Professional Tax Bihar: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

As per Section 16 (III) of the Income Tax Act of 1961, every Indian state can impose a professional tax on its residents who have a stable income source. This article provides you with a detailed insight into professional tax in Bihar. 

Professionals like architects, chartered accountants, doctors, lawyers, consultants, etc., can pay this tax in Bihar. However, the payable amount differs for every professional; it varies per income slab. The minimum income slab for professional tax applicability in Bihar is Rs 3,00,000 per annum. 

Professional Tax in Bihar

The state government of Bihar imposes a direct tax on every profession. Every salaried or self-employed professional is liable to pay professional tax in Bihar. However, if you are a salaried person, your tax amount will be considered a deduction according to the Income Tax Act. Every professional needs a professional tax registration certificate to pay this tax. 

Bihar Professional Tax Act 

As per the Bihar State Tax on Professions, Trades, Callings and Employment Act of 2011, professional tax (PT) is extended throughout Bihar. The Bihar tax rule is enacted under this act which mandates professional tax payment for every income holder. The Commercial Taxes Department in Bihar collects professional tax from every earning individual. However, depending on your income slab, the payable amount may range from Rs 1,000 to Rs 2,500.

Professional Tax Applicability In Bihar

Here’s the list for professional tax applicability in Bihar:

• Individuals earning from salary or wages.
• Any transporter who holds a permit.
• Individuals engaged in professions like calling or conducting trade, etc.
• Companies registered in Bihar.

Professional Tax Slab Rate in Bihar

The table below represents the professional tax slab rate in Bihar as per the profession of taxpayers:

Bihar Professional Tax Payment 

Once you know the professional tax slab rate in Bihar, you can pay the amount accordingly. You can pay through treasury challan or authorised bank’s cheque or DD. Moreover, you can opt for online payment by following these steps:

1. Visit the Government of Bihar's official website of the Commercial Taxes Department.
2. Navigate the home page.
3. Click on ‘e-Registration’ and fill out the necessary details.
4. Revisit the homepage after completing the registration procedure.
5. Select ‘e-Services’ and click the ‘e-Payment’ option.
6. Fill in your login ID, State Code, and password, and enter the CAPTCHA code as provided.
7. Click on ‘Login’.
8. Once logged in, navigate to the ‘e-Payments’ option on the left side of the page.
9. Select ‘Professional Tax Payment’.
10. Once redirected, fill in the form with your required information. If needed, you can edit the form and add information accordingly.
11. Select a payment type, financial year, tax period and payment mode.
12. Enter the payable tax amount after checking the payment box on the account ID.
13. Click on ‘Submit’ to complete your payment.
14. You will receive a downloadable payment receipt after completing the payment.

Bihar Professional Tax Payment Due Date

Once you know the exact payable amount and the procedure to file the returns, ensure paying the tax on time. Professional tax in Bihar must be paid by November 15. You must follow the same due date for every year and file your return on or before November 15 to avoid penalties.

Bihar Professional Tax Late Payment Penalty

As per the Tax Assessee Authority of Bihar, you need to pay a fine of Rs 100 per month for late payments. However, if you violate the Bihar professional tax rule, the authorities will charge a fine of a maximum of Rs 500. You may also attract a daily penalty of a maximum of Rs 10 for continuous violations of the PT Act.

Bihar Professional Tax Exemption

Members of the Armed Forces of the Union are exempted from paying professional tax in Bihar.

Final Word

As a responsible individual, you must file professional tax in Bihar as per your income slab and abide by the state government’s rules. However, to file the returns seamlessly, you must complete the registration procedure by producing the required documents. 

Frequently Asked Questions

Is professional tax compulsory in Bihar?

Ans. Like most Indian states, professional tax is mandatory in Bihar for individuals earning their living from employment. Moreover, self-employed individuals are also liable to pay the tax. 

How much is the professional tax in Bihar?

Ans. Bihar's minimum professional tax rate is Rs 1,000 per year for individuals drawing a yearly salary or wage of Rs 3,00,000 and above. However, the maximum professional tax rate doesn’t exceed Rs 2,500 per annum.

Who is eligible for professional tax in Bihar?

Ans. Every individual who earns their living from employment or professions like trading, calling, etc., is liable to pay professional tax in Bihar. Professionals like doctors, lawyers, consultants, chartered accountants, architects, etc., are also included in this category.

Who is exempt from professional tax in Bihar?

Ans. If you are posted in any part of Bihar as a member of the Armed Forces of the Union, you are exempted from paying professional tax.

How to pay professional tax in Bihar?

Ans. You can pay professional tax in Bihar online or offline to the Commercial Tax Department. However, complete the registration procedure with the proper documents to proceed with hassle-free tax filing.