THE PUNJAB STATE DEVELOPMENT TAX ACT, 2018
Date of Notification in the Official Gazette of Punjab Government : 19.04.2018
Date of received the assent of the Governor of Punjab: 16.04.2018
Official Website to Download the Act : http://www.punjab.gov.in/ under the heading Acts, Rules and Notifications
NOTE: This Act is applicable from the date of its publication in the Official Gazette i.e. 19th of April 2018 But the Rules, Online Portal for Registration , Payment and all other liked activities has not been prescribed by the Govt.
Total Number of Sections: 24
Schedule Prescribed: 1
Section Wise Summary
| Section | Particular | Detail |
| 1 | Short Title | This Act may be called the Punjab State Development Tax Act,2018 |
| 1 | Extent | It extends to the whole of the State of Punjab |
| 1 | Commencement | It shall come into force on and with effect from the date of its
publication in the Official Gazette. i.e. 19th April 2018 |
| 2 | Definitions | a) Income: As as defined in the Income Tax Act, 1961
b) Commissioner: Excise and Taxation Commissioner c) Person:Any person who is engaged in any Profession, Trade, Calling or Employment in the State of Punjab includes:
Person Exempt: 1. Person who earn Wages on casual basis 2. Person Engaged exclusively in Agricultural Activity 3. Senior Citizens Exempt as per Section No.4 d) Employer: Who is responsible for disbursement any salary or wages on a regular basis to an employee e) Employee: Who is employed on salary or wages, and a person engaged in any employment of an employer f) Salary or Wage : Includes Pay or Wages, Dearness Allowance and all other remunerations received by any person on Regular Basis, whether payable in cash or kind, and also includes Perquisites and Profits in lieu of salary as defined in section 17 of the Income Tax Act, 1961 *But not Includes Bonus or Gratuity |
| 3 | Appointment of Appellate Authority, Commissioner and other officers | – This Section Gives the Power to the Govt. for the Appointment of Appellate Authority, Commissioner and other officers,
– Commissioner shall have jurisdiction over the whole of the State of Punjab – Commissioner may delegate any of his powers and duties under this Act to any officer by order in writing Subject to such restrictions and conditions as may be prescribed |
| 4 | Levy and charge of tax. | *Every person, engaged in any profession, trade, calling or
employment and falling under any class mentioned in the Schedule, (Means Schedule to this Act Define Class of Person who is Liable to Pay Tax and Who is Exempt from Tax) Shall be liable to pay the tax at rates mentioned in the Schedule from time to time. (Means Schedule to this Act Mentioned the Rate of Tax) Senior citizens shall, however, be exempted as per the Income Tax Act, 1961 Where a person falls under more than one category in the Schedule, he shall be liable to pay the tax only under one category (Means No Double Taxation) Income Criteria: The tax, for any particular financial year, shall be payable under this Act only by those Persons whose Taxable income for the same financial year, before allowing deduction on account of tax levied under this Act,(Means Punjab Development Tax) exceeds the maximum amount which is not chargeable to Income Tax Note: Clarification About this Required from Punjab Govt. In Simple Words we can say that This Development Tax is Payable by those person whose income is exceeds the maximum amount which is not chargeable to Income Tax (i.e. Rs.250,000/-) |
| 5 | Employer’s liability to deduct and pay tax on behalf of employees | *It is the Duty of Employer to deduct tax and make payment to Govt.
*If an employee is employed with two or more employer then he can himself register under section 6 and pay the tax himself and give declaration about this to his employers * If an employee is employed with employer and has his own business also then also he can pay tax himself give declaration about this to his employer |
| 6 | Registration and enrolment | Sub Section 1: Every Employer liable to deduct and pay tax under this act shall obtain a Certificate of Registration from the designated officer within 60 days from then date of Commencement of this Act.
Sub Section 2: Other Person shall obtain a certificate of enrolment from the designated officer Sub Section 4: If a person start New Business or Profession or Whose income is more than limit in future date then he is Liable to Register or enroll within 30 Days from the date he is liable to pay tax |
| 7 | Returns | Format , Due Date and Period of Return is not prescribed yet |
| 8 | Assessment of employers. | This Section relates to Assessment after filling Return and gives all other powers to Officers calculate the liability and pass order to the best of his judgment |
| 9 | Assessment of other persons | This Section relates to Assessment after filling Return and gives all other powers to Officers to calculate the liability and pass order to the best of his judgment |
| 10 | Payment of tax | *Employer is liable to deduct and pay tax on Monthly Basis
*All other person liable to pay tax on Annually basis |
| 11 | Consequences of failure to deduct or to pay tax. | *If Employer fail to deduct or paid is liable to pay interest 2% per month
*Other Person fails to pay the tax is liable to pay interest 2% per month |
| 12 | Recovery of tax, interest and penalty as arrears of land revenue. | All arrears of tax, penalty and interest due under this Act from any person shall be recoverable as arrears of land revenue |
| 13 | Appeal | This section gives power to the person to appeal to the Appellate Authority against the order made under this Act
*Order passed by Officer appealable to the Appellate Authority *Order passed by Appellate Authority appealable to the Tribunal. -All Appeal Should be made with in 60 days from the date of receipt of the order. -Appeal can be made only after deposit the 50% of the demand |
| 14 | Revision. | Refer to Official Gazette |
| 15 | Rectification of mistakes and review of order | Refer to Official Gazette |
| 16 | Accounts. | Refer to Official Gazette |
| 17 | Production and inspection of accounts and documents and search of premises. | Refer to Official Gazette |
| 18 | Refund of excess payment | Refer to Official Gazette |
| 19 | Penalties. | *Delay in Registration or Enrollment: Rs.50/- per Day
*False Information: Rs.5000/- *Fail to File Return : Rs.50/- per Day *Fail to Pay Tax : 50% of the Amount of Tax Due *Willfully fails to maintain account and document : Rs.50/- per Day *Fails to comply with any of the provisions of this Act:Rs.5000/- + Rs.50/- per Day if default continue No penalty under this section shall be imposed without affording a reasonable opportunity of being heard to the assesse. |
| 20 | Offences by companies. | Where an offence under this Act has been committed by a company, every person who at the time when the offence was committed was in charge of, and was responsible for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and penalized accordingly |
| 21 | Power to enforce attendance | Refer to Official Gazette |
| 22 | Bar on proceedings. | Refer to Official Gazette |
| 23 | Power to make rules. | (1) The Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) The rules made under this Act, may be made either with prospective effect or with retrospective effect Provided that the rules shall be made under this Act with retrospective effect only if the same are required to be made in public interest. |
| 24 | Power to Remove difficulties. | If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order published in the Official Gazette make such provisions not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty
Provided that no such order shall be issued after three years from the date on which this Act comes into force. |
SCHEDULE
| S.No. | Class of persons | Rate of Tax |
| 1 | All such persons who are assessable under the Head Income from Salaries and/ or Wages as per the Income Tax Act, 1961. | Rs. 200/- per month |
| 2 | All such persons who are assessable under the Head Income from Business and/ or Profession as per the Income Tax Act, 1961. | Rs. 200/- per month |
Compiled by:
CA Nitin Arora
Jalandhar City
Contact: 90412-90416 , 98157-98294
Email: [email protected]
Author Bio
Please confirm
If my ctc salary is rs.23000/- and company deducted rs.1800/- pf own part and rs.1800/- from my part. After deduction my salary is rs.18100/- let me confirm that if company has power to deduct my professional tax.
How to change name of the company in Professional Tax, Punjab
i have to pay professional tax cash in sbi treasury branch ludhiana but they are refusing to accept the challan for the tme being is there any other alternative to pay tax
An employee having 0 earning due to LOP. Should we deduct PT or not? Working location is Mohali.
SIR,I HAVE APPLIED FOR REGISTRATION OF PUNJAB STATE DEVELOPMENT TAX BUT WRONGLY SELECT CATAGORY INDVIDUAL INSTEAD OF PVT.EMPLOYERS,KINDLY SUGEST
Our employees have about 20 to 25% salary as variable because of Overtime, production incentive etc. There are certain employees who are very close to Rs 2.5 lakh limit but can go over it depending on the variable pay received by them. In such cases how do we deduct Professional tax.
Secondly if an employee is over Rs 2.5 lakh but does not draw wages in a particular month as he was absent, in such a case are we required to deduct professional tax in the subsequent months.
what if employee yearly salary is more than 2.5 lakh and he is on leave for1 month due to this his net earning is less than 2.5 lakh, is employer required to deduct professional tax now ?
hello i jaswinder income tax return nil can i pay professional tax
Dear Sir,
Government department such as school did not have PAN number. Please clarify, how they will register under profession tax in Punjab. Can such organization register using PAN of head of department.
Thanks and regards,
Dear sir,
kindly tell me when we have to pay professional tax yearly return??
Whether HRA and standard deduction admissible to arrive at the sum of Rs.250000/-
Dear Sir,
Good Evening ! ! !
We need your help regarding professional tax deduction (Calculation) rules in Punjab State.
Punjab State Professional Tax Slab :
0 to 24999 = 0
25001 to above = 200
For Example : Month of Nov -2018
My Decided Gross Salary = 30000 /-
Total Payable Days = 15 (Present + Week-off + Holiday)
My Earning Gross Salary Prorate Basis = 30000 / 30 * 15 = 15000 Rs.(Payable Gross)
Answer 1 : Earning Payable Gross = 15000 – 200 = 14800 Rs.
Answer 2 : Earning Payable Gross = 15000 – 0 = 15000 Rs.
When my professional tax deduct 200 or 0 ?
Please give me replay or solution.
Thanks for your support and co-operation.
Aoa
Respected sir
i have a shop of photostat under CIN and GST registered fro FBR. I have one employee. how mush i will pay the Professional Tax?
PROFESSIONAL TAX TO BE DEDUCTED BY EMPLOYER IF EMPLOYEE HAVING A TAXABLE INCOME OR GROSS TOTAL INCOME
How to get the registration / enrollment under the Act? Is it available online ?
my salary only 22000 rs but my company deduct professional tax rs 200 per month
Please suggest me but can do
Can we Pay the State Development Tax (Punjab) ONLINE? If yes then please tell the procedure.
Dear Sir,
Is it applicable on employee having monthly salary Rs.23000/- ?
Please clear.
Thanks
has the procedure for registration started and if yes what is the procedure, where it is done??
How to get the registration / enrollment under the Act? Is it available online ?
Hi,
Will we get any tax benefit under Income Tax Act on account of payment of Professional Tax.
Hi,
i guess PT is payable only if taxable income (i.e. income calculated after allowing deductions under income tax act such as 80C, etc) exceeds 2.5 lacs.