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

Introduction

According to Article 276 of the Indian Constitution, states in India including Odisha basically levy Professional tax. Professional tax in Odisha is a direct tax basically imposed on salaried individuals, entrepreneurs and various types of businesses. Even if a small amount is deducted, it is very important for professional taxpayers in Odisha to have complete information about it. In this article we will tell you in detail about professional tax registration in Odisha.

Professional Tax in Odisha

Whatever individuals earn through business, calling or employment, the Odisha state government basically imposes professional tax on them. The Odisha State Tax on Profession, Trade, Livelihood and Employment Act, 2000, looks into the complexities of this tax within the state.

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Professional Tax Slab Rate in Odisha

Professional taxes in Odisha are basically based on the earnings of individuals. Following are the tax slabs for professional taxes in Odisha:

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

Odisha Professional Tax Payment Due Date

For those who enroll before May 31 of the financial year, the professional tax due date is June 30. However those who enroll after 31st May are required to pay professional tax within one month of enrolment.

Penalty for Late Payment of Professional Tax in Odisha

Not paying professional tax or deducting it from an employee’s wages will lead to the payment of simple interest of 2% on the due amount or a portion of the remaining unpaid tax period. Additionally, in Odisha, failure to pay professional tax without a valid reason could result in a penalty of 25% to 50% of the total due amount with interest charges.

Persons who are Exempted from Paying Professional Tax in Odisha

There are also some persons in Odisha who are exempted from paying professional tax, such as members of the armed forces of the Union serving in any field.

Conclusion

If you reside in Odisha and are liable to pay professional tax then you have to pay the tax on time otherwise you may face a heavy penalty. When you are fully aware of your slab rate, you can pay tax effectively to avoid any penalty.

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