Punjab Professional Tax

Introduction

Article 276, Clause 2 of the Indian Constitution covers the provision concerning professional tax in the country. Professional tax is imposed by state governments on the individuals who are employed in governmental, private and non-governmental organizations. The quantum of levy varies according to the strata of income, but wouldn’t exceed INR 2,500 in a year. Professional tax in the State of Punjab is administered by the “(Punjab Act No.11 of 2018).” This Development Tax is Payable by those person whose income exceeds the maximum amount which is not chargeable to Income Tax (i.e. Rs.250,000/-) before allowing any deductions as per Income tax act and amount payable under this Act. The provision isn’t applicable for Person who earn Wages on casual basis, Person Engaged exclusively in Agricultural Activity, Senior Citizens Exempt as per Section No.4. In this article, we look at the various aspects Payment of Punjab State Development Tax in detail. For complete act and rules refer the link https://psdt.punjab.gov.in/

Current Burning Issue – How to deposit  the tax deducted to Government tresury

The current burning issue is where to deposit the tax that has been deducted from the salary of Employee. Please follow the below steps to Generate the Challan and deposit the tax online/Offline-

Generation of Challan

Once the Employer has created his Login ID, the employer will see the below

Click on Challan Option and the below screen will appear. Fill in the above details and generate the challan. After generation of challan visit the below web portal for creating a treasury receipt of directly making the payment to the Punjab treasury

https://www.ctp.punjabgovt.gov.in/portal.htm

Login as Guest user on the above portal and enter details as per the challan generated on Punjab State development tax portal

Select department – “ Department of Finance” and then select Major head “0028”. Once done you will see purpose “Receipt Under Punjab State Development Tax”.

Then proceed with onscreen instructions for deposit of tax online or to create offline challan for deposit at SBI Bank Counter.

Trust this helps.

Author is a practicing chartered accountant based out of Amritsar and practices Income tax, Company Law, GST and other related laws. Please like this page so that i feel motivated and post more helpful posts like this.