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

By Sujaini Biswas

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Updated on: May 22nd, 2024

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14 min read

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 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:

Types of Taxpayers

Payable Tax Amount Per Annum

Wage or salary holders with less than Rs 3,00,000 annual income

NA

Salaried or waged individuals with annual income between Rs 3,00,000 and Rs 5,00,000

Rs 1,000

Salaried or waged individuals with annual income between Rs 5,00,000 and Rs 10,00,000

Rs 2,000

Salaried or waged individuals with annual income above Rs 10,00,000

Rs 2,500

Dealers with less than Rs 10,00,000 annual turnover

NA

Dealers with annual turnover between Rs 10,00,000 and Rs 20,00,000

Rs 1,000

Dealers with annual turnover between Rs 20,00,000 and Rs 40,00,000

Rs 2,000

Dealers with annual turnover above Rs 40,00,000

Rs 2,500

Individuals renting their taxis or passenger vehicle with Permits for Transport Vehicles

Rs 1,000

Individuals renting their buses or trucks with Permits for Transport Vehicles

Rs 1,500

Companies involved in trades, calling, and other professions with the Companies Act of 1956 enrolment

Rs 2,500

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:

  • Visit the Government of Bihar's official website of the Commercial Taxes Department.
  • Navigate the home page.
  • Click on ‘e-Registration’ and fill out the necessary details.
  • Revisit the homepage after completing the registration procedure.
  • Select ‘e-Services’ and click the ‘e-Payment’ option.
  • Fill in your login ID, State Code, and password, and enter the CAPTCHA code as provided.
  • Click on ‘Login’.
  • Once logged in, navigate to the ‘e-Payments’ option on the left side of the page.
  • Select ‘Professional Tax Payment’.
  • Once redirected, fill in the form with your required information. If needed, you can edit the form and add information accordingly.
  • Select a payment type, financial year, tax period and payment mode.
  • Enter the payable tax amount after checking the payment box on the account ID.
  • Click on ‘Submit’ to complete your payment.
  • 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 that you pay the tax on time. Professional tax in Bihar, deducted in the month of September, 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.

Glances On Different Forms

These are the various forms used under Professional tax Bihar,

Form PT I

Application for Registration by Employer

Form PT II

Registration certificate to the employer

Form PT IA

Application for enrollment by persons engaged in profession, trade or calling

Form PT IIA

Registration certificate of enrollment

Form PT IV

Statement of tax deductions by employer

Form PT V

Statement of tax deductions by employer in case increased salary

Form PT VI

Certificate of tax deduction to employee

Form PT VIII

Annual return of tax deductions by employer 

Form PT IX

Annual return by enrolled person

Form PT X

Form for Challan payment

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?

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?

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?

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?

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?

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.

What are the documents required for registration?

  • Memorandum Of Association
  • Articles Of Association
  • PAN Card
  • Lease Agreement
  • Employer Address Proof, ID Proof, and photos
  • Employee list with salary details
  • ID & Address Proof of Proprietor or Organisation
  • Bank Account details
  • Name & Activities of the Firm or Organisation
About the Author

A manager by day and a sloth by night. I enjoy writing on topics like personal finance and investments. With 10 years of experience in fintech, creating content that resonates with readers is my forte. Read more

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Quick Summary

Professional tax in Bihar is governed by the Income Tax Act of 1961, applicable to various professions with different slab rates. Professional tax must be paid by individuals earning a stable income in Bihar, according to their respective income slabs. The state government collects tax through authorized methods and requires timely payment to avoid penalties.

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