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 the following:

• Professional Tax in Jharkhand
• Tax Rules governing Professional Tax in Jharkhand
• Insights on applicability of Professional Tax
• Professional Tax Slab Rates
• Enrollment Tax Slabs for people engaged in Business/Profession
• Forms Involved
• Online Payment of Professional Tax 
• Due Date for Payment
• Penalties involved in case of non-payment
• Applicable Exemptions
• Conclusion

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:

Enrollment Tax Slabs For Persons Engaged in Business or Profession.

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.