Updated on June 19, 2025 02:53:21 PM
Professional tax is a state-level tax that is paid by the persons engaged in business, trade, calling, employment and profession and a significant revenue earner of the state government and local bodies. In Odisha, this is administered by the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000. It is one of the significant sources of finance targeting local development initiatives including transport and communication, schools and hospitals etc. To the employers and the employees of the state, it is essential to learn the registration process and its fees and penalties in order to follow the rules of the state tax.
Every employer is entitled to under professional tax from every salary earner in accordance with the income slab and pay to the government. The registration process usually includes the provision of a professional tax certificate, keeping proper recording and submitting the tax returns on time. If these regulations are not adhered to it is possible to face stiff fines, lawsuits, or even face an audit by the tax authorities. Besides, maintaining the information and following the professional rules of taxation, employers and employees help the state’s welfare and protect oneself from the fines and legal penalties, which guarantee the successful business processes and personal legal obedience.
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 Odisha is possible through the official site of Odisha Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Odisha:
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 Odisha 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 Odisha is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹1,60,000 | Nil |
| ₹1,60,001 to ₹3,00,000 | ₹125 per month |
| Above ₹3,00,000 | ₹200 per month (for first 11 months) and ₹300 for March |
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
Odisha professional tax stands under the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 and fulfills a very important role of funding state and local development schemes. Success of the registration and payment requirement is important to reduce the employers’ and employees’ liability and legal troubles. This is done through online registration with the Odisha Commercial Taxes Department whereby a Taxpayer Identification Number (TIN) is issued. It means that the employers have to deduct the professional tax according to the income slabs and pay them before the due date. By following all these regulations, business operations are seamless thus improving the welfare of the state.
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Frequently Asked Questions
Professional tax is payable by employers, professionals, freelancers and employees and in the case of monthly gross income exceeding income slabs, the professional tax has to be paid in Odisha.
All the taxes for the professional falls under the Indian state tax structure where rates differ with incomes earned. On average it will be from 2500 INR to 10000 INR per annum. Every state has different slab rates and regulations, one should approach his state authorities for more details.
In case the motorist fails to register or pay the amount as assessed at the right time, they are charged a penalty of between 25% and 50% of the due amount and legal charges may be taken against him.
Yes professional tax is state level tax whereas income tax is charged by the central government. There are different professional taxes for different states while the income taxes are standardized across the country.
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