In compliance with Article 276 of the Indian Constitution, Indian states impose a professional tax; Orissa is one of them, and it is a direct tax that applies to merchants, salaried individuals, entrepreneurs, and professionals in diverse occupations in Orissa.
The Department for Commercial Taxes levies professional tax in Orissa, which is a substantial source of revenue for the Government. The amount of professional tax, Orissa does not exceed ₹ 2,500 and depends on the professional taxpayer's salary. The employer deducts the total amount of professional tax, Orissa, payable by his employees every month from their net salary.
The method of calculating professional tax in Orissa differs from the other states in India. The methodology followed for professional tax, Orissa, is for professionals to pay ₹ 200 for the first eleven months and ₹ 300 for the final month.
This article is our attempt to help you learn the norms of professional tax, Orissa, for effective compliance and contains:
- Professional Tax, Orissa—Requirements
- Professional Tax, Orissa— Imposing and Collecting Authority
- Professional Tax, Orissa—Who Must Pay?
- Professional Tax, Orissa—Rates
- Table of Professional Tax, Orissa—Rates
- List of Employer's Documents for Registration for Profesional Tax, Orissa
- Steps to Register for Professional Tax, Orissa
- Professional Tax, Orissa Registration in 6 Quick Steps
- How Can I Find Out How Much Professional Tax, Orissa, I've Paid So Far?
- How Many Times A Year Do Employers Have To Pay Professional Tax, Orissa?
- How Can Deskera Payroll Help?
- Key Takeaways
- Related Articles
You would have seen professional tax as a deduction on your payslip or Form 16. Although you may notice that it reduces your salary figure, you probably did not understand why the deduction and what is meant by the professional tax. Continue reading to know.
Professional tax, Orissa, is a tax levy on all persons in occupations, trades, or any other form of employment. Employees, self-employed individuals, freelancers, professionals, and those who earn more than just money come under the purview of professional tax, Orissa.
As per the directive of Article 246 of the Indian Constitution, only the Parliament has the exclusive jurisdiction to create laws concerning the Union List, which includes income taxes. Professional tax, Orissa is similar to income tax that Orissa State levies on its citizens involved in employment.
Professional Tax, Orissa—Requirements
The requirement of the "Odisha State Tax on Professions, Trades, Callings, and Employments Act 2000," also known as the Professional Tax Act, is :
- The above Act considers all organizations with employees as Professional Tax— deductors and requires them to register
- All the employed or professionals who come under the purview of the above Act must register themselves as professional tax payees in Orissa and pay professional tax Orissa
Professional Tax, Orissa— Imposing and Collecting Authority
Individuals with the following designations can assist the Commissioner with the diverse tasks involved in Professional Tax, Orissa:
- Additional Commissioner of Profession Tax Orissa
- Assistant Commissioner of Profession Tax Orissa
- Profession Tax Officer
- Assistant Profession Tax Officer
The authorities shall exercise powers and execute duties as may be bestowed or imposed by or under the terms of these rules within local areas as the Commissioner may from time to time assign to them by notification.
The Commissioner for Professional tax, Orissa, shall have administrative supervision over:
- The Additional Commissioner of Profession Tax, Orissa
- The Assistant Commissioner of Profession Tax, Orissa
- The Profession Tax Officer, Orissa and
- The Assistant Profession Tax Officer, Orissa
The Commissioner, by written orders, may delegate any of his powers and duties, subject to the terms and limits of the Act or rules to persons nominated under sub-rule may apply. By general or special order, the Orissa Government assists the Commissioner of Professional tax, Orissa.
The Commissioner may assign the functions of any office for Professional Tax, Orissa, to such Assistant Profession Tax Officer by written order, subject to the criteria indicated by him in that order.
Professional Tax, Orissa—Who Must Pay?
For a better understanding of the professional tax, Orissa, liability and to identify if you are liable to pay the same, consider the following:
Professional Tax, Orissa —Deductor or Employer
Every month, business organizations in Odisha must deduct Professional Tax from their employees' monthly salaries at the applicable rates and pay the same to the appropriate Head of Account of the State Government through Orissa Treasury. Please see the rate chart for the current rates. As per the Professional Tax Rules in Orissa, the following companies must pay professional tax Orissa:
- Hindu Undivided Family (HUF)
- Co-operative societies
- Clubs and associations
- Branches Offices of Companies
Professional Tax, Orissa, Existing Registration under GST or VAT Act in Odisha.
An orgnaization may register itself under the GST or VAT Act in Orrisa or is due to report under the Acts mentioned above ( GST or VAT Act ). In that case, they must enroll themselves as professional tax payees in Orissa. They must also pay a fixed fee of ₹ 2500/- (Rupees Two Thousand Five Hundred Only) per year. You can transfer the sum to the appropriate Orissa Government Head of Account every year through the Odisha Treasury.
List of Professionals as per the Guidelines for the Payment of Professional Tax, Orissa
The other professionals who are liable to pay professional tax, Orissa, are as follows:
- Healthcare Professionals such as Doctors, Pathologists, Dentists, Surgeons, Radiologists, Physiotherapists, and those involved in other similar professional roles or occupations of a paramedical nature
- Agents And Brokers such as Postal Agents who engage themselves in encouraging investments in National Savings Scheme
- The principal or Chief Agents working for Insurance Companies as Surveyors or Loss Assessors are registered or licensed under the Insurance Act, 1938 (Sec. 4 of 1938)
- Del Credere Agents. Real Estate Agents, Commission Agents, Mercantile Agents, Or Promoters
- Consultants, both professional and technical such as Architects, Management consultants, Cost Accountants, RCC Consultants, Actuaries, Chartered Accountants, Tax Consultants, Engineers, Interior Decorators, etc.,
The professionals mentioned above must pay professional tax annually at the prescribed rates.
Professional Tax, Orissa—Rates
The intention of the State Government in Orissa behind the enactment of the Orissa State Professions, Trades, Callings and Employment Act in 2000 is to impose a tax levy on all professions, callings, and employments in the state. The people of Orissa generally call the Act the Profession Tax Act, which governs the entire state of Orissa. The professional tax, Orissa rates are as below:
Table of Professional Tax, Orissa—Rates
Monthly Salary Range
Professional Tax, Orissa per Month
₹1 to ₹1,60,000
₹1,60,001 to ₹3,00,000
List of Employer's Documents for Registration for Profesional Tax, Orissa
As per the directive of the Professional Tax, Orissa or the Orissa State Tax On Professions, Trades, Callings, And Employments Act, 2000; the deductor or employer must submit the below-mentioned document for registration concerning professional tax, Orissa:
- The Memorandum of Association of the organization
- The Articles of Association of the Enterprise
- Pan Card of the entreprenuer
- Lease Agreement, if any
- A copy of the trade license and S & E Certificate
- Proof of address along with photo identity proof
- Contact details such as email ID and Telephone number or any other contact number
- The enrollment fee receipt costing Rs 2500
- The bank details of the entrepreneur, along with a canceled cheque
- A list of the employees of the organization along with their gross salary
Steps to Register for Professional Tax, Orissa
- You can pay professional tax, Orissa online via Net Banking, UPI, Credit / Debit Cards, and SBI e-Pay through the Odisha Treasury Portal
- The taxpayer can pay professional tax, Orissa using the PT registration / Enrolment Number or the GSTIN
- You can pay professional tax, Orissa effortlessly using Internet Banking, UPI, credit or debit card, or SBI e-Pay
Professional Tax, Orissa Registration in 6 Quick Steps
- Visit the e-Registration website to register or enroll under the Act
- Provide your email address and PAN Card details
- Select and submit a Security Question and Answer
- Two forms will pop up on the Application page:
- Form I – For Deductors / Employers; and
- Form II – For Others Enrollment (Business entities, Traders, Professionals, etc.)
- Submit the required form (FORM No. V) after filling it up
- On the approval of the application, you will receive your Registration Number and Password on your provided email address
The application for the registration or enrollment under the Professional Tax Act is free of charge.
How Can I Find Out How Much Professional Tax, Orissa, I've Paid So Far?
To know the total amount of professional tax, Orissa, that you have paid so far, follow the following steps:
- The CT & GST Organization's portal now includes the ability to search for the information on Professional Tax paid by taxpayers
- Select "PT Payment Details Search." To check the history of all payments made, enter your TIN / SRIN / GSTIN
- Ensure that you input the TIN / SRIN / GSTIN with which you use to pay Professional Tax and click on Search
- The system will provide all of the information of such taxes paid to date
How Many Times A Year Do Employers Have To Pay Professional Tax, Orissa?
As an employer or deductor, you must pay professional tax, Orissa, by following the below-mentioned guidelines:
- If you are an employer and deduct Professional Tax (at the applicable rates) from your employees' salaries, you must deposit the amount deducted from their salaries every month
- You must pay Rs. 2500/- once a year, if you have enrolled or are due to pay professional tax, Orissa as a registered taxpayer under GST / VAT or as a Self-Employed Professional
- You can utilize the simple online payment methods that are accessible. To make the payment, go to the website's e-Payment page
The payment of professional tax, Orissa, is mandatory. The precise amount of the penalty and the penal interest varies from one state to another, and it depends on the relevant state legislation concerning the payment of Professional tax. Nevertheless, all Indian States that impose professional taxes penalize their residents for non-compliance with the Professional Tax Rules, 2000, as per the state's relevant legislation.
The penalty for failure to register for the professional tax, Orissa, will have to be borne by the individual or company for the unregistered time. Moreover, if they fail to deposit the amount or make late payments, they are liable to pay the penalty for the delay period.
For all organizations and individuals held culpable for non-deposition of the amount due towards professional tax, Orissa will have to face the penalty of paying the amount owing, the interest thereof, and an appropriate fine. Orissa's work, the officials concerned with the professional tax can claim the defaulter's assets or even link their bank accounts to recover them. The jurisdiction may prosecute repeated offenders under the Professional Tax Act, 2000.
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- The Act governing Professional Tax, Orissa is the Orissa State Tax On Professions, Trades, Callings, And Employments Act, 2000
- The Orissa State Tax On Professions, Trades, Callings, And Employments Act, 2000 is more commonly called the Professional Tax Act in Orissa
- The Orissa State Tax On Professions, Trades, Callings And Employments Rulest, 2000 governs the payment of professional tax, Orissa
- Professional Tax, Orissa applies to the employer, whom the Act describes as a deductor and employee as the taxpayer who is liable to pay tax
- Exemptions are not applicable for professional tax, Orissa
- The deductor and the tax payee must register for professional tax payment, Orissa, by submitting a duly filled-in FORM No. V
- The professional tax registration process in Orissa is online
- The registration process for professional tax—Orissa requires a set of documents
- All taxpayers must file their consolidated returns concerning professional tax, Orissa annually, on the 30th of March
- Professional tax, Orissa require taxpayers to file their monthly return on the last day of each month
- Professional tax, Orissa applies only to wage and salary earners employed in Orissa