | Companies enrolled under the Companies Act 1956 and engaged in any profession, trade, or calling. | Rs.2,500/- per annum |
Documents Required
The required documents to be furnished at the time of applying for professional tax include the following:
- An application form.
- Two passport-size photographs.
- Bank account details through which transactions are carried out (copy of passbook/statement of bank account showing bank name and bank account numbers and other information)
- Copy of PAN card / TAN card of Proprietor/ Partners/ Karta of HUF / employer
- Identity proof of Applicant – like the copy of voter Identity card/Aadhar card/ driving license/ Passport.
- Address proof of Applicant – like the copy of electricity bill/telephone bill driving license/passport.
Online Property Tax Registration Procedure
To register for professional tax online, follow the steps mentioned below:
e-Registration
Step 1: The Applicant has to visit the official website of the Commercial tax department of the Bihar government.
Step 2: Click on “e-Registration” under the e-Services tab of the home screen.
Step 3: Select the option’ professional category tax’ on the next page.
Application Form
Step 4: The online registration page shows up, in which the user has to provide all the mandatory fields and upload the documents required, then click on the “Add” button.
Step 5: The following pop-up window will be displayed. Click on the “submit” button.
Acknowledgment Receipt
Step 6: Click “OK” to submit the Professional Tax registration form. The acknowledgment receipt will be generated. The Applicant can print the acknowledgment receipt for further reference.
Note: Once the concerned office approves the registration, the user will be intimated through SMS and e-mail.
Track Registration Status
Registration status can be checked by selecting the registration type and entering the acknowledgment/application number.
Application Fee
The Bihar Government does not collect any application fee, processing fee, or security deposit for registering Professional Tax.
Processing Time
On submission of the application online, the concerned person will grant the certified copy of the Professional Tax registered within fifteen days from the date of application after verifying the form.
Concerned Authority
The Deputy Commissioner, Assistant Commissioner, and Commercial Tax Officer are designated as the authority responsible for granting a copy of certified professional tax.
Penalty on Failure to File Return
If a taxpayer fails to pay the required amount of tax within the specified time limit, the assessing authority may impose a penalty of two percent of the tax amount for every month of default.
