Professional Tax registration in Patna, Bihar, Jharkhand, India
Professional Tax is the tax charged by the state governments in India. Any one earning an income from salary or any one practising a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. Different states have different rate and method of collection. In India, the professional tax is imposed at the state level. However, not all the states impose this tax, the following states impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.
What is the Amount of Professional Tax?
The maximum amount payable per annum towards professional tax is INR 2,500. The professional tax is usually a slab-amount based on the gross income of the professional or on the salary of employees.
In Which States is Professional Tax Applicable?
The state governments of the following states have levied professional tax – Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, Jharkhand, Bihar & Madhya Pradesh.
Who is responsible to deduct Professional Tax?
The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department. He/she has to furnish a return to the tax department in the prescribed form within the specified time. The return should include the proof of tax payment. In case the payment proof is not enclosed, the return shall be deemed incomplete and invalid.
How to Register for Professional Tax?
Apply for the Registration Certificate to your state’s tax department within 30 days of employing staff for your business. If you have more than one place of work, apply separately to each authority as regards the place of work coming under the jurisdiction of that authority.
Professional Tax Rules & Regulations in Bihar:
| 1. |
Due date for Payment: Payment of the PT shall be made on or before 15th day of November each year. |
| 2. |
Due date for Filing of Return: Return shall be filed by the Company, on or before the last day of the November each year. |
| 3. |
Form for Return: The return shall be filed in Form PT-VIII. |
| 4. |
Definition of Salary: According to Profession Tax Act in Bihar, Salary includes pay or wages, dearness allowance and all other remunerations received by any person on regular basis, whether payable in cash or in kind and also includes perquisites and profits in lieu of salary as defined in Section 17 of the Income Tax Act, 1961. |
No. |
Amount of Annual Salary and Wages |
Tax to be Imposed (Yearly) |
1. |
Up to Rs. 2,99,999 |
NIL |
2. |
From Rs. 3,00,000 to Rs. 5,00,000 |
Rs. 1000 Per Year |
3. |
From Rs. 5,00,001 to Rs. 10,00,000 |
Rs. 2,000 Per Year |
4. |
Rs. 10,00,001 and above |
Rs. 2,500 Per Year |
Documents or Information required for Professional tax registration are as follows:
1. ID & Address Proof of Proprietor or Organisation
2. Bank Account details
3. Details of employees
4. Name & Activities of the Firm or organisation
Note :
| 1. |
This service is currently available in the state of Bihar only. |
| 2. |
Please Use Resources - List of Documents Required Tab to know more about documents required for registration at current date. |
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