Professional tax in Odisha

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

Professional tax is imposed by the government of individual states on the earnings of an individual. It is a kind of direct tax that is imposed on salaried individuals, self-employed individuals, business owners and professionals such as CAs, engineers, doctors, consultants etc. For salaried individuals, this tax amount is deducted from their income by the employers. The amount of tax charged on earning individuals varies from ₹ 125 to ₹ 300 based on the earnings.

Professional Tax Act Odisha

According to the Odisha Professional Tax 2000 on Professions, Trade, Calling and Employment those individuals who are salaried, self-employed, entrepreneurs or professionals are liable to pay professional tax. All employers are required to register themselves under this act as Professional Tax Deductors as they are liable to pay this tax on behalf of their employees. Moreover, self-employed individuals and entrepreneurs are required to pay this tax in Odisha.

Slab Rate of Professional Tax in Odisha

The amount of tax to be charged to an individual in Odisha depends upon their earning. Here is the complete table to get an overview of the slab rate:

Monthly Salary Payable Tax Amount
Upto ₹ 13,304 Nil
₹ 13,305 to ₹ 25,000 ₹ 125
₹ 25,000 and above ₹ 200 for each month except February, ₹300 for February

Professional tax for business owners, self-employed individuals and professional individuals is defined below:

Yearly Income Payable Tax Amount
Upto ₹ 1.6 Lakh Nil
₹ 1.6 Lakh to ₹ 3 Lakh ₹ 1,500
Above ₹3,00,000 ₹ 2,500

Applicability of Professional Tax in Odisha

This tax is also imposed on organizations, HUFs and clubs. Let’s understand the applicability using some key pointers:

  • Self-employed individuals and business owners in Odisha are required to deduct the professional tax from the salaries of their employees and submit to the state government on their behalf
  • Those entities or businesses which are registered under the GST Act in Odisha are required to register themselves under the Professional Tax Act and submit an amount of ₹ 2,500
  • Other professionals including engineers doctors, consultants or CAs are required to pay this tax themselves on an annual basis

How to pay Professional Tax in Odisha?

To pay professional tax in Odisha an individual has to follow certain steps. Here is the series of steps an individual has to follow:

  • First of all an individual has to visit the official website of Odisha Financial Management System and choose the option of “E-payment”. This option would be available in the “Other E-Services Box”.
  • After that click on the “Commercial Taxes” available under “Online Challan Submission”
  • Provide all the necessary information required and select the “Type of Payment” and “Type of Deposit”
  • Then enter the “Identification Number of Depositor” in the relevant box
  • Click on “Next” and check if all the details are correct. Then choose the option of “Make Payment”
  • Select the mode of payment and make the payment. Then a receipt will appear on the screen. Make sure to save it for future references

Exemption of Professional Tax in Odisha

As per the Professional Tax Law Odisha members of the Armed Forces and Navy are exempted from paying this tax in Odisha.

Professional Tax Payment Due Date Odisha

The last date of payment of tax varies in two cases. If an individual registers himself under Professional Tax Act before 31 May the last date of payment will be June 30. However, if an individual registers after May 31 are required to pay the this tax within one month.

Penalty on Late Payment of Professional Tax

If an individual fails to pay the tax on time in Odisha they will be liable to pay a 2% penalty on the outstanding amount. If an individual fails to justify the reason for late payment of professional tax then they are liable to pay a penalty of 25% to 50% of the total amount due along with the interest charges applicable.

FAQs (Frequently Asked Questions)

Yes, like other states this tax is compulsory in Odisha for earning individuals. Those individuals who are earning monthly income of more than ₹ 13,305 are eligible to pay in Odisha. 

The minimum amount of tax an individual has to pay in Odisha is ₹ 125 and this amount is paid on monthly salary less than ₹ 25,000

Those individuals who are members of Navy/Army are exempted from paying professional tax in Odisha.

An individual in Odisha can pay through the official portal of Odisha government.

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