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Understanding Professional Tax in Bihar: Tax Slab, Due Date, Penalty, Exemption

Introduction

In India, the state government imposes professional tax on those people who are earning income from employment. If we talk about tax slabs, it may vary from one state to another. Apart from this, there are some states which do not impose professional tax on the individuals of their state. In this article we will discuss in detail professional tax registration in Bihar.

Professional Tax in Bihar

Professional tax is a direct tax imposed on all types of professions, trades and employment. In the state of Bihar, basically this tax is imposed on the basis of business, livelihood and employment only. Any person who earns living income from salary irrespective of his profession like lawyer, chartered accountant and doctor etc. has to compulsorily pay professional tax in Bihar. Bihar State Tax Act 2011 has basically been implemented to impose tax on business, trade and livelihood. This Act extends to the entire state of Bihar.

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Professional Tax Slab Rate in Bihar

Class of Taxpayer Payable Amount (Annually)
Salaried individuals whose annual income is less than Rs 3 lakh Nil
Salaried individuals whose annual income is between Rs 3 lakh to Rs 5 lakh ₹ 1,000
Salaried individuals whose annual income is between Rs 5 lakh to Rs 10 lakh ₹ 2,000
Salaried individuals whose annual income is more than Rs 10 lakh ₹ 2,500
Dealers whose annual turnover is less than Rs 10 lakh Nil
Dealers whose annual turnover is between Rs 10 lakh to Rs 20 lakh ₹ 1,000
Dealers whose annual turnover is between Rs 20 lakh to Rs 40 lakh ₹ 2,000
Dealers whose annual turnover is more than Rs 40 lakh ₹ 2,500
Individuals renting their own taxis or passenger vehicle with Permits for Transport Vehicles ₹ 1,000
Persons having permits for transport vehicles are renting their own buses or trucks ₹ 1,500
Companies which are basically engaged in trading, calling and other professions with enrollment under the Companies Act 1956 ₹ 2,500

 

Bihar Professional Tax Payment Due Date

Once you know the exact amount due and the process of filing returns, it is essential to ensure that you pay tax on time. In Bihar, you will have to pay the professional tax deducted in the month of September basically by 15th November. If you want to avoid a penalty, you must file your return on or before November 15.

Penalty for Late Payment of Professional Tax in Bihar

If you pay professional tax late for any reason, you will have to pay a mandatory penalty of ₹100 per month, according to the assessing authority of Bihar. However, if you are found violating Bihar Professional Tax Rules, then in this situation the officer can impose a maximum fine of ₹ 500 on you. Repeated violations of the Professional Tax Act may also result in a daily penalty of ₹10.

Persons who are Exempted from Paying Professional Tax in Bihar

In Bihar, those who are members of the armed forces of the Union are basically exempted from paying professional tax.

Conclusion

You should pay professional tax in Bihar as per your income slab. Being a responsible person, you should completely follow the rules made by your state government. However, if you fail to pay professional tax on time, then in such a situation you may also have to pay a penalty. In this article we have told you in detail about professional tax in Bihar.

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