Professional Tax in Punjab – A Comprehensive Guide

What is Professional Tax?

Professional Tax (PT) is a state-imposed tax levied on salaried individuals, self-employed professionals, and businesses. In Punjab, it is regulated under The Punjab State Development Tax Act, 2018.

Who is Liable to Pay Professional Tax in Punjab?

The Punjab State Development Tax Act, 2018 applies to:

  1. Salaried Employees – Government & private sector employees.
  2. Self-Employed Professionals – Doctors, CAs, lawyers, engineers, consultants, etc.
  3. Business Owners & Traders – Any person engaged in trade or commerce.

Exemptions:

  • Individuals earning less than ₹2.5 lakh per annum are not liable to pay PT.
  • Senior citizens (aged 60 years and above).
Professional Tax in Punjab, Professional Tax in Punjab: Complete Guide

Professional Tax Registration in Punjab

For Employers:

  • Must register under PT and deduct PT from employees’ salaries.
  • File monthly returns and deposit collected PT.

For Self-Employed Professionals & Businesses:

  • Must register and pay PT directly to the Punjab Taxation Department.

Steps for Registration

  1. Visit the Punjab State Taxation Department Portal.
  2. Apply for Professional Tax Enrollment Certificate (PTEC) if self-employed.
  3. Employers must obtain a Professional Tax Registration Certificate (PTRC).
  4. Submit the required documents (PAN, Aadhaar, Business Registration, etc.).
  5. Upon verification, receive the registration certificate.

Due Dates for Professional Tax Payment

For Employers (PTRC Holders):

  • PT must be deducted from employees and deposited by the 15th of the next month.
  • Annual return filing is mandatory before April 30.

For Self-Employed Individuals (PTEC Holders):

  • Payment must be made annually before March 31.

Penalties for Non-Compliance

  • Late Payment: Interest of 1.5% per month on the due amount.
  • Failure to Register: Penalty up to ₹500 per month.
  • Non-Deduction by Employers: Additional penalty equal to the unpaid tax amount.

How to Pay Professional Tax in Punjab?

  1. Visit the Punjab Taxation Department Portal.
  2. Login and navigate to Professional Tax Payment.
  3. Enter the details and complete the online payment.
  4. Download the receipt for records.

Conclusion

Professional Tax in Punjab is mandatory for individuals earning ₹2.5 lakh or more per annum. Employers must deduct and deposit PT monthly, while self-employed professionals must register and pay PT annually.

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