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Regular-article-logo Monday, 08 September 2025

Tax for professionals

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SANJEEV KUMAR VERMA Published 31.08.11, 12:00 AM

Patna, Aug. 30: If you are a salaried individual with an annual income of more than Rs 3 lakh, your September salary packet would be a bit thinner.

The commercial taxes department would collect professional tax from salaried individuals in September. The deduction would be made at source by the employer concerned.

The cabinet today paved the way for collecting professional tax by approving the rules for implementing the Bihar Tax on Professionals, Trade, Callings and Employment Act, 2011.

Salaried persons apart, self-employed people like businessmen and professionals too would come under the ambit of the act, the only difference being that they would have to register themselves with the commercial taxes department for paying the levy.

The act came into effect on May 26 this year but its implementation was awaited as the rules had not been framed.

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 per year would have to pay Rs 1,000 per annum as 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.

The decisions were announced by principal secretary, cabinet co-ordination department, Ravi Kant.

Commercial taxes secretary Rajit Punhani said letters would be sent to employers for getting themselves registered with the department and start the process of professional tax deduction at source.

In case of professionals, businessmen and other self-employed people, the department would glean income details from the database to ensure that all those falling under the taxable slab pay professional tax in the current fiscal.

According to government estimates, the state exchequer would receive about Rs 75 crore through imposition of professional tax.

Professional tax is not a new levy and was earlier supposed to be collected by urban local bodies. Given the poor performance of these bodies in collecting the tax, the government came up with a new act, which got legislative approval in March and was notified in May.

Those failing to pay professional tax in time would have to pay a sum of Rs 5,000 or double the amount of the tax liability, whichever is higher.

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