Professional Tax in Bihar: Tax Rates, Payment Process & Due Date

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.

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What Is 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.

Take a glance at the below-mentioned table and learn about the tax slabs in 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

From the above-mentioned table, one can easily understand the tax slab they fall under, thus deciding the payable professional tax amount annually. In the following sections, we will focus on other important details regarding P Tax in Bihar; read on.

Who Is Responsible for Collecting and Paying Professional Tax in Bihar?

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,

Salaried Individual:For individuals earning salary or wages, the employer will deduct from the payable salary or wages and pay it to the State Government of Bihar on behalf of employees.
Self-employed Individual: Self-employed individuals are liable to pay P tax in Bihar. Here, they have to pay it directly to the Bihar Government.

How to Make Online Payment of Professional Tax in Bihar?

To make an online payment of P tax in Bihar, follow the steps mentioned below.

Step 1 - Visit the official website of the Commercial Taxes Department, Government of Bihar and navigate to the Home page.
Step 2 - From ‘e-Services’ featured on the rightmost corner, select ‘e-Registration’. Once the registration process is completed, move to the Home page again.
Step 3 - Next, click on ‘e-Payment’ from the ‘e-Services’ box and provide login ID (PAN) with State Code as prefix, password and captcha. Next, click on ‘Login’.
Step 4 - On the following page, click on Professional Tax Payment from the ‘e-Payments’ box featured on the leftmost side of the webpage.
Step 5 - Now, taxpayers can view a form filled with information. Modify or add as per requirement. Next, select Payment type, financial year, Tax period, Payment by, check a box on Payment on Account ID and enter the payable amount.
Step 6 - Click on ‘Submit’ and complete the online payment of professional tax in Bihar. Download payment receipt for future reference.

When Is the Due Date for Paying Professional Tax in Bihar?

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.

Who Are Exempt from Paying Professional Tax in Bihar?

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!

Frequently Asked Questions

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What documents must one furnish during the online registration of professional tax in Bihar?

One must furnish a list of documents during the professional tax registration process. These are, Memorandum Of Association, Articles Of Association, employer address proof and ID proof and photos, employee list with salary details, PAN Card, lease agreement, ID and address proof of proprietor or organisation, bank account details, name and activities of the firm or organisation.

Does a freelancer need to pay professional tax in Bihar?

Yes, a freelancer needs to pay professional tax in Bihar.