Updated on June 19, 2025 02:53:21 PM
The Bihar professional tax registration is controlled under section 3 of the Bihar Tax on Professions, Trades, Callings & Employments Act, 2011. This tax is levied on individuals and other legal persons that engage in one profession, trade, calling, business, employment or vocation in the state. They extend to those who have fixed income earners like civil servants, employees from companies or firms, self-employed, independent contractors, entrepreneurs and experts like physicians, lawyers, and certified public accountants. This tax is one of the major sources of own revenues for the state to finance local centers and constructions, services and development projects.
Registration process involves some of the state regulation that has to be met by the individuals as well as the businesses, this assists in ensuring legal compliance and will cost a lot of money. Registrations are to be done through Bihar Commercial Taxes Department; they need to upload a few basic documents such as PAN, Aadhaar, business place proof, etc. This entails filling in an application form through which one will be authenticated for the TIN issuance. Any form of non registration or exemption and delay in the payment can lead to heavy penalties and interest rates that increase depending on the degree of violation. Compliance with the registration and payment requirements also avoids legal consequences; on the other hand, appropriate compliance with the norms contributes to the effective functioning of business processes and the development of the state’s economy.
Table of Content
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Bihar is possible through the official site of Bihar Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Bihar:
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Bihar Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
For Companies/LLP/Partnership
For Individual
The professional tax in Karnataka is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | ₹1,000 per annum |
| ₹5,00,001 to ₹10,00,000 | ₹2,000 per annum |
| Above ₹10,00,001 | ₹2,500 per annum |
Note:Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty ranging from 25% to 50% of the total due amount may be imposed for late payments.
Conclusion
The legal tax registration applicable to Bihar professionals can be completed under Bihar Tax on Professions, Trades, Callings, and Employments Act, 2011, that covers all sorts of professionals and traders. This is done by completing an application form and providing eligible documents such as PAN number or Aadhaar number and the business address along with the Bihar Commercial Taxes Department. It can be seen that the tax system is focused on the slabs of income and the annual charges may also differ. The registration and payment should be done on time to minimize the interest and penalty charges which may be incurred. As well as maintaining the legal non-compliance and guaranteeing the state’s revenues and local development.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions
For registration of professional tax in Bihar, you have to fill out the forms available at the Bihar Commercial Taxes Department’s website. The applicant must fill Form I for employers, and Form II for the individuals and submit it along with the necessary documents such as, PAN, Aadhaar, business premises proof, etc. After this vetting it is possible to be issued with the TIN and the certificate of enrolment.
This means that they are subjected to pay the professional tax alongside the penalties and interest accrued in case they failed to register or pay the amount on time. To the extent that the compliance is not done, these fines are progressive, hence the need to register and make the payments on time.
The payment of taxes in the Bihar province is normally made on an annual basis for professional taxes. However, one should confirm with the Bihar Commercial Taxes Department website or the local tax offices as the details of payments may be different from one regulation to the other.
A professional tax registration depends on the state in which the business is being conducted. If you relocate to a new state then you will have to register for the state professional tax and procedure relating to registration and regulation in the new state.
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