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.
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.
Here’s the complete list of individuals to whom it is applicable:
Below is the table that represents the slab rate applicable as per the profession and income of taxpayers:
| 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 |
| 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 |
| 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 |
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:
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.
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.
Only members of the Armed Forces of the Union are exempted from paying it in Bihar.
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.
