Punjab Professional Tax Calculator (FY 2026-27)
Exact professional tax (Punjab State Development Tax) for every category under the Punjab State Development Tax Act, 2018 – salaried, professionals, traders and business owners. A flat levy on those liable to income tax. Verified by a practising CA.
Punjab does not have a traditional multi-band professional tax. Instead it levies the Punjab State Development Tax under the Punjab State Development Tax Act, 2018 (in force from 19 April 2018), administered through the PSDT portal. It is a flat Rs 200 a month on every person – salaried, self-employed, professional or trader – whose income is liable to income tax, that is, whose annual income exceeds the basic exemption limit of Rs 2,50,000. Anyone below that limit pays nil.
| Annual income | PT per month | PT per year |
|---|---|---|
| Up to Rs 2,50,000 | Nil | Nil |
| Above Rs 2,50,000 (liable to income tax) | 200 | 2,400 |
So a person liable to income tax pays a flat Rs 200 a month, or Rs 2,400 a year – within the Rs 2,500 ceiling. There is no graded slab and no separate amount for higher incomes. (Some older tables show a Rs 175 band; the operative rate under the Act is the flat Rs 200 a month on those liable to income tax.)
The tax applies to salaried employees (the employer deducts and deposits), and to self-employed professionals, traders and business owners who enrol and pay on their own account, in each case where their income is taxable. An employer or business must register within 30 days of becoming liable. A company registers as an employer to deduct and deposit its employees’ tax.
Employers deposit the deducted tax by the last day of the following month. Enrolled persons pay annually – a person enrolled by 31 May pays by 30 June, later enrolments within a month. Returns are filed on the PSDT portal (forms PSDT-6 for employers and PSDT-7 for enrolled taxpayers).
Late payment carries the overdue tax plus simple interest of 2% a month, with penalties such as Rs 50 a day for failure to register or file, and up to 50% of the tax for non-payment after a demand notice. PT paid in the year is deductible from salary under Section 16(iii) if you opt for the old income-tax regime.
Persons with annual income up to Rs 2,50,000 are not liable. Punjab also exempts persons engaged wholly in agriculture, those with only casual or irregular income, and senior citizens.