In India, the State Government levies a professional tax on the income of individuals. The tax slab or limits can vary from one state to another. Further, earning individuals of certain states need not pay this tax do not have as not all states levy professional tax.
In this piece, we will discuss professional tax in Bihar. Read on to know various aspects of professional tax in Bihar.
Professional tax is a direct tax on all kinds of professions, trades, callings and employment and the State Government of Bihar levies it on the basis of such profession, trade, callings and employment.
Any person earning an income for living from salary or involved in professions such as lawyers, chartered accountants and doctors must pay professional tax in Bihar.
The Bihar State Tax on Professions, Trades, Callings and Employment Act, 2011, came into effect with the aim of imposing a tax on professions, trades, callings, and employments. The act extends to the entire state of Bihar.
|
Class of Taxpayer |
Payable Amount (Annually) |
|
Tax on wages or salary on earning individuals whose annual income do not exceed ₹ 3 lakhs |
Nil |
|
Tax on wages or salary on earning individuals whose annual income fall within the range of ₹ 3 lakhs and ₹ 5 lakhs |
₹ 1,000 |
|
Tax on wages or salary on earning individuals whose annual income fall within the range of ₹ 5 lakhs and ₹ 10 lakhs |
₹ 2,000 |
|
Tax on wages or salary on earning individuals whose annual income is over ₹ 10 lakhs |
₹ 2,500 |
|
Dealers registered under the Bihar Value Added Tax Act, 2005 or only under the Central Sales Tax Act, 1956 with an annual turnover of purchases or sales of more than ₹ 10 lakhs |
Nil |
|
Dealers registered under the Bihar Value Added Tax Act, 2005 or only under the Central Sales Tax Act, 1956 with an annual turnover of purchases or sales of more than ₹ 10 lakhs, but does not exceed ₹ 20 lakhs |
₹ 1,000 |
|
Dealers registered under the Bihar Value Added Tax Act, 2005 or only under the Central Sales Tax Act, 1956 with an annual turnover of purchases or sales exceeding ₹ 20 lakhs, but does not exceed ₹ 40 lakhs |
₹ 2,000 |
|
Dealers registered under the Bihar Value Added Tax Act, 2005 or only under the Central Sales Tax Act, 1956 with an annual turnover of purchases or sales over ₹ 40 lakhs annually |
₹ 2,500 |
|
Individuals with Permits for Transport Vehicles issued under the Motor Vehicles Act, 1988, which are used or adapted to be used for hire or reward, where any such person holds permit or permits for any taxi or similar passenger vehicles |
₹ 1,000 |
|
Individuals with Permits for Transport Vehicles issued under the Motor Vehicles Act, 1988, which are used or adapted to be used for hire or reward, where any such person holds a permit or permits for any buses or trucks. |
₹ 1,500 |
|
Companies enrolled under the Companies Act, 1956 and involved in any profession, trade or calling. |
₹ 2,500 |
The Commercial Taxes Department under the Bihar Government is responsible for collecting professional tax within the state.
Now that individuals know about the authorities empowered with the task of collecting the P tax, let's learn about in detail persons accountable for paying the same.
As per the definition of professional tax, individuals involved in any profession, trade, calling or employment in Bihar must pay professional tax as per the income threshold. Following this definition, individuals can be segregated into two categories as per their employment status. These are,
To make an online payment of P tax in Bihar, follow the steps mentioned below.
The due date of professional tax payment in Bihar is 15th November every year. One should make the payment on or before the said date.
In case of defaults of payment within the stipulated time, the Tax Assessee authority charges a penalty of not more than ₹ 100 for each month of delay.
Note: Any persons notwithstanding the rules mentioned in the Bihar PT Act will have to pay an amount not exceeding ₹ 500. In case of continued violation, a concerned person has to pay not more than ₹ 10 each day of such violation.
Members of the armed forces of the Union serving in any part of Bihar need not pay professional tax in Bihar.
Attentively read the process of paying professional tax in Bihar and complete the task without any error!
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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