Professional Tax · Punjab · checked 5 October 2026
₹200 a month for employees who pay income tax, nil for everyone else.
Punjab levies its professional tax as the Punjab State Development Tax, under the Punjab State Development Tax Act, 2018. It is a flat ₹200 a month, paid only by people who pay income tax.
₹2,400maximum a year per employee
₹200a month for every income-tax payer
Niltaxable income not above the income-tax exemption limit
Employerdeducts it every month from income-tax payers
Punjab professional tax slabs
There are no salary slabs: the tax depends on whether the employee pays income tax.
| Taxable income for the year | Tax per month |
|---|---|
| Not above the income-tax basic exemption limit | Nil |
| Above the income-tax basic exemption limit | ₹200 |
Maximum per year: ₹2,400. The Constitution caps professional tax at ₹2,500 a year for any one person.
What employers need to know
Rule
Only income-tax payers pay it: people whose taxable income for the year, after all deductions, is above the income-tax basic exemption limit.
Rule
Employers deduct it from employees whose taxable income crossed that limit in the previous year or whose TDS is deducted monthly. For anyone who crosses the limit during the year, the employer deducts the tax due in February or March.
Rule
Tax deducted for a month is deposited by the last day of the following month, by challan in Form PSDT-8. Employers file an annual return in Form PSDT-6 by 31 August after the year ends.
Rule
Employers need a certificate of registration, applied for within 30 days of starting business.
Effective
In force since the Act was published in the Punjab Gazette on 19 April 2018. The monthly deposit date and the 31 August return date come from rule amendments of 26 February 2021 and 1 February 2022.
Who is exempt
Exempt
People who earn wages on a casual basis.
Exempt
Agriculturists who sell their produce only within Punjab.
Exempt
Senior citizens only through their higher income-tax exemption limit: they pay if their taxable income is above it.
As listed in the Excise and Taxation Department’s PSDT FAQ.
Sources
- Punjab State Development Tax Act, 2018 — Punjab Government Gazette, 19 April 2018
- PSDT FAQ — Department of Excise and Taxation, Punjab
- PSDT (Amendment) Rules, 2021 — monthly deposit date
- PSDT (First Amendment) Rules, 2022 — annual return date
Checked against these sources on 5 October 2026. State governments revise these rates from time to time; confirm on the official site before filing.
Other states
Professional tax in other states, and related tools.
