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

The professional tax imposed by the state government is the same as the income tax imposed by the Central Government. You need to pay a certain percentage of your earnings to the Commercial Tax Department of the respective state as professional tax. Only 17 states levy professional tax in India, and Jharkhand is one of them. 

The following article provides detailed information on Professional Tax in Jharkhand.

Professional Tax in Jharkhand

If you have a job or are associated with a business or profession in Jharkhand, the state government will impose a professional tax on your income. The professional tax amount in Jharkhand varies between Rs. 1200 and Rs. 2500, according to income slab. The Maximum professional tax in Jharkhand is Rs. 2500 . The minimum income slab for professional tax applicability in Jharkhand is Rs 3,00,000 per annum.

However, under the old tax regime, a salary employee could claim a deduction for professional tax, and self-employed employees could claim it as an expense.

Jharkhand Professional Tax Rule

The Jharkhand State Tax on Professions, Trades, Calling, and Employment Act was enacted in 2011. This act is commonly known as the Jharkhand Professional Tax Act. 

The Jharkhand Professional Tax Act mandates that every person engaged in professional, trade, calling, employment, or business in the state of Jharkhand, including a cooperative society, club, association, HUF, firm, company, foreign company, or society, is liable to obtain registration under this act.

Under this act, every earning individual in Jharkhand, irrespective of their source of income, is liable to pay professional tax. The State Municipal Corporation collects professional tax in Jharkhand.

Professional Tax Applicability in Jharkhand

As per Article 276 of the Constitution of India, the following individuals are eligible to pay professional tax in Jharkhand:

• Any Central or state government employee who receives a salary from the consolidated fund of a state, country, or railway fund, etc.
• An employer or ‘Assessee’ is also liable to pay professional tax in Jharkhand.
• Employees of a firm within the state's border with its headquarters outside the state must pay this tax. 
• Owners of private and public limited companies, cooperative societies, foreign companies, hotels, etc., must also pay this tax. 
• Self-employed individuals and those working in Government-undertaking firms are also liable to pay professional tax.

Professional Tax Slab Rate in Jharkhand

Check out the table below to know the professional tax slab rate in Jharkhand applicable for employees:

Enrollment Tax Slabs For Persons Engaged in Business or Profession.

Click here to learn further the type of business/profession and the amount of taxes to be paid.

Forms Involved

There are two kinds of forms for professional tax registration

• Form I - For employer
• Form-II - For self-employed person

Jharkhand Professional Tax Online Payment

You can follow these steps to pay the professional tax in Jharkhand online:

Step 1: Log in to the official website of the Jharkhand Commercial Tax Department by entering your credentials.

Step 2: You will find a new webpage with a dialogue box on the left side of the page.

Step 3: Select ‘Payment’ in that box and click on ‘JPT Payment’.

Step 4: Enter the required information, including address, dealer type, payment details, purpose, liability details, etc.

Step 5: Fill out the CAPTCHA code in the required box and click on ‘Make Payment’.

Step 6: You will be redirected to the e-GRAS website.

Step 7: View 'Payment Details' and select the 'Online Payment' option.

Step 8: Click on ‘Submit’ and select a convenient payment gateway.

Step 9: Click on ‘Agree’ after reviewing the payee details and click on ‘Proceed to Payment’.

Step 10: Follow the provided instructions to complete the payment procedure.

Jharkhand Professional Tax Payment Due Date

The due date for paying professional tax in Jharkhand depends on the registration date of an assessee. If you have completed the professional tax registration before May 31 of a year, you must make the PT payment for each quarter by June 30. 

However, if you have completed the registration procedure after May 31, you must pay the professional tax within one month. In other cases, you must pay the professional tax within 15 days of a month after a quarter ends.

Professional taxes are deducted from monthly salary and deposited by 15th of the month after the expiry of a quarter.

Jharkhand Professional Tax Late Payment Penalty

As per the professional tax applicability in Jharkhand, every individual must pay the PT within the due date to avoid penalties. Authorities can impose a hefty penalty of Rs. 500 to Rs. 5,000 in case of late payment or non-payment of professional tax. Moreover, if you violate the professional tax payment guidelines continuously, you will need to pay a fine of Rs. 10 daily during that period.

Jharkhand Professional Tax Exemption

Individuals belonging to the following categories can enjoy professional tax exemption in Jharkhand:

• Individuals employed by the Union Ministry of Defence or Border Security Force (BSF), Union Ministry of Home Affairs.
• Senior citizen over the age of 65.
• Parents of children having severe disabilities.
• Individuals with permanent physical and mental disabilities.

Final Word

Now that you know about the payment process, payable amount, and due date of professional tax in Jharkhand, make sure you pay the tax on time. This tax is extended to all parts of Jharkhand. So, if you reside in this state partially or wholly, you must pay the professional tax as per your income slab.