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

    professional tax in odisha
    Source: caknowledge.com

    Odisha is one of the Indian states which follows the rules regarding the imposition of professional tax within the state.

    Several State Governments of India levy professional tax on the earnings of individuals and use the accumulated money for providing better infrastructure. The slab rates may vary from one state to another. For instance, the professional tax rate in Odisha may be different from West Bengal. Though the deducted amount is small, individuals who are paying professional tax in Odisha must have comprehensive knowledge regarding the same.

    So, read on to know everything about P tax in Odisha!

    What Is Professional Tax in Odisha?

    The State Government of Odisha levies a professional tax on all individuals earning through any medium such as trade, calling, employment, or professional. The Orissa State Tax on Professions, Trades, Callings and Employments Act, 2000, looks into the intricacies of this tax within the State.

    The imposition of the P tax in Odisha depends on the income of earning individuals. Following is given the professional tax slab in Odisha. Take a look!

    Monthly Salary

    Professional Tax Amount Payable In Odisha

    Up to ₹ 13,304

    Nil

    Up to ₹ 13,305 to ₹ 25,000

    ₹ 125

    ₹ 25,001 and above

    ₹ 200 for each month except February and ₹ 300 for the month of February

    With a clear understanding of the professional tax slab in Odisha, we can now shift to other important details. Read along!

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

    The Commercial Taxes Department, which is regulated under the Odisha State Government, is responsible for collecting P tax within the State.

    Article 276 of the Indian Constitution endows the State Governments to levy and collect a tax on professions, trades, callings and employments in accordance with provisions of this Act.

    Collection of P tax in Odisha can be done from particularly two categories of individuals (as per the employment status). These are,

    • Salaried Individual: Salaried individuals must P tax in Odisha. Here, employers deduct this amount from the salaries or wages of employees and deposit it to the respective authority on behalf of them. If employers have paid salary or wage to employees, then depositing professional tax becomes mandatory whether they have deducted the amount or not.
    • Self-employed Individual: Self-employed individuals must deposit P tax in Odisha themselves to the persons particularly appointed for this task.

    Therefore, it is clear that professional tax is applicable to both salaried and self-employed individuals. Further, it includes a Hindu Undivided Family (HUF), Club or Association, Corporation or other Corporate body, any Society, firm, Company, but does not include any individual who earns wages on a casual basis.

    After knowing about the P tax slab rates in Odisha and the department or people responsible for collecting and paying the same, the next important thing to know is the P tax payment process in Odisha. So, read along!

    How to Pay Professional Tax in Odisha?

    Follow the steps mentioned below to pay professional tax in Odisha online,

    • Step 1 - Visit the official website of Integrated Financial Management System-Odisha.
    • Step 2 - From the 'Other e-Services' box available on the right side of the webpage, select 'e-Payment'. 
    • Step 3 - A new webpage will open. Click on 'Commercial Tax' from the options available under 'Online Challan Submission'. Next, check the box featuring 'professional tax' and provide essential details in relevant boxes under the heading 'Dealer Details' and enter 'payment type' and 'deposit type'. 
    • Step 4 - Click on 'Next'. Now enter 'Depositor Details' and 'Depositor's Identification' in relevant boxes.
    • Step 5 - Click on 'Next'. Professional taxpayers of Odisha have to confirm the details they have provided till now. 
    • Step 6 - Once verification is done, they can view the 'Make Payment' webpage and important details such as Challan Reference Number payable amount. Select a suitable payment gateway, accept terms and conditions and click on 'Proceed to Payment'. Information regarding the depositor's name and the amount will appear on the screen. Click on 'Pay'. 

    Professional taxpayers of Odisha can reprint challan from the website mentioned above and click on the 'Reprint Challan' link.

    Now that individuals know how to deposit professional tax in Odisha, they must learn about the due date of P tax payment, penalty, and exemptions available; read on.

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

    Individuals who have enrolled on or before 31st May of a financial year must pay P tax in Odisha before 30th June in that financial year.

    On the other hand, individuals who have enrolled after 31st May must pay P tax in Odisha within one month from the enrolment date.

    Failure to deduct or pay professional tax may incur a simple interest of 2% (each month) of the tax due amount or part of the remaining unpaid tax period.

    In addition, non-payment of P tax in Odisha without any reasonable cause may lead to a penalty ranging from 25% to 50% of the total due amount and along with interest charges.

    Who Are Exempt From Paying Professional Tax in Odisha?

    Members of the armed forces of the Union serving in any part of Odisha need not pay P tax within the State.

    Note: The State Government may exempt some class of individuals in special cases.

    At this stage, we have reached the end of this piece talking about professional tax in Odisha. Thus, by following the steps mentioned above, paying P tax in Odisha will not be an issue anymore.

    Frequently Asked Questions

    Is registration mandatory for employers in Odisha?

    Yes, registration is mandatory for all employers in Odisha to deduct tax from their employers under Section 5.

    Yes, registration is mandatory for all employers in Odisha to deduct tax from their employers under Section 5.

    Do individuals have to submit a return to the assessing authority?

    Yes, all individuals registered under the Professional Tax Act 2000 have to submit a return in form V along with a treasury challan or a banker's cheque or manager's cheque.

    Yes, all individuals registered under the Professional Tax Act 2000 have to submit a return in form V along with a treasury challan or a banker's cheque or manager's cheque.

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    Important Articles about Professional Tax in India

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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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    4. Professional Tax in Odisha

    Last updated: 2023-12-05

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