Professional tax in Bihar

Get the latest information about professional tax applicable in Bihar for the individuals based on their profession and income level.

According to Section 16 (111) of the Income Tax Act of 1961, every Indian state has the right to impose a professional tax on citizens who have a stable income. This whole article will help you to have a clear understanding.

The minimum income of an individual should be at least ₹ 3,00,000 per annum to be eligible for professional tax.

The state government of Bihar imposes a certain direct tax on every earning individual. Whether salaried or self-employed every individual is required to pay professional tax.

Professional Tax Act Bihar

As per Bihar state tax it is mandatory for every individual income holder. However, as per the act, an individual has to pay varied taxes from ₹ 1,000 to ₹ 2,500 depending on the income level.

Applicability of Professional Tax in Bihar

Here’s the complete list of individuals to whom it is applicable:

  • Individuals who are earning salaries or wages
  • Any transporter who holds a valid permit
  • Those individuals who are engaged in trade
  • Companies which are registered in Bihar

Applicable professional tax slab rate in Bihar

Below is the table that represents the slab rate applicable as per the profession and income of taxpayers:

Tax slab rate for salaried individuals

Salary Range Payable Tax Amount Per Annum
Salary less than ₹ 3,00,000 per annum Nil
Between ₹ 3,00,000 and ₹ 5,00,000 ₹ 1,000
Between Rs. 5,00,000 and ₹ 10,00,000 ₹ 2,000
Above ₹10,00,000 ₹ 2,500

Tax slab rate for dealers

Annual Turnover Payable Tax Amount Per Annum
Annual turnover less than ₹ 10,00,000 Nil
Between ₹ 10,00,000 and ₹ 20,00,000 ₹ 1,000
Between ₹ 20,00,000 and ₹ 40,00,000 ₹ 2,000
Above ₹40,00,000 ₹ 2,500

Tax slab rate for individuals renting vehicles

Types of Vehicles Rented Payable Tax Amount Per Annum
Individuals renting their taxis or passenger vehicle with Permits for Transport Vehicles ₹ 1,000
Individuals renting their buses or trucks with Permits for Transport Vehicles ₹ 1,500

How to pay professional tax in Bihar?

In Bihar it can be paid through treasury challan or authorized bank cheque. An individual can also make payment through an online portal by following certain steps:

  • Firstly an individual has to visit the official website of Bihar’s Commercial Taxes Department
  • Navigate through the home page
  • You are required to click on “E-registration” and fill out the necessary details
  • Taxpayer has to revisit the page after completing the registration process
  • You have to opt for “E-Services” and click the “E-payment option”
  • Fill out the Login ID, password, and state code and complete the captcha
  • Click on Login Now
  • Once you are logged in navigate to e-payment on the left side of the page
  • Select the option of “Professional Tax Payment”
  • Select type of payment, financial year, tax period and payment mode
  • Enter the amount of tax payable after checking all the details
  • Click on “Submit” to complete your payment
  • You will get a payment receipt in downloadable form

Bihar Professional Tax Due Date

Once you get the details of the professional tax to be paid, you must ensure that it is paid on time. Every taxpayer has to pay it by November 15. You must follow the above-mentioned steps to pay professional tax and avoid any kind of penalty. 

Late Payment Penalty of Professional Tax in Bihar

As per the Tax Authority of Assesse, an individual has to pay a late payment penalty of ₹ 100 per month. If an individual is found to violate the Bihar Professional Tax Rule, they are liable to pay a fine of ₹ 500. An individual has to pay a daily penalty of Rs 10 for continuous violations.

Exemption in Professional Tax

Only members of the Armed Forces of the Union are exempted from paying it in Bihar.

FAQs (Frequently Asked Questions)

Yes, like other states professional tax is compulsory in Bihar for earning individuals. Moreover business owners and salaried individuals are required to pay it.

Professional tax in Bihar varies from ₹ 1,000 to ₹ 2,500 for an individual based on their income and profession. It is applicable for salaried employees earning salary of more than ₹ 3,00,000.

Every individual whether business owner, salaried employee is eligible to pay professional tax in Bihar. Individuals who provide professional services like doctors, consultants, CAs are required to pay professional tax.

An individual can pay professional tax in Bihar using treasury bill or using online portal of Bihar government. To pay professional tax online an individual can follow above-mentioned steps.

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