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 a detailed insight into professional tax in Bihar. 

Professionals like architects, chartered accountants, doctors, lawyers, consultants, engineers, etc., are required to 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.

Read through this article to know more about professional tax in Bihar

Professional Tax in Bihar

The state government of Bihar imposes a professional tax on every person engaged in profession, trade, calling, or employment, including salaried or self-employed professionals. Both private and government sector employees are liable to pay professional tax in Bihar. However, your professional tax amount will be allowed as a deduction under the old regime if you are a salaried person. If you're self-employed, then your tax amount will be considered as expenses according to the Income Tax Act. Every professional needs a professional tax registration certificate to pay this tax.

Bihar Professional Tax Rule 

Under the Bihar Tax on Professions, Trades, Callings and Employment Act of 2011, the Bihar Professional Tax Rule 2011 was introduced and extended throughout Bihar. 

The Bihar professional tax rule mandates that companies, firms, societies, associations of persons (AOP), bodies of individuals (BOI), bodies corporate, Boards, authorities, Hindu undivided families (HUF), undertakings, and corporations that employ persons liable to pay tax must obtain registration under this act.

The Commercial Taxes Department in Bihar collects professional tax from every registered person. Depending on your income slab, professional tax amount in Bihar may range from Rs.1000 to Rs. 2500 (Maximum Rs.2500). 

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:

Step 1: Visit the Government of Bihar's official website of the Commercial Taxes Department.

Step 2: Navigate the home page.

Step 3: Click on ‘e-Registration’ and fill out the necessary details.

Step 4: Revisit the homepage after completing the registration procedure.

Step 5: Select ‘e-Services’ and click the ‘e-Payment’ option.

Step 6: Fill in your login ID, State Code, and password, and enter the CAPTCHA code as provided.

Step 7: Click on ‘Login’.

Step 8: Once logged in, navigate to the ‘e-Payments’ option on the left side of the page.

Step 9: Select ‘Professional Tax Payment’.

Step 10:  Once redirected, fill in the form with your required information. If needed, you can edit the form and add information accordingly.

Step 11: Select a payment type, financial year, tax period and payment mode.

Step 12: Enter the payable tax amount after checking the payment box on the account ID.

Step 13: Click on ‘Submit’ to complete your payment.

Step 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 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 30 to avoid penalties.

Bihar Professional Tax Late Payment Penalty

As per the Tax Assessment 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,

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.