All you want to know about The Punjab State Development Tax Act, 2018 (Professional Tax)
Date of enactment of Act: April 16, 2018
(However Rules, Forms, Portal for registration/ payment etc has not been prescribed by Govt.)
Who is liable to pay development tax?
Every employee or person doing business or profession in Punjab is liable to development tax if after deduction income is above maximum exemption limit i.e. Rs. 2,50,000/- at present as per Income Tax Act. Section 4 also mention ‘Income tax payee’ which creates confusion as Person with Total Income above Rs. 3,00,000/- is income tax payee due to rebate of Rs. 2500/- Secion 87A of Income Tax Act. Punjab State Govt should clarify the same.
Also Income to be seen is of same year for which development tax is to be paid. i.e. to pay development tax of FY 2018-19, Income of same year i.e. FY 2018-19 is to be seen.
Every business operated in Punjab state is liable for the same. No exemption will be allowed just because Head office is in different state.
Who will pay tax? (Section 5)
If an employee is employed from more than one employer then he can register himself u/s 6 under this act and give declaration to employers then employer is not liable to deduct his tax.
Registration (Section 6)
Who is required to register?
Who is not required to apply for register?
Employees are not liable to register because their employer is liable to register and deduct tax.
What is Last Date to apply for registration?
Within 60 days from date of Act i.e. before 15th June 2018 for existing persons. Persons who become liable in future due to start of new business or profession or increase in income will have to take registration within 30 days from which they are liable.
Penalty for failure to register can be imposed at Rs. 50/- per day
Payment of Tax (Section 10)
Employees’ tax will be deducted and paid monthly.
Tax by others will be paid once in a year within 30 days from date of registration.
Late deduction, Late Payment will attract simple interest @2% for every month or part of month.
Filing of Returns (Section 7)
Due date, Format, period of returns shall be as prescribed.
Penalty for failure to file returns can be imposed at Rs. 50/- per day
Assessment (Section 8, 9)
Filed returns will be accepted by designated officer else notice will be issued for assessment. Assessment can be done within 3 years (6 years in case of special circumstances as prescribed) from date of filing of return or due date whichever is later. Any additional demand shall have to be paid within 15 days.
Article by CA Shashi Bhushan, Jalandhar
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