Patna: Officers and employees of Central
and state government, Railways, state boards and corporations
in Bihar will henceforth have to pay professional tax under a
new legislation passed by the Assembly.
Salaried professionals earning more than Rs 3 lakh per
annum would come under the ambit of the legislation modelled
on the lines of similar laws in Maharashtra, West Bengal and
other states, official sources said on Wednesday.
The state assembly adopted the Bihar Profession, Trade,
Livelihood and Employment Tax Bill, 2011 yesterday, paving the
way for the imposition of the tax.
The bill will come into force from the date of its
notification in the state gazette, the sources said.
Those earning between Rs 3 lakh and Rs 5 lakh would pay
an annual professional tax of Rs 1,000 while those earning
between 5 lakh and Rs 10 lakh will have to pay Rs 2,000.
Employees getting above Rs 10 lakh per annum will pay Rs
2500, the sources said.
Employers will collect the professional tax from
salaried people working in private firms or government as per
the TDS (Tax Deducted at source) module. Self-employed
professionals like doctors, lawyers and accountants would also
be brought into the professional tax net.
Under the provisions of the new legislation, the
commercial taxes department would henceforth be the nodal body
to collect the professional tax instead of municipal bodies,
which hitherto collected the professional tax in their
In case of default, an employee would be liable to a
fine of two per cent at simple interest rate per month on the
outstanding amount, the sources said.
The employer or an employee would be liable for three
months simple imprisonment or a fine of Rs 5,000 in case of
violation of the rules without assigning any valid reason, the