Bihar Professional Tax
In India, Professional Tax is a tax that is charged by state governments on individuals who work in either government or non-government jobs, as well as those employed in various professions such as lawyers, doctors, and chartered accountants. The rates of this tax vary from state to state, depending on the tax rules set by each government. When deducted from a salaried employee’s income, this tax is considered a professional tax deduction under Income Tax Act . This article examines the different facets related to the Bihar Professional Tax.
The Bihar Professional Tax Act of 2011.
The Bihar Government has set up the Commercial Taxes Department to oversee the collection of professional tax payments from working professionals within the state. According to the Bihar Professional Tax Act of 2011, anyone involved in business or a profession must pay a professional tax ranging from a minimum of Rs. 1000 to a maximum of Rs. 2500 annually.
Instructions for submitting Yearly Report
Every person who is enrolled under the Professional Tax Act is required to provide a monthly return (in Form VII) to the relevant assessing body. This return must detail the salaries that have been paid out and the total amount of tax that has been deducted from the wages.
To pay the full amount of tax, you can use a treasury challan, an authorized bank, or DD/Cheque/e-payment by the end of November each year. You must also file a return, which can be completed on the commercial taxes department’s official website.
Enrollment and Relevance
If the employer operates as a corporate company, partnership firm, or sole proprietorship, they must acquire a professional tax registration certificate to pay the professional tax on their business or profession. When it comes to employees, the employer is responsible for deducting and paying the professional tax to the State Government as per the law. Even individuals who pursue freelance businesses without employees need to register as per their state’s legislation.
Bihar Professional Tax Slab
The tax brackets for professional taxes in Bihar are defined by the Professions, Trades, Callings and Employments Act of 2011, and are presented below:
|S.No||Class of Taxpayers||Amount of Tax Payable|
|1.||Individuals who earn an income through salary or wages are required to pay taxes.
a) Individuals whose annual income is less than Rs. 3 Lakhs.
b) Individuals earning between Rs.3 Lakhs and Rs.5 Lakhs per year.
Individuals who earn over Rs. 500,000 but less than Rs. 1,000,000 annually.
d) Individuals who earn more than Rs. 10 Lakhs per year.
| Rs.2000/- per annum
Rs.2,500/- per annum
|2.||This refers to dealers who are registered either under the Bihar Value Added Tax Act of 2005 or under the Central Sales Tax Act of 1956, and whose sales or purchases have an annual turnover.
b) Do not exceed an annual income of Rs.10 lakhs.
b) Earn an annual income of over Rs. 10 Lakhs but less than Rs. 20 Lakhs.
c) Is more than Rs. 20 Lakhs annually but not more than Rs. 40 Lakhs annually.
d) Exceeds an annual income of Rs. 40 Lakhs.
| Rs.2000/- per annum
Rs.2,500/- per annum
|3.||Individuals with permits for transportation vehicles that allow for commercial use, granted under the Motor Vehicles Act of 1988, can hold multiple permits for the same purpose.
Any vehicle that is used for transporting passengers, such as a taxi or other similar vehicles.
b) Any truck or buses.
|Rs.1500/- per annum|
|4.||Businesses registered under the Companies Act of 1956 and involved in any occupation, commerce, or pursuit.||Rs.2,500/- per annum|
When applying for professional tax, you will need to provide certain documents which are necessary. These documents include:
- An application form.
- Two photographs that have the same size as a passport.
- The necessary information for conducting transactions, such as bank name, account numbers, and other relevant information can be found on a copy of the passbook or bank account statement.
- A duplicate of the PAN or TAN card belonging to the owner, partners, HUF (Hindu Undivided Family) member in charge or employer.
- Proof of identity from the applicant, such as a duplicate of their voter ID, Aadhar ID, driver’s license, or passport.
- Evidence of the applicant’s address, such as a photocopy of an electricity or telephone bill, driver’s license or passport.
To enroll for professional tax through the internet, adhere to the instructions given underneath:
office in person to submit the application form and required documents.official websiteThis paragraph is already in the English language. No paraphrasing is needed.
In the next page, choose the “tax category for professionals” option.
In order to proceed with registration, the user is presented with an online form that must be filled out completely and accurately. Additionally, it is necessary to upload any required documentation. Finally, the user must click the “Add” button to complete the process.
In step number 5, a window will appear on the screen and you need to select the “submit” button.
After completing the Professional Tax registration form, click on “OK” to submit it. An acknowledgment receipt will be created, which the applicant should print for future reference.
Please take note that as soon as the relevant office approves your registration, you will receive a notification via SMS and email.
Track Registration Status
In order to verify one’s registration status, they must choose the type of registration and insert the corresponding acknowledgment/application number.
The Bihar Government does not require individuals to pay any fees, such as application fees, processing fees, or security deposits, for the purpose of registering for Professional Tax.
Once you submit your application online, the responsible individual will provide you with a verified certified copy of your Professional Tax registration within fifteen days.
The officials who are in charge of providing a certified copy of the professional tax are the Deputy Commissioner, Assistant Commissioner, and Commercial Tax Officer.
If a tax return is not filed on time or is filed with errors, a penalty fee may be charged. This penalty fee is calculated based on the amount of tax owed and the length of the delay in filing the return. It is important to file tax returns accurately and on time to avoid penalty fees.
In case a person who owes taxes does not pay them within a given timeframe, a penalty of two percent of the tax owed may be added for every month of delay by the authority responsible for assessing taxes.
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