Professional Tax (PT) in Punjab (Updated: July 2025)

The Punjab State Development Tax (PSDT) is levied under the Punjab State Development Tax Act, 2018 and administered in accordance with the Punjab State Development Tax Rules, 2018. Unlike other states’ Professional Tax Acts, Punjab’s PSDT specifically applies to individuals earning income from salaries or wages.

In this article, we provide an easy-to-understand guide on PSDT — its applicability, required documents for registration, tax rates, and filing process.

Applicability of Punjab State Development Tax

As per the Act:

• PSDT is applicable to all persons who are assessable under the head “Income from Salaries and/or Wages” as per the Income Tax Act, 1961.
• The tax liability arises when an individual’s annual income exceeds the specified threshold.
• Employers are responsible for deducting this tax from their employees’ salaries and depositing it with the Punjab Government.

Exemption:

• No exemptions have been specified under the Act.

Documents Required for PSDT Registration in Punjab

The following documents are required for registration under Punjab State Development Tax:

• Memorandum of Agreement (MOA)
• Articles of Association (AOA)
• PAN Card
• Lease Agreement (if applicable)

Punjab PSDT Registration Process

• Mode: Online
• Official Website: https://psdt.punjab.gov.in/

Employers can complete the registration process online through the Punjab PSDT portal.

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Punjab State Development Tax Rates

The Punjab State Development Tax is simple and straightforward with only one applicable slab:

Annual Income (INR)	Tax Payable (Monthly)
Above ₹ 2,50,000	₹ 200 per month

Note: The tax applies to those assessable under “Income from Salaries and/or Wages” under the Income Tax Act.

Conclusion:

PSDT compliance is mandatory for eligible individuals and employers in Punjab. Employers must ensure timely registration and proper deduction of the tax from employees’ salaries.

For more details and to complete your registration, visit the official PSDT portal: https://psdt.punjab.gov.in/