The Professional Tax Odisha Act, Applicability, Slab, Penalty and Payment In 2024?

Professional Tax Odisha is a tax levied on individuals and businesses engaged in any concern, work or employment. It applies to salaried employees, self-employed professionals and professions based on their income or turnover. The tax slabs range from a rebate for those earning up to ₹2.5 lakh annually to a maximum of ₹2,500 for those earning more than ₹5 lakh per annum. Registration can be done online or at the tax office, requiring documents like PAN, Aadhaar and concern registration. Clearance can be done online or offline, with due dates usually being the 15th of the corresponding month for proprietors and the 30th of June for self-employed individuals. Late clearances may attract a penalty, but exemptions exist for specific categories like senior citizens, persons with disabilities and armed forces personnel.

What is the Professional Tax Odisha?

Professional Tax Odisha is a tax on individuals and entities earning income from business, work or employment within the state. It is levied by the Odisha State Government under the authority specified in the Odisha Professional Tax, Work, Trade, Calling and Business Act, 2000. The central figure is explained here.

What are the Benefits of Professional Tax Odisha?

Professional tax serves as a facilitator and revenue-generator for the state government of Odisha, India. Although it is a form of taxation, there are some indirect benefits associated with it for both individuals and the state:

1. Revenue for Development: Funds ongoing welfare and infrastructure projects.

2. Employee Welfare: Social protection and well-being programmes can be supported.

3. Tax Deduction: Deduction under section 16(iii) of the Income Tax Act, which reduces the taxable income.

4. Legal Compliance: Helps avoid punishment and legal issues.

5. Employer Trustworthiness: Trust is built through permission and freedom.

6. Financial Stability: Provides substantial revenues for long-term growth.

7. Better public services: favours better services such as carriage and sanitation.

Professional Tax Odisha Act?

The Odisha State Profession, Work, Profession and Employment Tax Act, 2000, commonly known as the Professional Tax Odisha Act, is the law that governs the levy and collection of trade tax in Odisha. Its salient aspects are given below.

What are the Professional Tax Odisha Applicability?

Professional tax in Odisha is levied on various individuals and entities engaged in different professions, concerns, and wage labour. Here is a track record of its application.

1. Salaried Employees: Deduction is made from the value of Government and private employees having income above a prescribed limit.

2. Professionals: This applies to Doctors, Lawyers, CAs, etc. practising in Odisha.

3. Business Owners: Merchants, shop owners and the self-employed are responsible.

4. Companies: Firms and businesses must make restitution for themselves and their employees.

5. Employer: Responsible for deducting and depositing taxes for his employees.

6. Exemptions: Low-income individuals, persons with disabilities, and armed forces personnel are exempted.

What is the Commercial Tax Odisha?

Commercial tax in Odisha refers to taxes levied on businesses and commerce-related activities within the state, primarily related to selling goods and services. These taxes are collected from the Ministry of Commercial Taxes of Odisha, which collects a wide range of taxes, including:

1. Goods and Services Tax (GST): A primary tax on goods and services that will replace older taxes like VAT and CST.

2. Value Added Tax (VAT): This applies to certain goods like petroleum and alcohol.

3. Central Sales Tax (CST): Levied on inter-state sale of non-GST goods.

4. Professional Tax: Tax on professionals and businesses earning income.

5. Entertainment Tax: This may apply to specific local entertainment activities.

What is the Professional Tax Odisha Slab for Business? 

Professional Tax Odisha slabs for professions are determined based on the annual turnover or profits of the business. The following are the professional slabs used for professions.

1. Up to ₹2.5 lakh per annum: Exempt from professional tax.

2. Between ₹2.5 lakh to ₹5 lakh per annum: ₹1,200 per annum.

3. Above ₹5 lakh per annum: ₹2,500 per annum (maximum limit prescribed by law).

These slabs apply to business owners, traders and self-employed professionals or run businesses.

Professional Tax Odisha Registration?

Step 1: Get PAN: Make sure you have a Permanent Account Number (PAN) as it is required for registration.

Step 2: Visit the Commercial Tax Office: Visit the nearest Commercial Tax Office in Odisha to obtain the registry form.

Step 3: Fill out the form: Fill out the Professional Tax Registration Form (PTRC). The form can usually be acquired from the Commercial Tax Office or downloaded from their official website.

Step 4: Submit documents: Provide the required documents such as:

• Proof of identity (e.g., PAN card, Aadhaar card).

• Proof of address (e.g., utility bill, lease agreement).

• Business registration documents (e.g., partnership deed, certificate of incorporation).

• Details of your business or profession.

Step 5: Pay the registration fee: A nominal fee may be expected to proceed with the registration in any state.

Step 6: Get a Registration Certificate: Once your application is processed, you will receive a Trade Tax Registration Certificate (PTRC).

What are the Documents Required for Professional Tax Registration Odisha?

To register for professional tax in Odisha, you need to provide the following documents:

1. Proof of Identity:

• PAN Card.

• Aadhaar Card.

• Passport or Voter ID (if PAN or Aadhaar is not available).

2. Proof of Address:

• Utility Bill (Electricity, Water, etc.).

• Rent Agreement or Property Deed.

• Bank Statement with Address.

3. Business Registration Documents:

• Partnership Deed (for Partnerships).

• Certificate of Incorporation (for Companies).

• Trade License.

4. Financial Documents: Statement of Annual Turnover or Income (to determine slabs).

5. Photographs: Recent passport-size photographs of the owner or partners, if required.

How to Pay Odisha Professional Tax Payment?

To pay professional tax in Odisha, follow these steps:

Odisha Professional Tax Payment Online

Step 1: Visit the official website of the Odisha Commercial Tax Department.

Step 2: Find the Professional Tax section: Go to the “Online Payment” or “E-Payment” section.

Step 3: Login: Enter your user ID and password to access your account.

Step 4: Select Professional Tax Payment: Select the Professional Tax Payment option from the available services.

Step 5: Enter details: Provide the required details like income, turnover or employee information depending on the payment type.

Step 6: Calculate and Confirm: Confirm the amount to be paid and confirm the payment details.

Step 7: Make payment: Select the payment method (e.g., debit/credit card, net banking) and complete the payment.

Step 8: Download Receipt: Save or print the payment receipt for your records.

Odisha Professional Tax Payment Offline

Step 1: Visit the local commercial tax office: Visit the nearest commercial tax office.

Step 2: Fill out the payment form: Fill out the Professional Tax Payment Form available at the office.

Step 3: Submit the form: Submit the form along with the payment (cash or cheque) at the counter.

Step 4: Get Receipt: Get the receipt of the payment made.

Professional Tax Odisha Payment Status?

To check the payment status of professional tax in Odisha, follow these steps:

Step 1: Visit the official website: Visit the website of the Odisha Commercial Tax Department.

Step 2: Go to the Professional Tax section. Look for the “Payment Status” or “Check Status” section.

Step 3: Login: Enter your user ID and password to access your account.

Step 4: Select Payment Status option: Select the option to check the status of your Professional Tax payment.

Step 5: Enter details: Provide the required details like payment reference number or date of payment.

Step 6: Check Status: The website will display the status of your payment, including whether the payment has been processed or there are any issues.

What is the Professional Tax Odisha Due Date?

The last date for professional tax in Odisha depends on whether you are a person or a business. Here is a job summary:

For Employers (Monthly Payment):

• Due Date: Trade Tax should be cleared every month. Generally, payment for a month should be made by the 15th of the following month.

For self-employed Professionals and Businesses (annual payment):

• Due Date: Trade tax for self-employed individuals and businesses is usually payable annually. The due date is usually June 30 for a financial year ending March 31.

Filing of Returns:

• Annual Returns: The owner and the business must file annual returns for the previous financial year, usually by 30 June.

Professional Tax Odisha Late Payment Penalty? 

If you clear your professional tax dues late in Odisha, you may have to pay a penalty. The potential impact can be summarised below:

1. Interest on late payment: Interest can be charged on the amount of trade tax not cleared by withholding. The rate of interest is usually mentioned by the state government and can be accrued every month.

2. Late Fees: A fixed late fee or a surcharge may be levied for delay in settlement. This may vary depending on the degree of delay.

3. Additional Penalties: Continued non-compliance or significant delays may result in additional fines or legal action, including penalties and securities charges.

Important Points:

• Timely Payment: To avoid penalties, ensure that the redemption and filing is done by the due date.

• Check local rules: Penalty rates and rules may vary, so check the Odisha Commercial Tax Department website or contact their office for details for more information Contact Our Expert Legal Adviser.

What are the Professional Tax Odisha Exemption?

In Odisha, certain persons and posts are exempted from paying trade tax. The main exemptions are given below:

1. Low-Income Persons: Persons whose income is below the minimum limit determined by the State are exempted from paying trade tax.

2. Senior Citizens: Traders aged 60 years and above are generally exempted from applicable tax.

3. Persons with disabilities: Persons with physical disabilities, including blindness or the mentally disabled, are generally exempt.

4. Members of the Armed Forces: Personnel serving in the Army, Navy and Air Force are exempted from paying trade tax.

5. Temporary workers: Temporary workers who are hired explicitly as substitutes or replacements in factories may be exempted.

6. Parents of disabled children: In some instances, parents or guardians of permanently disabled children are exempted from paying professional tax.

7. Central Government Employees: Employees working under the Central Government but posted in Odisha are exempted from professional tax.

Conclusion

Professional Tax Odisha is an essential source of income for the state of Odisha, which applies to individuals engaged in a wide range of occupations and jobs. However, the state provides certain exemptions to low-income people, senior citizens, persons with disabilities and unusual positions such as members of the armed forces to ensure justice and inclusiveness. Due dates and clearance requirements must be followed to avoid penalties. Understanding the rules, rates, and exemptions helps taxpayers meet their dues while optimizing the state’s helpful measures.

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