Professional Tax Registration and Returns in Bihar and Delhi – 2026 Employer Guide

Introduction

Professional Tax is a state-level tax imposed on individuals earning income through employment, profession, trade, or other specified activities. However, Professional Tax is not applicable in every State or Union Territory in India.

For employers operating in Bihar and Delhi, this distinction is particularly important:

Bihar: Professional Tax is applicable under the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011, and employers may have registration, deduction, payment, and return-filing obligations.

Delhi: Delhi does not currently levy Professional Tax, and therefore employers in Delhi generally do not have a Professional Tax registration or salary-deduction/return-filing requirement.

This article explains the Professional Tax registration and compliance requirements for employers in Bihar and clarifies the position for businesses operating in Delhi in 2026.

What is Professional Tax?

Professional Tax is a tax imposed by a State Government under the constitutional framework permitting States to levy taxes on professions, trades, callings, and employments.

Despite its name, Professional Tax is not restricted to doctors, lawyers, Chartered Accountants, or other professionals. Depending on the applicable State law, it can also apply to salaried employees and persons carrying on business, trade, or employment.

The maximum amount that can generally be imposed as Professional Tax under Article 276 of the Constitution is ₹2,500 per person per year.

The actual applicability, slab rates, exemptions, registration requirements, and filing procedures depend upon the law of the relevant State.

Professional Tax in Bihar

Bihar has enacted the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011. The Act is administered by the Commercial Taxes Department, Government of Bihar.

Employers in Bihar should therefore evaluate whether they are required to obtain Professional Tax registration and deduct Professional Tax from employees.

The Bihar Commercial Taxes Department specifically provides facilities for:

Professional Tax registration

Professional Tax payment

Professional Tax registration-status verification

Professional Tax-related forms and services

Who Needs Professional Tax Registration in Bihar?

An employer in Bihar who is responsible for paying salary or wages to employees liable to Professional Tax is required to obtain registration under the applicable Professional Tax provisions.

The Bihar registration framework covers employers such as:

Private Limited Companies

Public Limited Companies

Partnership Firms

LLPs

Sole Proprietorships

HUFs

Societies

Associations

Other eligible employers

The Bihar Commercial Taxes Department’s registration guide states that Professional Tax registration is required for every employer in the State, while enrolment applies to persons liable to Professional Tax other than salaried persons whose tax is payable through their employer.

Bihar Professional Tax Registration – Employer Process

The registration application is submitted electronically through the Bihar Commercial Taxes Department.

Under the Bihar Professional Tax Rules, an employer required to register is required to apply within seven days of becoming liable for registration. The application is made in Form PT-I.

Basic registration process

Step 1 – Determine Applicability

First determine whether the business has employees who are liable to Professional Tax under the applicable Bihar provisions.

Step 2 – Prepare Documents

Commonly required documents/information may include:

PAN

TAN, where applicable

Business constitution documents

Employer’s address proof

Identity proof

Bank account details

Photographs

Employee/salary details, wherever required

The exact document requirements should be verified against the current Bihar Commercial Taxes Department requirements.

Step 3 – Submit Form PT-I

The employer submits the Professional Tax registration application electronically through the Bihar Commercial Taxes Department portal.

Step 4 – Verification and Registration

After submission, the application is processed by the concerned tax authority.

The Bihar Rules provide for approval and issuance of the registration certificate electronically. The registration number is linked to the employer’s tax identification details in the manner prescribed under the Rules.

Bihar Professional Tax Slabs

The applicable Professional Tax is based on the prescribed income/salary slabs.

For commonly referenced Bihar salary slabs, the annual liability is structured broadly as follows:

Annual Salary / Income	Professional Tax
Up to ₹3,00,000	Nil
₹3,00,001 – ₹5,00,000	₹1,000 per year
₹5,00,001 – ₹10,00,000	₹2,000 per year
Above ₹10,00,000	₹2,500 per year

The applicable slab should always be verified against the current statutory schedule and notifications before making deductions.

How Does an Employer Deduct Professional Tax in Bihar?

The employer is responsible for deducting the applicable Professional Tax from the employee’s salary where required.

Under the Bihar Professional Tax Rules, the employer deducts the tax payable by the employee from salary/wages for the month of September of each year. Where an employee becomes liable later or becomes liable for a higher amount after September, the Rules provide for subsequent deduction from salary/wages in the specified circumstances.

Example

Suppose an employee is liable to Professional Tax of ₹2,000 for the year.

The employer should calculate and deduct the applicable amount in accordance with the Bihar rules and deposit the amount with the Government within the prescribed timeline.

Professional Tax deducted from an employee’s salary is generally treated separately from TDS under the Income-tax Act.

Bihar Professional Tax Payment Due Date

The Bihar Professional Tax Rules provide that the tax deducted from salary in September is to be deposited into the Government Treasury on or before 15 November following the month in which it was deducted.

Employers should maintain evidence of payment and ensure that the correct employee-wise deductions are properly recorded.

Bihar Professional Tax Return

Employers are also required to furnish the prescribed statement/return relating to Professional Tax deductions.

The Bihar Rules provide for Form PT-IV, containing details of the tax deducted during the year, including employee information, income, tax payable, and tax deducted. The statement is required to be furnished on or before the end of November every year.

The prescribed forms and online filing process should be checked on the Bihar Commercial Taxes Department portal before filing.

Bihar Professional Tax – Employer Compliance Calendar

Compliance	Indicative Timeline
Professional Tax Registration	Within prescribed registration timeline after liability arises
Deduction from Salary	Generally September
Deposit of Tax	On or before 15 November
Annual Statement/Return	On or before end of November
Additional deduction	As applicable where liability arises/changes after September

Employers should verify any amendments, notifications, or changes issued by the Bihar Commercial Taxes Department for the relevant year.

Professional Tax in Delhi – Is Registration Required?

Delhi does not currently impose Professional Tax.

Unlike Bihar, Delhi has not enacted a Professional Tax law imposing this tax on employees or employers. Consequently, an employer operating solely in Delhi generally does not need to:

Obtain Professional Tax registration in Delhi

Deduct Professional Tax from employee salaries

Deposit Professional Tax with the Delhi Government

File Professional Tax returns in Delhi

Current 2026 compliance references also confirm that Delhi has no Professional Tax regime.

What if a Company Has Employees in Both Bihar and Delhi?

This is an important issue for companies having employees in multiple States.

Suppose a company has:

Head Office in Delhi

Branch Office in Patna, Bihar

Employees working in both locations

The company should not assume that the Delhi treatment automatically applies to Bihar.

The employer should separately examine the Professional Tax obligations applicable to employees working in Bihar.

Example

Delhi Employee

Professional Tax: Not applicable in Delhi.

Bihar Employee

Professional Tax: Applicable subject to the employee’s liability under Bihar law.

Therefore, payroll systems should be configured separately for different States where required.

Professional Tax vs Income Tax TDS

Professional Tax and Income Tax TDS are two different statutory deductions.

Particulars	Professional Tax	Income Tax TDS
Nature	State tax	Central tax
Authority	State Government	Central Government
Applicability	Depends on State	Depends on Income-tax provisions
Delhi	Not applicable	Applicable where conditions are met
Bihar	Applicable under State law	Applicable where conditions are met
Deducted from Salary	Where applicable	Where applicable
Maximum PT	₹2,500 per year generally	No equivalent fixed annual ceiling

Employers should ensure that Professional Tax is not confused with TDS on salary.

Professional Tax and Income Tax Deduction

Professional Tax paid by an employee is generally eligible for deduction under the Income-tax Act, subject to the applicable provisions.

Therefore, where Professional Tax is deducted from salary, the employer should ensure that the payroll and Form 16 reporting are correctly aligned with the applicable income-tax provisions.

Documents Generally Required for Bihar Professional Tax Registration

Depending on the constitution and circumstances of the business, the following documents/information may be required:

For Companies

Certificate of Incorporation

PAN of the company

TAN

MOA and AOA

Registered office/business address proof

Bank account details

Details of authorised person

Employee/salary details, wherever required

For Partnership Firms / LLPs

Partnership Deed / LLP Agreement

PAN

Address proof

Bank details

Partner details

Employee information

For Proprietorships

Proprietor’s PAN

Proprietor’s identity proof

Address proof

Bank details

Business details

Employee/salary details, wherever applicable

The exact documentation may vary depending on the application and current departmental requirements.

Common Professional Tax Compliance Mistakes

Employers should avoid the following mistakes:

Assuming Professional Tax Applies Everywhere

Professional Tax is State-specific. Delhi and Bihar have different regimes.

Not Registering in Bihar

An employer becoming liable under Bihar law should complete registration within the prescribed timeline.

Incorrect Salary Slab

The Professional Tax deduction should correspond to the applicable statutory slab.

Missing the September Deduction

Employers should monitor the statutory deduction requirement for September.

Delayed Payment

Professional Tax deducted from employees should be deposited within the prescribed timeline.

Failure to File the Prescribed Statement

Payment alone may not complete the compliance requirement. The employer should also furnish the applicable statement/return.

Incorrect Payroll Configuration

Businesses operating in multiple States should ensure that payroll software correctly identifies the employee’s applicable State.

Penalties and Consequences of Non-Compliance

Failure to comply with applicable Professional Tax requirements may result in:

Interest on delayed payment

Late fees

Penalties

Recovery proceedings

Notices from the concerned authority

The exact consequences depend upon the nature and duration of the default and the applicable State law.

Businesses should therefore maintain proper records of:

Employee salary

Professional Tax deducted

Tax deposited

Returns/statements filed

Registration certificate

Payment challans

Employee-wise calculations

Professional Tax Compliance Checklist for Employers

Bihar Employers

Determine Professional Tax applicability

Obtain Professional Tax registration

Maintain employee salary records

Calculate applicable Professional Tax

Deduct Professional Tax as prescribed

Deposit Professional Tax within the due date

File the prescribed annual statement/return

Maintain challans and supporting records

Update employee records when salary/liability changes

Delhi Employers

Confirm that Professional Tax is not applicable

Do not deduct Delhi Professional Tax from employee salaries

No Delhi Professional Tax registration is generally required

Monitor Professional Tax obligations separately if employees work in other States

Frequently Asked Questions

Is Professional Tax applicable in Bihar in 2026?

Yes. Bihar has a Professional Tax law under the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011. Employers and other persons should evaluate their registration and payment obligations under the applicable provisions.

Is Professional Tax applicable in Delhi?

No. Delhi currently does not levy Professional Tax. Therefore, employers in Delhi generally do not need Professional Tax registration, deduction, or return filing.

Who is responsible for deducting Professional Tax in Bihar?

Where an employee is liable to Professional Tax and the employer is responsible for salary/wage disbursement, the employer is responsible for deducting the applicable tax and complying with the prescribed payment and reporting requirements.

What is the Bihar Professional Tax registration form?

The employer’s registration application is made through Form PT-I under the Bihar Professional Tax Rules.

What is Form PT-IV?

Form PT-IV is the prescribed statement containing details of Professional Tax deducted from employees during the year. The Bihar Rules prescribe its filing by the end of November.

Does a Delhi company need Professional Tax registration if it has employees in Bihar?

The company should examine its Bihar-specific obligations if it employs persons liable to Professional Tax in Bihar. The absence of Professional Tax in Delhi does not remove obligations arising under another State’s Professional Tax law.

Conclusion

Professional Tax compliance can differ significantly from one State to another.

For employers in Bihar, Professional Tax registration, employee-wise deduction, payment, and prescribed return/statement filing are important compliance requirements under the Bihar Professional Tax framework.

For employers operating in Delhi, Professional Tax is currently not applicable, and there is generally no requirement to register, deduct, pay, or file Professional Tax returns in Delhi.

Businesses with employees or establishments across multiple States should review their payroll State-wise rather than applying a single Professional Tax treatment to all employees.

Maintaining accurate employee records, configuring payroll correctly, monitoring statutory deadlines, and reviewing State-specific requirements can help employers avoid unnecessary notices, interest, and penalties.