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Bihar Professional Tax

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 in practice of any profession such as Chartered Accounts, Lawyers, Doctors, etc. The tax imposed in this manner differs from state to state due to the differences in tax rates set by the respective state governments. Professional tax collected from a salaried employee is considered as a deduction under Income Tax Act.  This article explores the various aspects of Bihar Professional Tax.

Bihar Professional Tax Act, 2011

The Commercial Taxes Department regulated under the Bihar Government is responsible for the collection of professional tax dues from professionals in the state. As per the provisions of Bihar Professional Tax Act, 2011, individuals engaged in a business or profession are levied 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 has to 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 full 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

If the employer is a corporate company, partnership firm, sole proprietorship, etc., it is required to register and obtain a professional tax registration certificate to pay professional tax on the business or profession being 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 who are on the pursuit of any freelancing businesses without any employees are also required to register themselves 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.NoClass of TaxpayersAmount of Tax Payable
1.

Tax on salary or wages on earning individuals:

a) Persons, whose income do 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 does 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:

  • 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” which is under the e-Services tab of the home screen.

 

E-Registration - Bihar Professional Tax
E-Registration – Bihar Professional Tax

Step 3: On the next page, select the option ‘professional category tax’.

e-Registration - Bihar Professional Tax
e-Registration – Bihar Professional Tax

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, and then click on the “Add” button.

Application Form - Bihar Professional Tax
Application Form – Bihar Professional Tax

Step 5: The following pop up window will be displayed. Click on “submit” button.

Acknowledgement Receipt

Step 6: Click on “OK” to submit the Professional Tax registration form. The acknowledgment receipt will be generated. The applicant can print the acknowledgement receipt for further reference.

Acknowledgment- Bihar Professional Tax
Acknowledgment- Bihar Professional Tax

Note: Once the registration is approved by the concerned office, the user will be intimated through SMS and e-mail.

Track Registration Status

The status of Registration can be checked by selecting the type of registration and entering the acknowledgement /application number.

Track Status - Bihar Professional Tax
Track Status – Bihar Professional Tax

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 Professional Tax registered within fifteen days from the date of application, after verification of the form filled.

Concerned Authority

The Deputy Commissioner, Assistant Commissioner and the Commercial Tax Officer are designated as the authority responsible for granting the 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 which will be two per cent of the tax amount for every month of default.

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