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