Punjab Professional Tax (PSDT) Calculator (FY 2026-27)
Punjab’s version of professional tax is the State Development Tax – a flat Rs 200 a month under the Punjab State Development Tax Act, 2018 (as amended in 2025), for income-tax payers. Verified by a practising CA.
Punjab does not levy a slab-based professional tax. Instead, the Punjab State Development Tax Act, 2018 charges a flat Rs 200 per month (Rs 2,400 a year) on every person engaged in a profession, trade, calling or employment in Punjab who is liable to income tax – that is, whose income exceeds the basic exemption limit under the Income-tax Act. Senior citizens (as defined in the Income-tax Act) are exempt. The 2025 Amendment added a convenient lump-sum option of Rs 2,200 a year, paid by 30 April of the financial year – a Rs 200 saving over the monthly route.
| Payment route | Amount | Due date |
|---|---|---|
| Monthly deduction by employer | Rs 200 per month | 30th of the following month |
| Monthly self-payment (enrolled persons) | Rs 200 per month | 30th of the following month |
| Lump-sum (either route, w.e.f. 2025 amendment) | Rs 2,200 per year | 30 April of the financial year |
Employers register on the PSDT portal (psdt.punjab.gov.in), deduct Rs 200 from the salary of every employee whose income exceeds the basic exemption limit and deposit it by the 30th of the following month with returns. An employee with more than one employer can register for self-payment and declare it, relieving the employer. Self-employed professionals, traders, firms, LLPs and companies register within 30 days of commencing business and pay the same Rs 200 a month (or the Rs 2,200 lump sum). Casual wage earners and agriculturists selling only their own Punjab-land produce are outside the levy.
Failure to pay or deduct attracts interest at 2% per month and a penalty of 50% of the tax. The 2025 amendment recast fixed penalties – for example, Rs 1,000-2,000 a year for delayed registration or returns depending on whether you are a person or an employer. PSDT paid is deductible from salary under Section 16(iii) in the old income-tax regime; the new regime does not allow it.