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Professional tax in Punjab

Get the latest information about professional tax slab rates applicable in Punjab for the individuals based on their profession and income level.

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It is a direct tax imposed on individuals by specific states on the individuals based on their income level. This tax is imposed on salaried employees, self-employed individuals, entrepreneurs, professionals such as doctors, engineers, consultants and all those individuals who are registered under the Income Tax Act of 1961. The maximum amount of professional tax an individual has to pay in Punjab is ₹ 2,500.

Punjab Professional Tax Act

This tax is charged on individuals engaged in profession, business, employment or any kind of trade as per the Punjab State Development Tax, 2018. This tax came into effect on April 19, 2018. The amount of tax collected by the Punjab government is used for the welfare of people in Punjab. This tax is applicable throughout the state of Punjab.

Slab Rate of Professional Tax in Punjab

The amount of tax imposed on any individual depends on the level of income they earn. Below is the table showing the slab rate of professional tax applicable in Punjab:

Monthly Income Payable Tax Amount
Upto ₹ 7,500 Nil
₹ 7,501 to ₹ 10,000 ₹ 175
Above ₹ 10,000 ₹ 2,500 per annum
Source: Cleartax

Applicability of Professional Tax in Punjab

Let’s have a look at the applicability of professional tax in Punjab. The different categories of individuals who are liable to pay professional tax are:

  • Those individuals who are working in any organization that runs its operations in Punjab and is controlled by either the state or central government of Punjab.
  • Individuals who are working in government entities and receive salary from either the State or Central Government
  • The employees who are working in any organization which is running its operations either in Punjab or outside the Punjab but they are controlled by the Punjab government
  • Employees working in government entities who have their offices in the Punjab or outside but they are operated by the Punjab government
  • Individuals working in government entities who have their offices in Punjab or outside but are operated by the Punjab government
  • Professional tax in Punjab is also imposed on business partnerships, HUFs (Hindu Undivided Families), corporations and various other clubs

Exemption of Professional Tax in Punjab

Certain categories of individuals are exempted from paying the professional tax in Punjab. These categories are:

  • Those individuals who are engaged in farming or related activities in Punjab are exempted from paying professional tax
  • Individuals above 65 years of age
  • Individuals who are earning casual wages in the Punjab

How to pay Professional Tax in Punjab?

The employers are required to pay the professional tax on behalf of their employees as they deduct a certain amount from the salary of the employee. Self-employed individuals or business owners are required to submit the tax by themselves to the state government. Here is the series of steps an individual has to follow while paying professional tax in Punjab:

  • First of all, you are required to visit the official website of the “Punjab State Development Tax Portal” and log in with credentials such as username and password
  • Then choose the option of “Challan” and provide the necessary details such as month, year and number of employees whose tax has to be paid. Then click on “Request Challan” and follow the on-screen instructions provided
  • Then choose the desired “Mode of payment” such as UPI, Debit or Credit card etc. Make the payment and a receipt will appear. You can save this receipt for future reference

Due Date of Professional Tax in Punjab

The due date for the payment of professional tax in Punjab can vary for the individual as it depends on the date on which an individual has been enrolled. The due date of professional tax is within one month from the enrollment of individuals. Suppose an individual enrolls on the portal of the Punjab government on May 30 then they are required to pay the tax amount by June 30. 

Penalty on Late Payment of Professional Tax

Individuals in Punjab are required to pay professional tax before the due date otherwise a hefty penalty will be imposed on the amount due. If an individual fails to pay the tax amount before the date a penalty of 2% at simple interest on the outstanding amount will be imposed for every month.

FAQs (Frequently Asked Questions)

Yes, like other states professional tax is compulsory in Punjab for earning individuals. Those individuals who are earning monthly income of more than ₹ 10,000 are eligible to pay in Punjab. 

The minimum amount of tax an individual has to pay in Punjab is ₹ 175 and this amount is paid on monthly salary between ₹ 7,500 and ₹ 10,000.

Those individuals who are engaged in farming and related activities are exempted from paying professional tax in Punjab.

An individual in Punjab can pay professional tax through the official portal of Punjab government.

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