Patna, Jan. 7: The commercial taxes department has raised Rs 26 crore in professional tax till the end of last November despite the government facing sharp criticism from various quarters for the move.

“We have collected Rs 26 crore in professional tax till the end of November last year. But individuals can deposit their tax till February,” commercial taxes department commissioner Rajit Punhani told The Telegraph.

Asked about the compliance rate, Punhani said government employees and officers have shown good response, while majority of people working in the private sector or self-employed or professionals have not complied with the rule of depositing the sum by November, the deadline for professionals. But a provision in the Professional Tax Act allows people to pay the tax till February.

Replying to a query as to what step the department is contemplating to mop up the tax collection, the commissioner said: “We will wait till February and appeal to people to deposit the tax. But after that, the department would send notices to every defaulter.”

When asked, Punhani refused to give details about the number of people who have deposited professional tax so far. Those failing to pay the tax in time would have to pay a sum of Rs 5,000 or double the amount of tax liability, whichever is higher. According to government estimate, the state exchequer would receive about Rs 75 crore through imposition of professional tax.

On August 30, the state cabinet had given nod to the collection of professional tax by approving the rules implementing the Bihar Tax on Professionals, Trade, Callings and Employment Act, 2011. The department started collecting the tax from September from salaried individuals. The employer concerned would deduct the tax at source.

Any government or private sector employee that includes professionals (doctors, teachers, engineers, journalists, lawyers and others), businessmen, traders, and other self-employed people would have to pay professional tax once a year.

According to the act, those with an annual income up to Rs 3 lakh would not be liable to pay any professional tax. Those earning between Rs 3 lakh and Rs 5 lakh yearly would have to pay Rs 1,000 as annual professional tax. In case one’s annual income falls between Rs 5 lakh and 10 lakh, the tax amount would be Rs 2,000 per annum. Those with an annual income of over Rs 10 lakh would have to cough up Rs 2,500 per annum.