Patna:In a decision that could put people of Bihar in a little distress, the state government has decided to levy professional tax on all drawing more than three lakh annual income. The state Cabinet has given its assent to the proposal. JPN\ Bureau
Chief Secretary (Commercial Taxes) Rajit Punhani informed that every individual,whether working for a public or private enterprise and withdrawing more than three lakh annual salary will have to pay this tax.
Professionals like doctors,advocates and businessmen will also have to enroll themselves under the tax net. Their pan number will be considered as their enrollment number.
Every year a deduction on their salary will be made on the pattern of TDS.
Employees will be paid their monthly salary after levying TDS whereas professionals like doctors, engineers and businessmen will need to put their nominations themselves and will have to file their returns like paying income taxes which they will deposit in treasury.
Documents will soon be dispatched to private companies as to give information about how much TDS they have been deducted.
Under this,those people whose income stand between 3-5 lakh per anum will have to pay Rs 1000 whereas those in the range of 5-10 lakh income per anum will have to pay Rs 2000 and those above 10 lakh will be levied tax in the range of Rs 2500.
Those violating the norms will be penalized and they will be served either three month prison term or will be charged a penalty of Rs 5000.
In case of showing perpetual lapse in tax payment,Rs 50 per day penalty will be charged from them.
Patna:In a decision that could put people of Bihar in a little distress, the state government has decided to levy professional tax on all drawing more than three lakh annual income. The state Cabinet has given its assent to the proposal.