Updated on April 02, 2025 06:22:50 PM
This article focuses on the professional tax registration in Jharkhand, which is done under the Jharkhand Tax on Professions, Trades Callings and Employments Act 2011. This tax is paid by a large scale of citizens who work on different levels starting with the employees on fixed wages, through the self-employed and up to the freelancers and businessmen. The Act requires that anybody earning a certain level of income should be registered and pay professional tax which would in turn be used to contribute to the income of the state. This revenue assists in the facilitation of the development of social services such as roads, hospitals, schools or other such development projects in the country.
Companies are expected to subtract the tax from the employees’ wages and deposit it with the state while most freelancers will directly pay the tax themselves. Some of the documents needed in the registration process include the Permanent Account Number PAN number, Aadhaar number, details of the business or professional establishment, and other requirements form the government’s Commercial Taxes Department of Jharkhand. The rules of registration and payment should also be followed strictly as there are heavy penalties if one fails to meet the stipulated payment or registration procedures, accrued interest on the delayed amount and even legal consequences. The Jharkhand professional tax like other states is charged according to the income slabs and it is mandatory for each and every person or company who falls under this tax to register and pay this tax on time so as to avoid any legal hurdle in their profession or business.
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Jharkhand is possible through the official site of Jharkhand Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Jharkhand:
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Jharkhand Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
For Companies/LLP/Partnership
For Individual
The professional tax in Jharkhand is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | ₹1,200 |
| ₹5,00,001 to ₹8,00,000 | ₹1,800 |
| ₹8,00,001 to ₹10,00,000 | ₹2,100 |
| Above ₹10,00,001 | ₹2,500 |
Note:Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty ranging from ₹500 to ₹5,000 may be imposed for late payments.
Professional tax registration in Jharkhand is done based on the Jharkhand Tax on Profession, Trade, Calling, or Employments Act of 2011 only. They are relevant to the paid workers as well as the wage earners, freelancers, or contractors, or business people. The tax must be paid by the employer on behalf of the employee and in case of self-employed people they will pay the tax themselves. Documentation such as PAN, Aadhaar, and proof of business for registration was also submitted. Noncompliance attracts penalties and other legal consequences. It is calculated according to income bands, with the costs spreading between ₹1,200 and ₹2,500 per year. They help in establishing legal recognition of the marriage, avoiding penalties and ultimately gaining the eligibility to receive some of the state’s benefits.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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Yes, the registration can be done online through the use of any search engine through the official Jharkhand Commercial Taxes Department website by filling the relevant form and submitting the necessary documents.
Yes, professional tax is charged on various careers such as Doctors, lawyers, accountants, businesspeople, and other occupations as decreed by the state government.
It helps in adhering to the state laws governing taxation, which might be considered eligible for certain benefits such as insurance, pension and any other welfare program in line with the state’s policies.
Professional tax registration number, is a unique identification code that is assigned to a person or company that has registered under the laws of professional tax. That is why it is used to record taxes and compliance with the established local legislation.
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