Taxation

Understanding all about Odisha Professional Tax Registration

Understanding all about Odisha Professional Tax Registration

Professional tax is levied based on the earnings of individuals by salary, business/trade or profession such as Chartered Accountants, Lawyers etc. In this article, we will look into various aspects of Odisha professional tax registration in detail.

What is Odisha professional tax?

The professional tax in Odisha is regulated by the Odisha Professional Tax Act, 2000[1], and the Commercial Taxes Department under the Government of Odisha is responsible for collecting the professional tax.

Professional tax in the state can be levied with a minimum value of Rs. 125 per month & Maximum Rs. 300 per month.

What are the documents required for the Odisha professional tax registration?

The documents required for the professional tax registration in Odisha are:

  • The incorporation documents includes, memorandum of association, articles of association & the certificate of incorporation
  • PAN Card
  • Trade License copy
  • Lease agreement (in case of the rented property)
  • Address & ID proof of the employer
  • Lists of the employees with their salary details
  • Bank account details with a cancelled cheque or copy of the passbook

What is the tax slab rate for professional tax registration in Odisha?

The tax slab rate for professional tax registration in Odisha is in the table below.

S. No.Monthly salaryTax payable per month
1Up to Rs. 13, 304Nil
2Between Rs. 13,304 & Rs. 25,000Rs. 125
3Above Rs. 20,000Rs. 200 per month (except for February) Rs. 300 for February month

What is the process for Odisha professional tax registration?

The steps to be followed for professional tax registration in Odisha are:

Step 1:  Go to the official portal of the Commercial Tax Department of the Government of Odisha.

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Step 2: Select e – registration option under the e – services tab on the homepage.

Step 3: The application Form – Iappears, and the applicant needs to furnish the details in the form.

Step 4: The applicant needs to review and then submit the form.

Step 5: The applicant must enter the bank details on the next page that appears.

Step 6: Click on confirm after filling and reviewing the details for the professional tax registration.

Step 7: Then the applicant receives the application receipt

What is the online Enrolment procedure for Odisha professional tax registration?

The steps to be followed for online enrolment for professional tax registration are:

Step 1:  Go to the Commercial Tax Department official website of the Government of Odisha.

Step 2: Select e – registration option under the e – services tab.

Step 3: Then click on new registration application and enterthe details in the form.

Step 4: After filling all the details, the applicant will be redirected to e – service homepage. The applicant will receive a registration link in an email.

Step 5: Click on the registration link & activate the account. Click ok to submit the pending registration.

Step 6: Then Click on ‘click here’ to view the registration form registered before the enrolment process.

Step 7: Then click on the save button and follow the steps to fill in the enrolment application (Form II).

Step 8: Fill in the requisite details in the application form. The details are:

  • Name of the Applicant
  • Business address
  • Trade name
  • PAN number
  • Email Id
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Step 9: After filling all the details click on the save button and then confirm.

Step 10: The application is submitted to the concerned office & an acknowledgement receipt will be generated.

Once the application is approved, the applicant will receive enrollment number within 3 working days.

What is the process for filing e – annual return?

The steps for filing annual return online are:

  • Visit the official portal of commercial tax department of Odisha & click the e – services tab on the homepage.
  • The applicant must log in using the SRIN number & the password.
  • Then select e – annual filing return & choose professional tax from the drop down menu.
  • Fill Form –V & press the save button & then the return will be filed.
  • Then a receipt number will be generated.

What is the penalty imposed for Odisha professional tax registration?

The penalty of 25% of the tax amount payable, is imposed on the taxpayer who fails to pay the professional tax within the prescribed time, by the assessing authority.

Conclusion

Is it evident from the article, that the professional tax is levied state wise and is based on the income earned by individuals via employment, profession or business. Thus, it is important to know about the procedure of registration & e –filing of annual return for Odisha professional tax.

Read our article: Bihar Professional Tax Registration: Here’s all you need to know

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