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

Updated on: May 23rd, 2024

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10 min read

States in India, including Odisha, levy a professional tax (PT) in accordance with Article 276 of the Indian Constitution. Professional tax in Odisha is a direct tax that applies to businesses, salaried individuals, entrepreneurs and professionals in various occupations. Even though only a small amount is deducted, professional taxpayers in Odisha need to be well-versed in the subject. Continue reading to learn more about professional tax payments in Odisha. 

Professional Tax in Odisha

The Odisha Professional Act Tax, 2000, governs the provisions of professional tax in Odisha. The Commercial Taxes Department of the Odisha government is in charge of collecting this tax. The state can levy professional tax with a minimum value of Rs 125 per month and a maximum of Rs.300 per month.

Odisha Professional Tax Act

Odisha state tax on Professions, Trades, Callings and Employment Act, 2000, came into effect intending to levy tax on individuals associated with various professions, trades, callings and employment. Every employer in Odisha needs to register under this act as a Professional Tax Deductor. Additionally, every self-employed professional needs to register themselves if they are liable to pay professional tax.

Professional Tax Applicability in Odisha

Apart from employed and self-employed individuals, this tax is applicable to companies, firms, LLPs, corporations, HUFs, clubs, etc. Take a look at the points below to understand professional tax applicability in Odisha: 

  • Entities registered under GST Act in Odisha are required to enroll themselves under the Professional Tax Act and pay an amount of Rs 2500 annually.
  • Business entities in Odisha are required to deduct PT from their employees every month at the applicable rates. Then, they have to deposit the amount to the Head of account of the state government of Odisha through the state treasury. 
  • Other professionals like medical consultants, radiologists, pathologists, etc., and individuals engaged in other similar professions are obligated to enroll under this act and are required to pay the applicable taxes annually.

Documents Required for Registration

  • Memorandum Of Association and Articles Of Association
  • PAN Card
  • Lease Agreement
  • S&E Certificate / Trade License Copy
  • Employer Address Proof and ID Proof
  • Email address and Phone Number
  • Bank Details with Cancel Cheque
  • List of employees with Gross Salary

Professional Tax Slab Rate in Odisha

The professional tax imposition depends on the income of earning individuals. Check the table below to find out the professional tax slab rate in Odisha:

Annual Gross Salary

Professional tax amount

Less than Rs 1,60,000

Nil

Between Rs 1,60,000 and Rs.3,00,000

Rs 125 per month

Above Rs.3,00,000

Rs. 200/- per month for first 11 months and Rs. 300/- for the last month

On the other hand, for professionals like Medical Consultants, legal practitioners, estate agents, brokers, technical and professional consultants, etc., where the annual gross income comes into the picture, the tax slab rate is mentioned below:

Annual Income

Professional tax amount

Rs.1.6 Lakh

Nil

Rs.1.6 Lakh to Rs.3 Lakh

Rs.1,500 per annum

Above Rs.3 Lakh

Rs.2,500 per annum

Odisha Professional Tax Online Payment

If you are wondering how to make professional tax payments online, you can follow these simple steps.

  • Visit the official website of Integrated Financial Management system-Odisha and select the 'e-payment' option. This option would be available in the 'Other e-Services' box. 
  • Payment can be made using the PT registration / Enrollment Number or the GSTIN by the Taxpayer.
  • Once redirected, click on ‘Commercial Tax’ from the options available under ‘Online Challan Submission’.
  • Under the ‘Professional Tax’ box, provide the essential details and enter ‘Payment Type’ and ‘Deposit Type’. 
  • Click on 'Next' and enter 'Depositor Details' and 'Identification of Depositor' in the relevant boxes.
  • Click ‘Next’ and confirm the details. After verification, you can view the 'Make Payment' webpage. 
  • Select the suitable payment gateway. Now, select 'Proceed Payment' and click on the 'Pay' option. 
  • Professional Tax can be paid online through the Odisha Treasury Portal using Net Banking, UPI, Credit / Debit Cards and through SBI e-Pay.

Odisha Professional Tax (Enrollment) Payment Due Date

For those who enroll before May 31 of a financial year, the professional tax due date is June 30. Simultaneously, people who enrol after May 31 are required to pay professional tax within one month of enrolment.

Odisha Professional Tax Payment Due Date

Employer shall furnish a return in Form-V before the end of the succeeding month disclosing all the tax deductions made during the month from his employees salary. It is challan-cum-statement Form.

Odisha Professional Tax Late Payment Penalty

Not paying professional tax or deducting it from an employee’s wages will lead to the payment of simple interest of 2% on the due amount or a portion of the remaining unpaid tax period. Additionally, in Odisha, failure to pay professional tax without a valid reason could result in a penalty of 25% to 50% of the total due amount with interest charges.

Odisha Professional Tax Exemption

According to the statute, members of the armed forces of the Union serving in any region of Odisha are exempt from paying professional tax. 

Final Word

If you are liable to pay professional tax in Odisha, make sure to follow the simple steps mentioned above to pay the tax on time. Once you know your applicable tax slab rate, you can make payment effectively to avoid any hefty penalty charges.

Frequently Asked Questions

Is professional tax compulsory in Odisha?

Yes, payment of professional tax is compulsory in most states in India including Odisha. If you are a salaried individual in Odisha earning above Rs.13,305, you are liable to pay this tax. 

How much is a professional tax in Odisha?

The rate may vary depending on your income. For instance, if you earn above Rs.25,000 you are liable to pay Rs.200. On the other hand, if you earn below Rs.25,000 you are required to pay Rs.125. 

Who is eligible for professional tax in Odisha?

Every salaried and self-employed individual earning a specific amount is eligible for professional tax in this state. However, every individual should register under the Professional Tax Act 2000 and also need to file a tax return. 

Who is exempt from professional tax in Odisha?

Members of the armed forces serving in any part of Odisha do not require to pay professional tax within the state. 

How to pay professional tax in Odisha?

Business entities/organisations/employers in Odisha deduct the professional taxes of their employees from their monthly salaries. If you are a self-employed individual, you can pay it online through the official website of the Integrated Financial Management System-Odisha. All you need to do is follow the steps accordingly and make the payment online.

What is the Annual return of professional tax?

If you are a professional who is registered under the professional tax act, every year you are recommended to file an annual return in Form 5. 

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Quick Summary

Odisha levies professional tax on businesses, salaried individuals, and professionals according to the Odisha Professional Tax Act, 2000. Employers and self-employed professionals must register under this act. Various entities, including those registered under GST, are subject to professional tax in Odisha. Tax rates are based on income levels. Online payments are facilitated through the Odisha Treasury Portal. Late payments incur penalties and exemptions exist.

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