Professional Tax in Bihar: Rates, Registration & Compliance Guide (2026–27)
Understand Bihar professional tax slabs, eligibility, employer deductions, self-employed enrolment, online registration, payment, return filing and common compliance errors—with references to Bihar’s official rules and Gazette.
What is Professional Tax in Bihar?
Quick answer: Professional Tax in Bihar is a state levy on persons engaged in specified professions, trades, callings and employment. Under the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011 and its applicable schedule, individuals with annual income up to ₹3,00,000 pay no tax under the income-based category; higher slabs attract ₹1,000, ₹2,000 or ₹2,500 annually. Employers generally deduct and remit tax for employees, while other liable persons apply for enrolment.
The levy is administered by the Commercial Taxes Department, Government of Bihar. It is different from central income tax and from GST. Liability depends on the category listed in the Bihar schedule—not merely on whether a person has a professional qualification.
The constitutional ceiling under Article 276(2) is ₹2,500 per person per year. The most important source for Bihar’s published bands is the revised schedule notified on 2 February 2016; check for subsequent official amendments before filing.
Professional Tax Slab Rates in Bihar (2026–27)
The following individual-income slabs come from the Bihar Gazette’s revised professional tax schedule dated 2 February 2016. They apply on an annual income basis, not as monthly statutory slab amounts.
| Annual income | Professional tax per year | Example annual income |
|---|---|---|
| Up to ₹3,00,000 | Nil | ₹2,40,000 → ₹0 |
| Above ₹3,00,000 and up to ₹5,00,000 | ₹1,000 | ₹4,20,000 → ₹1,000 |
| Above ₹5,00,000 and up to ₹10,00,000 | ₹2,000 | ₹7,50,000 → ₹2,000 |
| Above ₹10,00,000 | ₹2,500 | ₹12,00,000 → ₹2,500 |
Legal reference: Bihar Gazette, S.O. 28, dated 2 February 2016, Schedule, Entry 1. Amounts are annual.
Is professional tax deducted monthly in Bihar?
Bihar’s rate schedule states annual amounts. The applicable rules prescribe employer deduction and remittance procedures, including deductions connected to September salary. Do not assume that a Maharashtra-style monthly slab or a simple one-twelfth division represents Bihar’s statutory method. Employers should verify the current collection instructions before configuring payroll.
Professional Tax for Dealers, Businesses and Transport Operators
Not every business uses the individual income table. The 2016 Gazette provides separate entries for certain dealers, transport permit holders and specified commercial activities.
Dealer turnover-based slabs
Entry 2 specifically describes dealers registered under the Bihar Value Added Tax Act, 2005 or dealers registered only under the Central Sales Tax Act, 1956. It does not simply say that every GST-registered business automatically falls within this entry.
| Previous-year annual sales/purchase turnover | Annual tax |
|---|---|
| Up to ₹10,00,000 | Nil |
| Above ₹10,00,000 to ₹20,00,000 | ₹1,000 |
| Above ₹20,00,000 to ₹40,00,000 | ₹2,000 |
| Above ₹40,00,000 | ₹2,500 |
Reference: Bihar Gazette (2 February 2016), Schedule Entry 2 and Note 2. Check category and current legal status, particularly for a GST-only business.
Transport permit holders and specified activities
| Category under the 2016 schedule | Annual professional tax |
|---|---|
| Passenger taxi car used for hire/reward | ₹1,000 per vehicle |
| Truck or bus used for hire/reward | ₹1,500 per vehicle |
| Specified activities including coaching classes, brick kilns, hotels, cinema operators, certain companies and banking companies | ₹2,500 |
The annual amount under the transport-permit entry is capped at ₹2,500 per permit holder. Under Note 1 of the schedule, where one person is covered by multiple entries, the highest applicable rate is used; the entries are not automatically added together. The exact legal identity and business category require review.
Bihar Professional Tax Calculator
Enter an annual income to estimate tax under Entry 1 (individual income) of the published Bihar professional tax schedule.
Enter your annual income to calculate.
Illustrative calculator only. It does not determine dealer, transport or specified-business liability; confirm the correct statutory category and any later amendments.
Who Needs Professional Tax Registration or Enrolment in Bihar?
Employers: registration
An employer responsible for salary or wages in Bihar is generally required to obtain a Certificate of Registration, deduct the applicable professional tax and comply with payment and return requirements. Government employers and private employers should assess their applicable obligations.
Other liable persons: enrolment
A person liable in their own capacity rather than through employer deduction generally needs a Certificate of Enrolment. This can include eligible self-employed individuals and persons conducting covered trades or activities.
A person should not normally be required to duplicate the employer-paid amount solely because they are salaried. However, if an individual also conducts another covered activity, the category rules and highest-rate provision must be considered.
Does Bihar Professional Tax Apply in Patna and Other Cities?
Yes. The Bihar state framework applies across the state, subject to its liability criteria. Whether an employer operates in Patna, Gaya, Muzaffarpur, Darbhanga, Bhagalpur or another district does not create a different city-specific slab. Jurisdictional commercial tax circles handle registration and administration.
How to Register for Professional Tax in Bihar Online
The Bihar Commercial Taxes Department’s business-services guide sets out the following application sequence. Portal menus can change, so treat labels as indicative and use the current departmental interface.
- Identify the correct application. Employers apply for registration; other liable persons apply for enrolment. Confirm the legal entity and applicable category.
- Open the government portal. Visit biharcommercialtax.gov.in and locate the e-Registration service.
- Select Professional Tax Registration/Enrolment. Choose the option matching the applicant’s status.
- Complete the prescribed application. Enter the applicant’s identity, PAN/TAN as relevant, address, employer/business details and other required fields.
- Upload supporting documents and submit. Retain the acknowledgement or application reference number and respond to any departmental query.
- Obtain the certificate. After approval, download and safely retain the Certificate of Registration or Enrolment. Verify its particulars before first compliance filing.
Documents Required for Bihar Professional Tax Registration
The government’s registration guide identifies these common supporting records:
- Prescribed registration/enrolment application (Form PT-I / PT-IA under the department’s guide).
- Applicant photographs, as required by the application process.
- PAN and/or TAN details for the employer, proprietor, partners or relevant person.
- Identity proof, such as voter ID, Aadhaar, driving licence or passport, as applicable.
- Address proof, such as utility bill or other acceptable document.
- Bank account information and supporting bank record.
- Additional entity-specific information requested in the live application.
According to the cited departmental guide, the registration application has no processing fee or security deposit; this is separate from professional tax payable by the applicant. The department may request verification or clarification.
Important Bihar Professional Tax Forms
| Form | Purpose |
|---|---|
| PT-I / PT-IA | Application for registration / enrolment |
| PT-II / PT-IIA | Certificate of registration / enrolment |
| PT-VIII | Return for employer deducting tax from salary or wages |
| PT-IX | Return for person enrolled under the Act |
| PT-X | Challan for payment |
Professional Tax Payment and Return Filing in Bihar
Registration is not the end of compliance. Liable employers and enrolled persons must determine the correct amount, make payment and file the return required for their category.
How to pay professional tax online
- Visit the official Bihar Commercial Taxes portal.
- Use the professional tax payment service available for the relevant account/period.
- Verify the applicant reference, applicable year, circle, category and tax amount.
- Complete the permitted payment process and retain the generated challan/receipt.
- Reconcile the payment with the employer deduction register or enrolment records and file the prescribed return.
Bihar Professional Tax Due Dates
| Activity | Commonly published timeline | Practical action |
|---|---|---|
| Salary-related deduction | September payroll under the published rules summaries | Check the operative deduction rule and payroll records |
| Professional tax payment | 15 November | Confirm applicability and any official extension |
| Annual return | 30 November | Use the appropriate employer/enrolment return |
Exemptions, Income Tax Treatment and GST Differences
Who is exempt from Professional Tax in Bihar?
Under the individual-income schedule, persons whose annual income does not exceed ₹3,00,000 have a nil tax amount. Under the specified dealer schedule, covered dealers whose relevant previous-year turnover does not exceed ₹10,00,000 have a nil amount. These nil slabs do not, by themselves, remove every registration or compliance question for an employer.
Do not assume an automatic exemption based only on being a senior citizen, a government employee, a person with a disability, or a member of a particular profession. Check whether a valid Bihar-specific statutory exemption actually applies.
Can professional tax be deducted while computing income tax?
For salaried individuals, professional tax actually paid can be relevant to the computation of salary income, subject to the applicable income-tax statute and tax regime. The treatment may differ under the old and new regimes and between assessment years, particularly during the transition to the Income-tax Act, 2025. Ask your tax preparer to examine the correct year’s law rather than automatically claiming a deduction.
Is professional tax the same as GST or income tax?
No. Professional tax is a Bihar state levy based on the relevant profession/trade/employment categories. Income tax is a central direct tax on income; GST is an indirect tax on applicable supplies. Having a GST registration does not by itself establish which Bihar professional tax entry applies.
Common Compliance Mistakes and Consequences
- Applying salary slabs to every business: examine separate dealer, transport and activity-based entries.
- Missing a registration: distinguish employer registration from individual enrolment.
- Using the wrong payroll frequency: do not import another state’s monthly slabs into Bihar.
- Ignoring boundary values: “exceeds” means the threshold itself is not in the higher band.
- Failing to retain evidence: preserve registration certificates, salary calculations, challans, returns and notices.
- Relying on outdated filing dates: check official notices before each compliance cycle.
Non-registration, non-payment, failure to deduct and failure to file can attract statutory consequences, including applicable interest and penalties. The outcome depends on the specific contravention and operative law; there is no single penalty that accurately describes every type of default. If you receive a notice, reconcile your liability and records before preparing a response.
Frequently Asked Questions About Professional Tax in Bihar
What is the professional tax rate in Bihar for 2026–27?
For individuals under the income-based schedule: nil up to ₹3 lakh annual income; ₹1,000 above ₹3 lakh to ₹5 lakh; ₹2,000 above ₹5 lakh to ₹10 lakh; and ₹2,500 above ₹10 lakh. Other categories have their own schedule entries.
What is the maximum professional tax in Bihar?
₹2,500 per person per year, consistent with Article 276(2) of the Constitution of India.
Do I pay professional tax on a monthly salary of ₹25,000?
At a full-year annual income of exactly ₹3,00,000, the individual income category has nil tax. Additional circumstances and the relevant period must be considered.
Is Professional Tax registration mandatory for employers in Bihar?
The Bihar Commercial Taxes Department’s registration guide says employers in the state are required to register. Their deduction and payment obligations should be determined under the applicable Act and Rules.
What is the difference between registration and enrolment?
Registration is generally used by employers responsible for employee salary deductions. Enrolment is generally used by other persons who must pay in their own capacity.
Can a self-employed lawyer, CA or consultant be liable?
Potentially, yes, if the person falls within the taxable categories and thresholds of the Act and schedule. Liability should be assessed on the person’s actual circumstances, not professional title alone.
Is professional tax applicable to a GST-registered trader?
GST registration alone does not decide the issue. The published dealer entry refers to registrations under the Bihar VAT Act or Central Sales Tax Act, while other schedule entries may also be relevant. Verify how current law applies to the particular business.
When is Professional Tax due in Bihar?
Compliance resources commonly state 15 November for payment and 30 November for the annual return, but check the live Bihar Commercial Taxes Department notice and any extension for the relevant period.
How do I register for Professional Tax in Bihar?
Use the e-Registration service on the Bihar Commercial Taxes Department portal, choose the appropriate registration or enrolment option, submit the prescribed details and supporting documents, and retain the certificate after approval.
Does Bihar professional tax have a different rate in Patna or Gaya?
No separate Patna or Gaya salary slab was identified. The state’s schedule applies throughout Bihar, with local tax circles handling administration.
Get Professional Tax Assistance in Bihar
For Bihar professional tax registration, enrolment, employer payroll deductions, compliance questions and notices, contact Bihar Tax Consultant. The appropriate filing and service depend on the facts of your case.
Office: Bihar Tax Consultant
Address: BIIT Campus, Nahar Road, New Azimabad Colony, Patna, Bihar – 800006
Primary phone: +91 8789155395
Alternate phone: +91 9304644435
Website: bihartaxconsultant.com
Send an Enquiry Call the Office
Please confirm office availability by phone before visiting. Sending an enquiry does not establish a professional engagement.
Official Sources and Further Reading
- Government of Bihar — Revised Professional Tax Schedule, S.O. 28, 2 February 2016 (official Gazette PDF).
- Commercial Taxes Department — Guidebook, Professional Tax Registration, pages 12–13.
- Bihar Commercial Taxes Department — Official portal.
- India Code — Constitution of India, Article 276.
Editorial review note: This article reflects the official 2016 rate schedule and departmental registration guide available during review on 21 October 2026. A fresh, official FY 2026–27 amendment or due-date extension was not verified. Confirm changes and procedural requirements before acting.
Disclaimer: This page provides general legal and tax information, not advice for a specific case. Nothing here guarantees a tax outcome or replaces an assessment of current legislation, official notifications and facts.