BR state taxes in Bihar

Professional tax in Bihar

Bihar levies professional tax on employees and on persons carrying on a trade or profession, capped at Rs 2,500 a year by the constitutional limit and assessed annually. Employers register to deduct and remit employees' professional tax on the state slab and a self-employed person or business enrols for their own. The employee deduction is available only to an old-regime taxpayer, not under the default new regime.

Bihar professional tax is capped at Rs 2,500 a year (employer deducts / self-employed enrol, usually annual); the employee deduction applies only on the old regime. (Bihar Tax on Professions, Trades, Callings and Employments Act 2011; Constitution Article 276 (Rs 2,500 cap))

Stamp duty and registration on property

Bihar property stamp duty is broadly in the region of 6% plus a registration fee of around 2%, with a concession where land or property is transferred to a woman (for example a man-to-woman transfer attracting a reduced combined rate). Stamp duty also applies to business documents such as lease and partnership deeds. Rates are state-set and revised periodically, so verify the current figure against the Bihar registration department before a transaction.

Bihar property stamp duty is broadly around 6% plus a registration fee of about 2%, with a concession on transfers to women; verify current rates against the state department. (Indian Stamp Act 1899 as applicable in Bihar + state amendments; verify against the Bihar Department of Registration)

Worked example

Manoj — Patna, BR

construction-materials trader registering for professional tax and buying a yard (2026-27)

Manoj runs a construction-materials trading business in Patna with staff and buys a storage yard.

He enrols for his own professional tax (capped at Rs 2,500 a year, paid annually) and deducts staff professional tax. On the yard purchase he budgets for stamp duty of broadly 6% plus a 2% registration fee, and checks whether registering in a family member's name attracts the women-transfer concession, confirming current figures with the registration department. If he is on the old regime the professional tax he pays is deductible; on the new regime it is not.