Introduction<\/p>\n
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.<\/p>\n
For employers operating in Bihar and Delhi, this distinction is particularly important:<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
What is Professional Tax?<\/p>\n
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.<\/p>\n
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.<\/p>\n
The maximum amount that can generally be imposed as Professional Tax under Article 276 of the Constitution is \u20b92,500 per person per year.<\/p>\n
The actual applicability, slab rates, exemptions, registration requirements, and filing procedures depend upon the law of the relevant State.<\/p>\n
Professional Tax in Bihar<\/p>\n
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.<\/p>\n
Employers in Bihar should therefore evaluate whether they are required to obtain Professional Tax registration and deduct Professional Tax from employees.<\/p>\n
The Bihar Commercial Taxes Department specifically provides facilities for:<\/p>\n
Professional Tax registration<\/p>\n
Professional Tax payment<\/p>\n
Professional Tax registration-status verification<\/p>\n
Professional Tax-related forms and services<\/p>\n
Who Needs Professional Tax Registration in Bihar?<\/p>\n
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.<\/p>\n
The Bihar registration framework covers employers such as:<\/p>\n
Private Limited Companies<\/p>\n
Public Limited Companies<\/p>\n
Partnership Firms<\/p>\n
LLPs<\/p>\n
Sole Proprietorships<\/p>\n
HUFs<\/p>\n
Societies<\/p>\n
Associations<\/p>\n
Other eligible employers<\/p>\n
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.<\/p>\n
Bihar Professional Tax Registration \u2013 Employer Process<\/p>\n
The registration application is submitted electronically through the Bihar Commercial Taxes Department.<\/p>\n
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.<\/p>\n
Basic registration process<\/p>\n
Step 1 \u2013 Determine Applicability<\/p>\n
First determine whether the business has employees who are liable to Professional Tax under the applicable Bihar provisions.<\/p>\n
Step 2 \u2013 Prepare Documents<\/p>\n
Commonly required documents\/information may include:<\/p>\n
PAN<\/p>\n
TAN, where applicable<\/p>\n
Business constitution documents<\/p>\n
Employer’s address proof<\/p>\n
Identity proof<\/p>\n
Bank account details<\/p>\n
Photographs<\/p>\n
Employee\/salary details, wherever required<\/p>\n
The exact document requirements should be verified against the current Bihar Commercial Taxes Department requirements.<\/p>\n
Step 3 \u2013 Submit Form PT-I<\/p>\n
The employer submits the Professional Tax registration application electronically through the Bihar Commercial Taxes Department portal.<\/p>\n
Step 4 \u2013 Verification and Registration<\/p>\n
After submission, the application is processed by the concerned tax authority.<\/p>\n
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.<\/p>\n
Bihar Professional Tax Slabs<\/p>\n
The applicable Professional Tax is based on the prescribed income\/salary slabs.<\/p>\n
For commonly referenced Bihar salary slabs, the annual liability is structured broadly as follows:<\/p>\n The applicable slab should always be verified against the current statutory schedule and notifications before making deductions.<\/p>\n How Does an Employer Deduct Professional Tax in Bihar?<\/p>\n The employer is responsible for deducting the applicable Professional Tax from the employee’s salary where required.<\/p>\n 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.<\/p>\n Example<\/p>\n Suppose an employee is liable to Professional Tax of \u20b92,000 for the year.<\/p>\n 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.<\/p>\n Professional Tax deducted from an employee’s salary is generally treated separately from TDS under the Income-tax Act.<\/p>\n Bihar Professional Tax Payment Due Date<\/p>\n 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.<\/p>\n Employers should maintain evidence of payment and ensure that the correct employee-wise deductions are properly recorded.<\/p>\n Bihar Professional Tax Return<\/p>\n Employers are also required to furnish the prescribed statement\/return relating to Professional Tax deductions.<\/p>\n 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.<\/p>\n The prescribed forms and online filing process should be checked on the Bihar Commercial Taxes Department portal before filing.<\/p>\n Bihar Professional Tax \u2013 Employer Compliance Calendar<\/p>\n Employers should verify any amendments, notifications, or changes issued by the Bihar Commercial Taxes Department for the relevant year.<\/p>\n Professional Tax in Delhi \u2013 Is Registration Required?<\/p>\n Delhi does not currently impose Professional Tax.<\/p>\n 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:<\/p>\n Obtain Professional Tax registration in Delhi<\/p>\n Deduct Professional Tax from employee salaries<\/p>\n Deposit Professional Tax with the Delhi Government<\/p>\n File Professional Tax returns in Delhi<\/p>\n Current 2026 compliance references also confirm that Delhi has no Professional Tax regime.<\/p>\n What if a Company Has Employees in Both Bihar and Delhi?<\/p>\n This is an important issue for companies having employees in multiple States.<\/p>\n Suppose a company has:<\/p>\n Head Office in Delhi<\/p>\n Branch Office in Patna, Bihar<\/p>\n Employees working in both locations<\/p>\n The company should not assume that the Delhi treatment automatically applies to Bihar.<\/p>\n The employer should separately examine the Professional Tax obligations applicable to employees working in Bihar.<\/p>\n Example<\/p>\n Delhi Employee<\/p>\n Professional Tax: Not applicable in Delhi.<\/p>\n Bihar Employee<\/p>\n Professional Tax: Applicable subject to the employee’s liability under Bihar law.<\/p>\n Therefore, payroll systems should be configured separately for different States where required.<\/p>\n Professional Tax vs Income Tax TDS<\/p>\n Professional Tax and Income Tax TDS are two different statutory deductions.<\/p>\n Employers should ensure that Professional Tax is not confused with TDS on salary.<\/p>\n Professional Tax and Income Tax Deduction<\/p>\n Professional Tax paid by an employee is generally eligible for deduction under the Income-tax Act, subject to the applicable provisions.<\/p>\n 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.<\/p>\n Documents Generally Required for Bihar Professional Tax Registration<\/p>\n Depending on the constitution and circumstances of the business, the following documents\/information may be required:<\/p>\n For Companies<\/p>\n Certificate of Incorporation<\/p>\n PAN of the company<\/p>\n TAN<\/p>\n MOA and AOA<\/p>\n Registered office\/business address proof<\/p>\n Bank account details<\/p>\n Details of authorised person<\/p>\n Employee\/salary details, wherever required<\/p>\n For Partnership Firms \/ LLPs<\/p>\n Partnership Deed \/ LLP Agreement<\/p>\n PAN<\/p>\n Address proof<\/p>\n Bank details<\/p>\n Partner details<\/p>\n Employee information<\/p>\n For Proprietorships<\/p>\n Proprietor’s PAN<\/p>\n Proprietor’s identity proof<\/p>\n Address proof<\/p>\n Bank details<\/p>\n Business details<\/p>\n Employee\/salary details, wherever applicable<\/p>\n The exact documentation may vary depending on the application and current departmental requirements.<\/p>\n Common Professional Tax Compliance Mistakes<\/p>\n Employers should avoid the following mistakes:<\/p>\n Professional Tax is State-specific. Delhi and Bihar have different regimes.<\/p>\n An employer becoming liable under Bihar law should complete registration within the prescribed timeline.<\/p>\n The Professional Tax deduction should correspond to the applicable statutory slab.<\/p>\n Employers should monitor the statutory deduction requirement for September.<\/p>\n Professional Tax deducted from employees should be deposited within the prescribed timeline.<\/p>\n Payment alone may not complete the compliance requirement. The employer should also furnish the applicable statement\/return.<\/p>\n Businesses operating in multiple States should ensure that payroll software correctly identifies the employee’s applicable State.<\/p>\n Penalties and Consequences of Non-Compliance<\/p>\n Failure to comply with applicable Professional Tax requirements may result in:<\/p>\n Interest on delayed payment<\/p>\n Late fees<\/p>\n Penalties<\/p>\n Recovery proceedings<\/p>\n Notices from the concerned authority<\/p>\n The exact consequences depend upon the nature and duration of the default and the applicable State law.<\/p>\n Businesses should therefore maintain proper records of:<\/p>\n Employee salary<\/p>\n Professional Tax deducted<\/p>\n Tax deposited<\/p>\n Returns\/statements filed<\/p>\n Registration certificate<\/p>\n Payment challans<\/p>\n Employee-wise calculations<\/p>\n Professional Tax Compliance Checklist for Employers<\/p>\n Bihar Employers<\/p>\n Determine Professional Tax applicability<\/p>\n Obtain Professional Tax registration<\/p>\n Maintain employee salary records<\/p>\n Calculate applicable Professional Tax<\/p>\n Deduct Professional Tax as prescribed<\/p>\n Deposit Professional Tax within the due date<\/p>\n File the prescribed annual statement\/return<\/p>\n Maintain challans and supporting records<\/p>\n Update employee records when salary\/liability changes<\/p>\n Delhi Employers<\/p>\n Confirm that Professional Tax is not applicable<\/p>\n Do not deduct Delhi Professional Tax from employee salaries<\/p>\n No Delhi Professional Tax registration is generally required<\/p>\n Monitor Professional Tax obligations separately if employees work in other States<\/p>\n Frequently Asked Questions<\/p>\n 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.<\/p>\n No. Delhi currently does not levy Professional Tax. Therefore, employers in Delhi generally do not need Professional Tax registration, deduction, or return filing.<\/p>\n 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.<\/p>\n The employer’s registration application is made through Form PT-I under the Bihar Professional Tax Rules.<\/p>\n 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.<\/p>\n 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.<\/p>\n Conclusion<\/p>\n Professional Tax compliance can differ significantly from one State to another.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n Maintaining accurate employee records, configuring payroll correctly, monitoring statutory deadlines, and reviewing State-specific requirements can help employers avoid unnecessary notices, interest, and penalties.<\/p>\n","protected":false},"excerpt":{"rendered":" Learn about Professional Tax registration, salary deduction, payment and return filing requirements for employers in Bihar and Delhi in 2026, including Bihar PT slabs, due dates.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-952","post","type-post","status-publish","format-standard","hentry","category-licenses-registration"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=952"}],"version-history":[{"count":2,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/952\/revisions"}],"predecessor-version":[{"id":1519,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/952\/revisions\/1519"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\n
\n \nAnnual Salary \/ Income<\/th>\n Professional Tax<\/th>\n<\/tr>\n<\/thead>\n \n Up to \u20b93,00,000<\/td>\n Nil<\/td>\n<\/tr>\n \n \u20b93,00,001 \u2013 \u20b95,00,000<\/td>\n \u20b91,000 per year<\/td>\n<\/tr>\n \n \u20b95,00,001 \u2013 \u20b910,00,000<\/td>\n \u20b92,000 per year<\/td>\n<\/tr>\n \n Above \u20b910,00,000<\/td>\n \u20b92,500 per year<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n \n\n
\n \nCompliance<\/th>\n Indicative Timeline<\/th>\n<\/tr>\n<\/thead>\n \n Professional Tax Registration<\/td>\n Within prescribed registration timeline after liability arises<\/td>\n<\/tr>\n \n Deduction from Salary<\/td>\n Generally September<\/td>\n<\/tr>\n \n Deposit of Tax<\/td>\n On or before 15 November<\/td>\n<\/tr>\n \n Annual Statement\/Return<\/td>\n On or before end of November<\/td>\n<\/tr>\n \n Additional deduction<\/td>\n As applicable where liability arises\/changes after September<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n \n\n
\n \nParticulars<\/th>\n Professional Tax<\/th>\n Income Tax TDS<\/th>\n<\/tr>\n<\/thead>\n \n Nature<\/td>\n State tax<\/td>\n Central tax<\/td>\n<\/tr>\n \n Authority<\/td>\n State Government<\/td>\n Central Government<\/td>\n<\/tr>\n \n Applicability<\/td>\n Depends on State<\/td>\n Depends on Income-tax provisions<\/td>\n<\/tr>\n \n Delhi<\/td>\n Not applicable<\/td>\n Applicable where conditions are met<\/td>\n<\/tr>\n \n Bihar<\/td>\n Applicable under State law<\/td>\n Applicable where conditions are met<\/td>\n<\/tr>\n \n Deducted from Salary<\/td>\n Where applicable<\/td>\n Where applicable<\/td>\n<\/tr>\n \n Maximum PT<\/td>\n \u20b92,500 per year generally<\/td>\n No equivalent fixed annual ceiling<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Assuming Professional Tax Applies Everywhere<\/h2>\n
Not Registering in Bihar<\/h2>\n
Incorrect Salary Slab<\/h2>\n
Missing the September Deduction<\/h2>\n
Delayed Payment<\/h2>\n
Failure to File the Prescribed Statement<\/h2>\n
Incorrect Payroll Configuration<\/h2>\n
Is Professional Tax applicable in Bihar in 2026?<\/h2>\n
Is Professional Tax applicable in Delhi?<\/h2>\n
Who is responsible for deducting Professional Tax in Bihar?<\/h2>\n
What is the Bihar Professional Tax registration form?<\/h2>\n
What is Form PT-IV?<\/h2>\n
Does a Delhi company need Professional Tax registration if it has employees in Bihar?<\/h2>\n