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Odisha Professional Tax

Odisha Professional Tax

Odisha Professional Tax

In India, Professional Tax is a tax levied by the state government on individuals employed in government and non-government sectors, or in practice of any profession such as Chartered Accounts, Lawyers, Doctors, etc. or performing some form of business. The tax imposed differs from one state to another due to different slab rate set by the respective state government. Professional tax collected from the salary of a salaried employee is considered as a deduction under the Income Tax Act. In this article, we examine the various aspects of Odisha Professional Tax in detail.

Odisha Professional Tax Act, 2000

The Commercial Taxes Department regulated under the Odisha Government is responsible to collect Professional Tax from various professionals in the state. As per the provisions of Odisha Professional Tax Act, 2000, an individual is levied to pay a Professional Tax with a minimum of Rs.125 and a maximum of Rs. 300 per month.

Odisha Professional Tax Slab

Professional Tax slabs in Odisha on salary or wages on earned are as follows:

S.NoMonthly SalaryTax Payable per Month
1.Up to Rs.13,304/-Nil
2.From Rs.13,304/- to Rs.25,000/-Rs.125/-
3.Above Rs.20,000/-

Rs.200/- per month except for February month.

Note: Rs.300/- for February month.

Certificate of Registration

All employers liable for deduction of tax from their employees under section 5 is required to register under Professional Tax Act 2000 of the Odisha State. Additionally, the dealers being professionals are excepted to enrol under the Professional Tax Act. Such dealers are required to register themselves through online by filling the registration Form-I under the Act. The Registering Authority may register them by approving such application and grants the applicant a certificate of registration ( Form- IA) within seven working days from the date of application.

Enrollment

After receiving a registration certificate, an application for the certificate of enrolment under section 6(2) has to be made online through the official portal by filling application (Form-II). The enrolment certificate (Form-11A) after approval will be made available in the designated portal within three working days from the date of application.

Provisions for Filing a Monthly Return

All individuals registered under the Professional Tax Act has to submit a return (Form V) to the assessing authority depicting the salaries paid and the amount of tax deducted from the wages.

The return can be done by a treasury challan, certified bank, a cheque marked or by e-payment on the full amount of tax due on the end of March every year for which the return should be filed and can be done through the official website of the commercial taxes department as well.

Documents Required

The specified documents are to be furnished at the time of submitting the application.

  • Memorandum Of Association
  • Articles Of Association
  • PAN Card
  • Lease Agreement
  • Copy of Trade License
  • Employer Address Proof and ID Proof
  • Email address and Phone Number
  • Bank Details with Cancel Cheque
  • List of employees with Gross Salary

Online Registration Procedure

To apply for e-Registration, follow the below-specified steps:

Step 1: Visit the official portal of the Commercial Tax Department of Odisha Government.

Step 2:  Click on “e-Registration” under “e-Services” which is present on the homepage.

Step 3: On the next page, the application (Form I) open up where the applicant has to enter all the details for registering.

Odisha Professional Tax - Form I
Odisha Professional Tax – Form I

Step 4: Then a pop-up screen appears where the applicant has to provide the details relevant to the business and click on the” Save” button.

Odisha Professional Tax- APOB Details
Odisha Professional Tax- APOB Details

Step 5: Now, the bank details have to be provided by the applicant and click on the “Save” button.

Odisha Professional Tax - Bank Details
Odisha Professional Tax – Bank Details

Step 6: Click on the “Confirm” button to confirm the professional tax registration application form.

Step 7: Then the applicant will receive the application receipt number as the acknowledgement.

Online Enrolment Procedure

The application steps for online enrolment is explained below :

Step 1: Visit the official portal of the Commercial Tax Department of Odisha Government.

Step 2:  Click on “e-Registration” under “e-Services” which is present on the homepage.

Step 3: Now the new user registration form appears. The taxpayer has to enter the required details and click on the ” Submit” button.

Odisha Professional Tax - User Registration
Odisha Professional Tax – User Registration

Step 4: On clicking the “Submit” button, the page will be redirected to e-Services home page showing a message “Your registration link has been sent to your email account. Please click on the link to activate the account and for submitting pending registration” and click on “Ok” button to proceed.Odisha Professional Tax - Message

Odisha Professional Tax – MessageStep 5: After completing the enrolment process, the applicant is required to check his email ID and click on the link sent to the email ID to activate the account.

Step 6: Click on “Click here” to view the Registration form which was registered before the enrolment process.

Step 7: You will be able to view the following registration form and click the “Save” button. Then follow the steps to fill then enrolment application (form II).

Odisha Professional Tax - Form II
Odisha Professional Tax – Form II

Step 8: Fill the application for enrolment with the necessary details such as

  • Applicant name
  • Address of the Business
  • Trade name
  • Email ID
  • PAN number

After entering all the details, click on the “Ok” button.

Step 9: After saving all the information click the “Confirm” button.

Step 10: After clicking the confirm button your application is submitted to the concerned circle, and the applicant will get an acknowledgement mentioning the receipt number.

Note: If your application is approved you will get the enrolment number within three working days.

e-Annual Return Filing Procedure

The steps for online annual return filing is explained below:

Step 1: The applicant has to visit the official portal of the Commercial Tax Department of Odisha Government.

Step 2:  Click on “e-Services”  which is present on the homepage of the portal.

Step 3: Now the applicant should log in to the system by entering the SRIN number, password and click on the “Login” button.

Odisha Professional Tax - Dealer Login
Odisha Professional Tax – Dealer Login

Step 4: Select “e-Annual return filing” tab from the menu and choose Professional type tax from the dropdown list.

Step5: Click on “Next” button and fill the form-V and press “Save” button and your return will be filed. Tjis procedure also generates the receipt number.

Odisha Professional Tax - Form V
Odisha Professional Tax – Form V

Penalty for Not Filing a Return

If a taxpayer fails to pay the tax within the specified time limit, the assessing authority may impose a penalty which will be above twenty-five per cent of the tax amount payable.

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