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

By Sujaini Biswas

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Updated on: May 22nd, 2024

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16 min read

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's applicability, payment process, due date, exemption, etc., in Jharkhand.

Professional Tax in Jharkhand

If you are holding a job or associated with a business in Jharkhand, the state government will impose a professional tax on your income. Every state in India levies a professional tax on individuals earning a minimum of Rs 3,00,000 per annum. 

Professional tax in Jharkhand is collected by the State Municipal Corporation as per the income slab of an individual. Moreover, you can claim the payable amount as a deduction under Section 16 of the Income Tax Act.

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. Under this, every earning individual in Jharkhand, irrespective of their source of income, is liable to pay professional tax. Self-employed professionals, doctors, CAs, architects, etc., must pay this tax. 

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:

Annual Income

Professional Tax Amount

Upto 300000

Nil

Between 300001 To 500000

₹ 1200.00

Between 500001 To 800000

₹ 1800.00

Between 800001 To 1000000

₹ 2100.00

Above 1000001

₹ 2500.00

Enrollment Tax Slabs For Persons Engaged in Business or Profession.

Business/ Profession

Category

Amount

Legal practitioners, Professional Consultants standing in the profession

< 3 years - NIL, < 7 years - Rs.1000 and > 7 years

Rs.2500

Contractors falling in the categories of registration of contractors

Class I Contractors-

Rs.2500

Class II Contractors

Rs.2000

Class III Contractors

Rs.1000

Contractors not falling above and value of the contract executed by them is

less than Rs.10 lakhs 

Rs 1500

more than Rs.10 lakhs

Rs 2500

Persons registered under Jharkhand VAT law, with an annual turnover 

          < Rs.5 lakhs 

Nil

< Rs.10 lakhs

Rs.1000

< Rs.25 lakhs

Rs.1500

< Rs.40 lakhs

Rs. 2000

> Rs.40 lakhs 

Rs.2500.

 

Persons not liable to Jharkhand VAT registration

 

< Rs.3 lakhs

Nil

< Rs.10 lakhs

Rs.1000

< Rs.25 lakhs

Rs.1500

< Rs.40 lakhs 

Rs.2000 

> Rs.40 lakhs 

Rs.2500

Click here to learn further the type of business/professions 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:

  • Log in to the official website of the Jharkhand Commercial Tax Department by entering your credentials.
  • You will find a new webpage with a dialogue box on the left side of the page.
  • Select ‘Payment’ in that box and click on ‘JPT Payment’.
  • Enter the required information, including address, dealer type, payment details, purpose, liability details, etc.
  • Fill out the CAPTCHA code in the required box and click on ‘Make Payment’.
  • You will be redirected to the e-GRAS website.
  • View 'Payment Details' and select the 'Online Payment' option.
  • Click on ‘Submit’ and select a convenient payment gateway.
  • Click on ‘Agree’ after reviewing the payee details and click on ‘Proceed to Payment’.
  • 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 5000 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, Union Ministry of Home Affairs, etc.

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.

Frequently Asked Questions

Is professional tax compulsory in Jharkhand?

Professional tax is a mandatory tax levied on earning individuals in most states in India. All employed or self-employed individuals in Jharkhand are liable to pay professional tax.

How much is the professional tax in Jharkhand?

The professional tax in Jharkhand starts from Rs 1000 per annum and upto a maximum of Rs.2500. However, individuals with annual salary of less than Rs 3,00,000 are not liable to pay this tax.

Who is eligible for professional tax in Jharkhand?

Everyone earning income from a job or self-employment must pay professional tax in Jharkhand. Professionals associated with trade, calling, consultancy, etc., are liable to pay this tax. 

Who is exempt from professional tax in Jharkhand?

Members of the Armed Force or Border Securities, etc., are exempted from paying professional tax in Jharkhand. 

How to pay professional tax in Jharkhand?

You must professional tax in Jharkhand to the state’s Commercial Tax Department. Both online and offline modes are available for payment of professional tax. 

What are the documents required for professional tax registration in jharkhand?

List of documents required for registration

  • Three passport size photos
  • PAN Card
  • Memorandum Of Association
  • Articles Of Association
  • Lease Agreement
  • Employer Address Proof and ID Proof
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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