Odisha Professional Tax
Odisha Professional Tax
Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and must be compulsorily paid by every staff member employed in private companies. The business owner is responsible for deducting professional Tax from his employees’ salaries and can then pay the amount collected to the appropriate government department. In this article, we look at Odisha Professional Tax with an emphasis on the process for registration, professional tax rates, and professional tax return filing.
The taxpayer can obtain Odisha Professional Tax registration through IndiaFilings.
Law Governing the Odisha Professional Tax
Professional Tax in the State of Odisha is administered by the “Odisha State Tax on Professions, Trades, Callings and Employments Act 2000”. The Odisha State Tax on Professions, Trades, Callings and Employments Act 2000″ provides that every Entity who is an Employer is required to be registered under this Act as a Professional Tax Deductor and Every Person / Professional is required to be enrolled under this Act if he is liable to pay Professional Tax.
Who is Liable to Pay Odisha Professional Tax?
Deductor / Employer: Business entities in Odisha are required to deduct Professional Tax from their employee’s monthly salary at the applicable rates and deposit the same into the appropriate Head of account of the State Government through Odisha Treasury every month. For the applicable rates, please refer to the rate chart.
Entities registered under GST: Entities already registered under the GST Act in Odisha or liable to be registered under the GST Act are required to enroll themselves under the Professional Tax Act and pay a fixed sum of Rs. 2500/- (Rupees Two Thousand Five Hundred Only) per annum, each year. The amount is to be deposited into the appropriate Head of account of the State Government through Odisha Treasury every year.
Other Professionals: Other Professional like Medical Practitioners, including Medical Consultants, Dentists, Radiologists, Pathologists, persons engaged in other similar professions or callings or a paramedical nature, Postal agents under National Savings Scheme or Chief Agents, Principal Agents, Special Agents, Insurance Agents, and Surveyors or Loss Assessors, Estate Agents, Promoters, Brokers or Commission Agents, Del Credere Agents or Mercantile Agents, Technical and Professional Consultants including RCC Consultants, Architects, Engineers, Actuaries, Management Consultant, Tax Consultants, Chartered Accountants and Cost Accountants, etc. are required to enroll under this Act and are required to pay at the applicable Rates every year.
Professional Tax Rates
|Sl. No.||Category of Persons Liable to Pay Professions Tax||Rate of Professions Tax based on
Annual Gross Income / Salary / Wages
|LESS than Rs. 1.6 Lakhs||Between Rs. 1.6 Lakhs to Rs. 3.00 Lakhs||Above Rs. 3.00 Lakhs|
|1.||Salary and Wage earners: Such persons, including Ministers, Members of the Legislative Assembly, and Members of Parliament from
the State of Orissa
|NIL||Rs. 125/- per month||Rs. 200/- per month for the first 11 months and Rs. 300/- for the last month|
|2||Medical Practitioners, including Medical Consultants (other than practitioners of Ayurvedic, Homoeopathic, and Unani Systems of Medicines), Dentists, Radiologists, Pathologists, and persons engaged in other similar professions or callings or a paramedical nature||NIL||Rs. 1500/-
|Rs. 2500/- Per annum
|3||Legal Practitioners, including Solicitors and Notaries Public|
|4||Postal agents under National Savings Scheme or Chief Agents, Principal Agents, Special Agents, Insurance Agents, and Surveyors or Loss Assessors registered or licensed under the Insurance Act, 1938 (4 of 1938)|
|5||Estate Agents, Promoters, Brokers or Commission Agents, Del Credere Agents or Mercantile Agents|
|6||Technical and Professional Consultants, including RCC Consultants, Architects, Engineers, Actuaries, Management Consultant, Tax Consultants, Chartered Accountants, and Cost Accountants|
Fee for Odisha Professional Tax Registration
There is no fee for registration or Enrolment under this Act. The service is provided free of cost.
There is no need to upload any document along with these forms.
Procedure to Register Odisha Professional Tax
All applications for new registration and Enrolment under this Odisha State Tax on Professions, Trades, Callings and Employments Act 2000 are to be filed online ONLY.
- Please go to the official website of the Odisha Tax Department and Click on the “e-Registration” link to the new registration page.
- Provide the correct email ID and PAN. After providing the PAN, the system will validate with the NSDL database and display the Name registered with PAN, as seen below.
- Select the radio button with the name “PT. Select a preferred secret question and answer and enter the captcha.
Note: Please keep the secret question and answer with you always. It will be required for accessing an incomplete application later if so needed.
- Once the submission is made successfully, the system will open the application page directly to be filled up. The Application page will open with two forms:
- Form I – For Deductors / Employers; and
- Form II – for Enrolment by others (Business entities, Traders, Professionals, etc.)
- Please fill up the appropriate form (Form I or Form II, as applicable). There is no need to upload any document along with these forms.
- After filling up the form correctly, “Save” the state. Please check that all the details are correct and click on the “Confirm” button for submission after checking.
- Once the application is submitted, the system will verify the details, approve the registration and Enrolment as the case may be, and send the approved registration number (TIN) and the initial User ID and Password to the given email ID.
Procedure to Pay Professional Tax
Deductors / Employers, “registered” under Professional Tax Act, must deduct and deposit Professional Tax monthly for each month. Such deposit for a given month is to be made by the last date of the succeeding month. For example, deductions made from the salaries for April are required to be deposited by the 31st of May.
- Dealers / Taxpayers “enrolled” under Professional Tax Act are required to pay Rs. 2500/- annually by the 30th of June each year.
- ProTaxsional Tax can be paid online through the Odisha Treasury Portal using Net Banking, UPI, Credit / Debit Cards, and SBI e-Pay.
- Payment can be made using the PT registration / Enrolment Number or the GSTIN by the Taxpayer.
- You can pay quickly by yourself using Internet Banking, UPI, Credit, debit Card, or SBI e-Pay.
Please refer to the attached document to learn more about the Step By Step Guide for Making E-Payment of Professions Tax through the Odisha Treasury Portal.Procedure to Pay Professional Tax
Odisha Professional Tax Returns
All returns under this Odisha State Tax on Professions, Trades, Callings and Employments Act 2000 are to be filed online ONLY.
- All taxpayers, i.e., Taxpayers registered as “Employers” under Professional Tax Act, and others enrolled under Professional Tax Act, are required to file an online return annually (annually).
- Deductors / Employers registered under Professional Tax Act are required to file their Returns online in Form V.
- Dealers / Taxpayers “enrolled” under Professional Tax Act are required to file their returns online in Form XII.
- The facility to file an online return is available in the CT & GST Organization portal under the tab “E-Annual Return Filing” after login.
- The Return is a simplified single-page return that all taxpayers can easily file. Such Return is to be filed within three months from the end of the year to which the return so reReturn
Procedure to know the details of Professional Tax paid to date
- The facility to search the details of Professional Tax paid by the taxpayers is made available in the CT & GST Organization portal.
- Click on “PT Payment Details Search.” Enter your TIN / SRIN / GSTIN to view the history of all payments made.
- Enter your TIN / SRIN / GSTIN using which Professional Tax is paid and click on Search.
- The system will display all the detailTaxf, such as Tax paid to date.