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

Individuals who have joined a job or started a new business in Jharkhand must know about professional tax payment. Professional tax is a tax that a State Government imposes on individuals or organisations earning an income through any medium. This piece thoroughly discusses various aspects of professional tax in Jharkhand. Stay tuned!

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What Is Professional Tax in Jharkhand?

Jharkhand State Government levies a professional tax on an individual or body earning income through trades, callings, professions and employment.

The Jharkhand State Tax on Professions, Trades, Callings and Employment Act 2011 was implemented with the aim of imposing a tax on professions, employments, trades, and callings. This tax is applicable to the entire Jharkhand state.

Individuals can refer to the table mentioned below to learn about the professional tax rate in Jharkhand.

Salary (Yearly)	Professional Tax Amount Payable (Yearly)
Up to ₹ 3,00,000	Nil
From ₹ 3,00,001 to ₹ 5,00,000	₹ 1,200
From ₹ 5,00,001 to ₹ 8,00,000	₹ 1,800
From ₹ 8,00,001 to ₹ 10,00,000	₹ 2,100
Above ₹ 10,00,001	₹ 2,500

As individuals of Jharkhand are aware professional tax slab rate in Jharkhand as well as its definition, let’s focus on other important details.

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

The State Municipal Corporations are responsible for collecting P tax in Jharkhand.

This authority collects professional tax from the following individuals, who can be categorised as per their employment status,

Salaried Individual: Salaried individuals are liable to pay P tax in Jharkhand as per the applicable financial limit. Here, employers are obligated to deduct this salary from employees and pay it to the Jharkhand Government on their behalf.
Self-employed Individual: Self-employed individuals pay P tax in Jharkhand on their own to the respective authority.

How to Pay Professional Tax in Jharkhand?

Here is a step-by-step guide to paying P tax in Jharkhand,

Step 1 - Visit the official website of the Commercial Tax Department, Jharkhand.
Step 2 - Login to the website with credentials. A new webpage will open. Click on ‘Payment’ from the left dialogue box. Next, click on ‘JPT Payment (From April 2017 Onwards)’.
Step 3 - Provide essential information such as dealer type, address details, payment details, liability details, purpose details. Enter captcha code and click on ‘Make Payment’.
Step 4 - Taxpayers of Jharkhand will be redirected to the e-GRAS website. Here, they can view ‘Payment Details’ from which they need to select ‘Online Payment’ and click on ‘Submit’.
Step 5 - Choose a suitable payment gateway and again click on ‘Submit’.
Step 6 - After reviewing payee details, click on ‘Agree’ and Proceed to Payment, respectively. Next, follow the instructions and complete the payment.

When Is the Due Date for Professional Tax Payment in Jharkhand?

Assessees registered before 31st May of a year must pay P tax in Jharkhand (for each quarter) before 30th June of that year.

Assessees registered after 31st May are liable to pay P tax in Jharkhand (for each quarter) within one month of registration.

Other assessees must pay P tax in Jharkhand within 15 days of the month after the expiry of a quarter.

Assessees neglecting the guideline of the Jharkhand Profession Act may have to pay a hefty penalty, ranging from ₹ 500 to ₹ 5,000. In case of continuation of such offence, assessees have to pay ₹ 10 per day during such period.

Note: Assessee refers to an individual or employer who is liable to pay under this Jharkhand Professional Tax Act.

Who Are Exempt From Paying Professional Tax in Jharkhand?

Here is a list of individuals, who need not pay P tax in Jharkhand,

Individuals who have a permanent physical disability
Parents or guardians of a person with a physical disability or mental retardation
Individuals working with the Union Ministry of Home Affairs, Union Ministry of Defence or Border Security Force

Pay attention to the payment process of professional tax in Jharkhand and due dates so that you can avoid unnecessary expenses, i.e. penalty charges.

Frequently Asked Questions

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Do assessees pay a penalty charge if they delay obtaining the registration certificate?

Yes, assessees pay a penalty charge of ₹ 5 per day if they delay in obtaining a registration certificate.

Is professional tax registration in Jharkhand necessary for employers?

Yes, professional tax registration in Jharkhand is necessary for employers to deduct salary from employees and submit it to the State Government on behalf of them.

What documents are essential for professional tax registration in Jharkhand?

The documents essential for professional tax registration in Jharkhand include passport size photos, PAN Card, Memorandum Of Association, Articles Of Association, lease agreement, proof of employer’s address and ID proof.