Professional Tax Punjab: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

Individuals who earn their living through professional careers, labour, or businesses are subject to professional tax. The self-employed working population also pays professional taxes to the respective state government. In this regard, the payment of professional tax in Punjab is facilitated per the provisions of the Punjab State Tax on Professions, Trades, Callings and Employments Act, 1975. 

But is paying this tax mandatory? How can you pay for it? Read on to find out!

Professional Tax in Punjab

The Punjab state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, consultants, etc. Those working in Punjab must pay professional tax according to the applicable income slab and professional tax rate.

Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually. However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR.

Clause 2 of Article 276 of the Indian Constitution covers the payment of professional taxes in India. The Punjab government imposes a professional tax of Rs 200 per month on those who earn their income as a salary or from a business, as per the Income Tax Act of 1961. 

Punjab Professional Tax Act/Rule

Professional tax is levied and collected from individuals engaged in various professions, trades, callings, and employment as per the Punjab State Development Tax Act, 2018. It came into effect on April 19, 2018. This tax is imposed as a welfare benefit for the state of Punjab; it is applicable throughout the state for offices of anybody owned by the state and offices of the government of Punjab. 

Professional Tax Applicability in Punjab

Let's get a comprehensive idea about professional tax applicability in Punjab. The different categories of individuals liable to pay this tax in Punjab are: 

• The person working for an organization that operates in any part of Punjab and is owned or controlled by the Central Government or any state government, regardless of whether that organization is incorporated.
• A government individual who receives a salary from the railway fund, any state government or Central Government.
• Government servants receive salaries from the revenues of Punjab state, even though their offices are outside this state.
• An employee of an organisation, whether or not it is incorporated, that is owned or controlled by Punjab and conducts business within or outside of the state.
• A person working for an employer not included in the above mentioned categories. Such an employer should be responsible for the salaries of his/her employees regularly. This may include the employer's manager or agent as well as the officer in charge of paying the salaries or wages.  Sole proprietors, societies, trusts, clubs, HUF, partnership firms, institutions, local authorities, etc., are also included in the list.

Documents Required for Registration

For Employers (Organization)

•  PAN Card of the company/organization – Identity proof.
• Certificate of Incorporation or Partnership Deed – Business Registration Proof.
• Address proof of the business – Utility bill, rental agreement, or ownership.
• List of employees – which includes name, designation, and salary of the employees.
• Employee Pay Register – The proof of salary payment against the employee.
• Identity proof for the employer: PAN card, Aadhaar card, or passport
• GST Registration Certificate- if any.
• Bank Account Statement – ​​All types of financial transactions.

For Self-employed Individuals

• PAN Card – Proof of identity.
• Address Proof – Utility bill, Aadhaar card, rental agreement, or ownership documents.
• Proof of Profession – Qualification certificate, like degree certificate, license, etc.
• Bank Account Statement – ​​For professional tax payment.
• GST Registration Certificate – If the profession is liable under GST.
• Recent passport size photo – For identity verification.

Professional Tax Slab Rate in Punjab

The Punjab state government professional tax rates according to the applicable income slab for salaried and self-employed individuals, follow the table below:

Punjab Professional Tax Online Payment

If you are a salaried individual, the professional tax will be deducted from your salary every month. Employers can pay professional tax through online mode. Here are the steps: 

• Visit the Punjab State Development tax portal and log in with your username and password. 
• Under the Challan section, enter necessary details like month, year and the number of taxable employees. Click on ‘request challan’, follow the on-screen instructions, and choose the preferred payment mode to complete the transaction. 

If you are self-employed, you must pay this tax directly to the state government. You need to obtain a certificate of enrolment from a designated tax officer. 

Punjab Professional Tax Payment Due Date

The tax deducted by employers shall be deposited monthly by the last day of the following month. Enrollment Tax will be paid within 30 days from the end of the financial year or within 30 days from the date of registration.

Failing to file a return shall be liable to pay Rs 50 for each day of delay.

Punjab Professional Tax Late Payment Penalty

If an employer fails to deduct professional tax at the time of payment or wage or neglects to pay the tax as required by the Act, he/she is liable to pay simple interest at a rate of 2% of the amount of the tax pending for each month.  

Punjab Professional Tax Exemption

Here are the individuals who are exempted from paying professional tax in Punjab:

• Senior citizens (above the age of 65).
• Individuals with disabilities, such as those with physical & mental impairment.
• Individuals with receipt of pension.
• Member of armed forces.

Various PT Forms 

Final Word

Most Indian states have their own set of professional tax slab rates. All individuals liable for professional taxes must pay this before the due date. If you are an employer or self-employed individual in Punjab, paying professional tax in Punjab must be paid within the due date. The person responsible for late payment may also be subject to legal action or penalty charges.