Patna: Bihar Assembly passed a legislation under which officers and employees of the Centre and state would come under the ambit of professional tax.

Salaried professionals earning more than Rs 3 lakh per annum would come under the ambit of the legislation modeled on the lines of similar laws in Maharashtra, West Bengal and other states, official sources said on Tuesday.

The state assembly adopted the Bihar Profession, Trade, Livelihood and Employment Tax Bill, 2011 on Monday, paving the way for the imposition of the tax.

According to sources, the bill will come into force from the date of its notification in the state gazette.
Those earning between Rs 3 lakh and Rs 5 lakh would pay an annual professional tax of Rs 1,000 while those earning between 5 lakh and Rs 10 lakh will have to pay Rs 2,000.

Employees getting above Rs 10 lakh per annum will pay Rs 2500, the sources said.

Employers will collect the professional tax from salaried people working in private firms or government departments as per the TDS (Tax Deducted at source) module. Self-employed professionals like doctors, lawyers and accountants would also be brought into the tax net.

Under the provisions of the new legislation, the commercial taxes department would be the nodal body to collect the tax instead of municipal bodies, which were earlier assigned to collect the tax in their respective domains.

In case of default, an employee would be liable to a fine of two per cent at simple interest rate per month on the outstanding amount, the sources said.

The employer or an employee would be liable for three months simple imprisonment or a fine of Rs 5,000 in case of violation of the rules without citing any valid reason, the sources added.

(JPN/ Bureau)