Thu 24 April, 2014  Drop a Visiting Card
Jharkhand enforces new professional tax regime

Under the new rules, both government and private sector professionals would need to pay tax up to Rs 2,500 per annum, from this year on

Ranchi: Professionals in Jharkhand will now have to mandatorily part with some amount of their earnings for working in the state. The state government notified the Rules for implementing Jharkhand Tax on Professions, Traders, Calling and Employment Act 2011 under which all professionals, whether employed with the government or private firms, will be required to pay a certain amount from their annual income.

With a view to ensuring strict adherence to the law, the State Commercial Department is now finalising the modalities for collection of professional taxes from management consultants, engineers, doctors, private tutors, journalists, doctors, air and general travel agents, pathological testing labs, private nursing homes, legal and financial consultants, etc.

As per the accompanying rules, professionals could be charged up to Rs 2500 annually. The department is preparing the database for working professionals, in consultation with private and government agencies, so that the taxes could be directly deposited in the designated account directly from the employers or individuals.

Joint Commissioner, Commercial Taxes Department, Ranjan Sinha said that while the government departments have already been told to comply with the rules, private companies are required to get a separate registration number from the department. “We are looking for an automated mechanism on the pattern of the one already enforced, the Tax Deducted at Source (TDS) system,” he added.

Salaried people will be the first to bear the brunt of this new tax as both government and private employees have to fork our Rs 1200 to Rs 2500 per annum on this account. People earning less than Rs 3 lakh per annum have, however, been exempted from it. The state government hopes to earn revenue to the tune of Rs 100 crore annually from the new taxation regime.

All registered dealers with the Commercial Taxes Department will also have to pay professional tax at the rate of Rs 1000 to Rs 2500 in four slabs. Journalists have been put under a flat slab of Rs 600 per year, while private tutors, up to the standard IX, will need to pay Rs 1500 and for standard X and above the tax charged would be Rs 2500.

The rules also envisage collecting Rs 1000 as professional tax from advocates with 3-7 years working experience, while those having more experience are required to pay Rs 2500 per annum.

Professional Tax

From which month the Professional Tax for Jharkhand was applicable and please let me know the registration procedure to apply for PT registration no at Jharkhand and at which office we need to submit the PT Registration form

Confusing Professional Tax Laws

With different states implementing different Tax Rates, it gets very confusing for the tax payer. Moreover, there are many Individuals who reside in one state and work in another.

I firmly believe that the Central Govt should try to standardise such laws

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