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Introduction

It is a state-imposed tax on salaried employees, professionals, and business owners in Odisha, with compliance essential in cities such as Bhubaneshwar, Cuttack, Puri, Brahmpur, Rourkela and Sambalpur. Under the Odisha State Tax on Professions, Trades, Callings, and Employment Act, 2000, the Odisha Government levies PT. Salaried employees, individuals who are self-employed, and business owners are all subject to the tax. In this article we will get a complete understanding over the Professional tax in Odisha including its applicability, types, documents, registration and filing process, due date and penalties. Whether you are a business or an individual, Bizfoc will help you navigate the complexities of professional tax, from registration to filing.

Who is Responsible for deducting Professional Tax in Odisha?

Below mentioned two categories are responsible for deducting and remitting professional tax in Odisha:

  • Employers: As per the Odisha PT Act, any employers (Organizations & Businesses) who have salaried employees in their company or organization must deduct professional tax from the employees salaried every month. This deduction amount is remitted to the State Government (Odisha Government). If the employer fails to deduct and remit professional tax to the government, they face penalties.
  • Self-Employed Individuals: As per the Odisha PT Act, any individuals (Professionals, traders, freelancers, business owners, ect) who earns above the prescribed threshold are responsible for ducting Professional tax Odisha. For this He/she must register themselves and obtain a PTEC (Professional Tax Enrollment Certificate) first. Professional Tax payments for self-employed persons in Odisha are mainly made yearly.

Different Types of Professional Tax Certificate

There are two types of PT certificate. These are as follow:

  • Professional Tax Enrollment Certificate (PTEC):
    The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies , partnership forms , sole proprietors and individual professionals. It is required to pay professional tax for both the business entity and its directors.
  • Professional Tax Registration Certificate (PTRC):
    The Professional Tax Registration Certificate commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee salary and then deposit the same to the authorized state authority.

Exemptions for Professional Tax in Odisha Online

As per the Odisha PT Act ( Odisha State Tax on Professions, Trades, Callings, and Employment Act, 2000), only Armed Forces personnel are exempted from paying Professional tax.

Document Required for Professional Tax Registration Odisha

The applicant shall produce/provide the following documents along with the application for Professional Tax Registration -

  1. Photo
  2. PAN Card (Photocopy)
  3. Trade certificate (example - GST)
  4. Rent Agreement (Photocopy)
  5. Salary/wage statement of the employees
  6. Current bank account copy of the employer/organization/company
  7. MoU or Partnership deed
  8. Other required documents etc

Stepwise process of Professional Tax Registration and Filing in Odisha

Before Professional tax filing, a company or individual must register themselves. The stepwise process is as follow:

Process of Professional Tax Registration in Odisha

Step 1: Visit to the “Odisha Commercial Taxes Department’s Official Portal”.

Step 2: After selecting the appropriate option and filling it accurately with relevant details and information including business or personal details, employee details (only for employers) profession and income.

Step 3: Attach all the required documents (listed above) to complete the registration process.

Step 4: After this form submission, once the government verifies all the details will issue a certificate.

Process of Professional Tax Filing in Odisha

Step 1: Log in to the Odisha Commercial Taxes Department’s Official Portal Odisha Commercial Taxes Department’s Official Portal using the credentials created during registration.

Step 2: Select the relevant filing period (monthly for employers, annually for self-employed individuals).

Step 3: Enter all the details such as income or employee salary details (for employers) and the corresponding professional tax payable. For employers, the tax will be automatically calculated based on salary slabs.

Step 4: Generate the payment challan and make the payment using online banking or other available payment methods.

Step 5: Submit the return online after completing the payment. Ensure that the return is filed before the due date to avoid penalties.

Professional Tax in Odisha Tax slab

The complete tax slab of Professional Tax Odisha mentioned below:

Category of Persons Liable to Pay Professions Tax Rate of Professions Tax based on Annual Gross Income / Salary / Wages
Less than 1.6 lakh Between 1.6 to 3 lakh Above 3 lakh
Salary and Wage earners: Such persons including Ministers, Members of Legislative Assembly, and Members of Parliament from the State of Orissa Nil Rs 125/- per month Rs. 200/- per month for the first 11 months and Rs. 300/- for the last month
Medical Practitioners including Medical Consultants, Dentists, Radiologists, Pathologists, and persons engaged in similar professions or paramedical nature Nil Rs. 1500/- per annum per person Rs. 1500/- per annum per person
Legal Practitioners including Solicitors and Notaries Public
Postal agents under National Savings Scheme or Chief Agents, Principal Agents, Special Agents, Insurance Agents, Surveyors, and Loss Assessors registered or licensed under the Insurance Act, 1938
Estate Agents, Promoters, Brokers or Commission Agents, Del Credere Agents or Mercantile Agents
Technical and Professional Consultants including RCC Consultants, Architects, Engineers, Actuaries, Management Consultant, Tax Consultants, Chartered Accountants and Cost Accountants

Professional Tax in Odisha Due Dates

Individuals who enrolled before 31st May should pay their Profession Tax by 30th June of the same year, whereas those who enrolled after 31st May must pay the tax within one month of enrolment. Tax returns and TDS statements must be filed monthly by employers along with the due tax payments.

Penalties with Respect to Professional Tax in Odisha

The below mentioned are the applicable penalties:

Particulars Penalties
Delay Payment Penalty An assessee failing to register on time can cause a penalty of ₹20/- per day for employers and ₹5/- per day for others, after being given a chance to explain.
Failure to Register A self-employed individual or employer who does not register for professional tax within the 90 days may be penalized with a fine and interest.

Why to Choose Bizfoc?

Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.

Conclusion

The aspect of professional tax in Odisha plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax which is to be done by the employers of any profession or trade towards the respective legislation.

Frequently Asked Questions

Odisha State Commercial Taxes Department is responsible for regulating professional tax in Odisha.

The main difference between PTRC and PTEC is - PTRC is for employers; PTEC is for self-employed individuals or business owners.

If you are an employer and deduct Professional Tax (as per applicable rates) from the salary of your employees, you are required to deposit the amount deducted from the salary of your employees every month.

Yes, self-employed individuals or professionals must pay professional tax annually to the state government.

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