Professional Tax Slab in Punjab (2026)
Punjab Professional Tax Slab (2026)
In Punjab, professional tax is officially known as the Punjab State Development Tax (PSDT)[. It is charged at a flat rate of ₹200 per month (totaling ₹2,400 per year) only for individuals who pay income tax and earn an annual income above ₹2,50,000.
Punjab State Development Tax Rates
- Up to ₹2,50,000 per year: Nil (Exempt)
- Above ₹2,50,000 per year (Income tax payers): ₹200 per month
Key Rules & Compliance
- Applicability: Applies strictly to persons who are income tax payers.
- Payment Due Date: Employers must deduct the tax monthly and deposit it with the state government by the 15th day of the following month.
- Official Portal: Payments and filings are managed through the official Punjab PSDT Portal.
- Deduction: The tax paid is fully allowed as a deduction under Section 16(iii) of the Income Tax Act.
Professional Tax Slab in Punjab (2026)
Punjab levies Professional Tax, known as the Punjab State Development Tax (PSDT), under the Punjab State Development Tax Act, 2018. The tax is applicable to eligible salaried employees, professionals, traders, and certain organizations. Employers are responsible for deducting the tax from employees' salaries and depositing it with the Punjab Government.
Punjab Professional Tax Slab (2026)
The Professional Tax liability depends on the employee's taxable annual income under the Income-tax Act
| Annual Taxable Income | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to ₹2,50,000* | Nil | Nil |
| Above ₹2,50,000 | ₹200 | ₹2,400 |
*For taxpayers under the new income tax regime, the exemption threshold aligns with the applicable basic exemption limit under the Income-tax Act. The Punjab Government has issued clarifications regarding these thresholds.
Punjab Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹18,000 | ₹2,16,000 | Nil | Nil |
| ₹25,000 | ₹3,00,000 | ₹200 | ₹2,400 |
| ₹50,000 | ₹6,00,000 | ₹200 | ₹2,400 |
| ₹1,00,000 | ₹12,00,000 | ₹200 | ₹2,400 |
Key Highlights of Punjab Professional Tax
- Applicable State: Punjab
- Governing Law: Punjab State Development Tax Act, 2018
- Professional Tax Name: Punjab State Development Tax (PSDT)
- Monthly Deduction: ₹200 (for eligible persons)
- Maximum Annual Tax: ₹2,400
- Deduction Frequency: Monthly
- Applicable Cities: Amritsar, Ludhiana, Jalandhar, Patiala, Mohali, Bathinda, Hoshiarpur, Pathankot, Moga, and all districts of Punjab.
Employer Responsibilities in Punjab
Employers operating in Punjab must:
- Obtain Punjab State Development Tax registration.
- Determine employee eligibility based on applicable income thresholds.
- Deduct ₹200 per month from eligible employees.
- Deposit the deducted tax within the prescribed due dates.
- File the required Professional Tax returns
- Maintain payroll and statutory compliance records.
Professional Tax Slab in Ludhiana (2026)
Ludhiana follows the Punjab State Development Tax (PSDT) provisions under the Punjab State Development Tax Act, 2018. There is no separate Professional Tax slab for Ludhiana—the same PSDT rules apply across all cities in Punjab. Eligible employees are subject to a flat Professional Tax of ₹200 per month, while those below the applicable income threshold are exempt.
Ludhiana Professional Tax Slab (2026)
| Annual Taxable Income* | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to the applicable basic exemption limit | Nil | Nil |
| Above the applicable basic exemption limit | ₹200 | ₹2,400 |
*For FY 2026-27, the exemption threshold is based on the applicable Income-tax regime (old or new) under the Income-tax Act. Eligible taxpayers above the threshold are liable to pay PSDT
Professional Tax Calculation Examples
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹20,000 | ₹2,40,000 | Nil | Nil |
| ₹30,000 | ₹3,60,000 | ₹200 | ₹2,400 |
| ₹50,000 | ₹6,00,000 | ₹200 | ₹2,400 |
| ₹1,00,000 | ₹12,00,000 | ₹200 | ₹2,400 |
Key Highlights of Professional Tax in Ludhiana
- Applicable City: Ludhiana
- State: Punjab
- Governing Law: Punjab State Development Tax Act, 2018
- Tax Name: Punjab State Development Tax (PSDT)
- Monthly Professional Tax: ₹200 (for eligible taxpayers)
- Maximum Annual Professional Tax: ₹2,400
- Deduction Frequency: Monthly
- Applicable Across Punjab: Yes, including Ludhiana, Amritsar, Jalandhar, Patiala, Mohali, Bathinda, and all other districts
Employer Responsibilities in Ludhiana
Employers in Ludhiana must
- Obtain PSDT registration, where applicable.
- Determine employee eligibility based on the applicable income threshold
- Deduct ₹200 per month from eligible employees.
- Deposit the deducted tax within the prescribed due dates.
- File required PSDT returns.
- Maintain payroll and statutory compliance records.
Professional Tax Slab in Chandigarh (2026)
Chandigarh is a Union Territory and does not levy Professional Tax (PT). There is no law requiring employers to deduct Professional Tax from employees' salaries, and businesses or professionals are not required to obtain Professional Tax registration or file Professional Tax returns in Chandigarh.
Chandigarh Professional Tax Slab (2026)
| Monthly Gross Salary | Professional Tax Payable |
|---|---|
| Any Salary Amount | Nil (₹0) |
Professional Tax Calculation Examples (2026)
| Monthly Salary | Monthly PT | Annual PT |
|---|---|---|
| ₹20,000 | Nil | Nil |
| ₹40,000 | Nil | Nil |
| ₹75,000 | Nil | Nil |
| ₹1,50,000 | Nil | Nil |
Key Highlights of Chandigarh Professional Tax
- Applicable Territory: Chandigarh (Union Territory)
- Professional Tax Applicable: No
- Monthly PT Deduction: ₹0
- Annual PT Deduction: ₹0
- Professional Tax Registration (PTRC/PTEC): Not Required
- Professional Tax Return Filing: Not Required
- Maximum Annual Professional Tax: Not Applicable
- Applicable Areas: All sectors and localities within Chandigarh
Employer Payroll Compliance in Chandigarh
Since Professional Tax is not applicable in Chandigarh, employers are not required to:
- Deduct Professional Tax from employee salaries.
- Obtain Professional Tax Registration Certificate (PTRC) or Enrollment Certificate (PTEC).
- File Professional Tax returns
- Deposit Professional Tax with any government authority.
However, employers must continue complying with other statutory payroll requirements, including:
- Employees' Provident Fund (EPF)
- Employees' State Insurance (ESI), where applicable
- Income Tax TDS
- Labour law and Shops & Establishments compliance, where applicable
- Payroll and salary record maintenance
Professional Tax Slab in Jalandhar (2026)
Jalandhar follows the Punjab State Development Tax (PSDT) under the Punjab State Development Tax Act, 2018. There is no separate Professional Tax slab for Jalandhar. The same PSDT rules apply throughout Punjab, and eligible employees are generally liable to pay a flat tax of ₹200 per month if they are above the applicable income-tax exemption threshold.
Jalandhar Professional Tax Slab (2026)
| Annual Taxable Income* | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to the applicable basic exemption limit | Nil | Nil |
| Above the applicable basic exemption limit | ₹200 | ₹2,400 |
*The applicable exemption limit depends on the income tax regime (old or new) under the Income-tax Act. The Punjab PSDT provisions are aligned with these thresholds.
Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹20,000 | ₹2,40,000 | Nil | Nil |
| ₹30,000 | ₹3,60,000 | ₹200 | ₹2,400 |
| ₹50,000 | ₹6,00,000 | ₹200 | ₹2,400 |
| ₹1,00,000 | ₹12,00,000 | ₹200 | ₹2,400 |
Key Highlights of Professional Tax in Jalandhar
- Applicable City: Jalandhar
- State: Punjab
- Governing Law: Punjab State Development Tax Act, 2018
- Tax Name: Punjab State Development Tax (PSDT)
- Monthly Professional Tax: ₹200 (for eligible taxpayers)
- Maximum Annual Professional Tax: ₹2,400
- Deduction Frequency: Monthly
- Applicable Across Punjab: Yes, including Jalandhar, Ludhiana, Amritsar, Patiala, Mohali, Bathinda, and other districts.
Employer Responsibilities in Jalandhar
Employers operating in Jalandhar must:
- Obtain PSDT registration where applicable.
- Determine employee eligibility based on the prescribed income threshold.
- Deduct ₹200 per month from eligible employees.
- Deposit the deducted tax within the prescribed due dates
- File the required PSDT returns.
- Maintain payroll and statutory compliance records.
Professional Tax Slab in Mohali (2026)
Mohali (Sahibzada Ajit Singh Nagar) follows the Punjab State Development Tax (PSDT) provisions under the Punjab State Development Tax Act, 2018. There is no separate Professional Tax slab for Mohali. The same PSDT rules apply across all cities and districts in Punjab[cite:. Eligible employees are generally liable to pay ₹200 per month, while individuals below the applicable income-tax exemption limit are exempt.
Mohali Professional Tax Slab (2026)
| Annual Taxable Income* | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to the applicable basic exemption limit | Nil | Nil |
| Above the applicable basic exemption limit | ₹200 | ₹2,400 |
*The applicable exemption threshold depends on the income tax regime (old or new) under the Income-tax Act. Eligible taxpayers above the prescribed limit are liable to pay Punjab State Development Tax.
Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹20,000 | ₹2,40,000 | Nil | Nil |
| ₹30,000 | ₹3,60,000 | ₹200 | ₹2,400 |
| ₹50,000 | ₹6,00,000 | ₹200 | ₹2,400 |
| ₹1,00,000 | ₹12,00,000 | ₹200 | ₹2,400 |
Key Highlights of Professional Tax in Mohali
- Applicable City: Mohali (Sahibzada Ajit Singh Nagar)
- State: Punjab
- Governing Law: Punjab State Development Tax Act, 2018
- Tax Name: Punjab State Development Tax (PSDT)
- Monthly Professional Tax: ₹200 (for eligible taxpayers)
- Maximum Annual Professional Tax: ₹2,400
- Deduction Frequency: Monthly
- Applicable Across Punjab: Yes, including Mohali, Ludhiana, Amritsar, Jalandhar, Patiala, Bathinda, and all other districts.
Employer Responsibilities in Mohali
Employers operating in Mohali must:
- Obtain PSDT registration where applicable.
- Verify employee eligibility based on the applicable income threshold
- Deduct ₹200 per month from eligible employees
- Deposit the deducted tax within the prescribed due dates
- File the required PSDT returns.
- Maintain payroll and statutory compliance records.
Professional Tax Slab in Hoshiarpur (2026)
Hoshiarpur follows the Punjab State Development Tax (PSDT) provisions under the Punjab State Development Tax Act, 2018 There is no separate Professional Tax slab for Hoshiarpur. The same PSDT rules apply across all cities and districts in Punjab[cite:. Eligible employees and other liable persons are generally required to pay a flat Professional Tax of ₹200 per month, while individuals below the applicable income-tax exemption threshold are exempt.
Hoshiarpur Professional Tax Slab (2026)
| Annual Taxable Income* | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to the applicable basic exemption limit | Nil | Nil |
| Above the applicable basic exemption limit | ₹200 | ₹2,400 |
*The applicable exemption threshold depends on the income tax regime (old or new) under the Income-tax Act. Eligible taxpayers above the prescribed threshold are liable to pay Punjab State Development Tax (PSDT)[
Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹20,000 | ₹2,40,000 | Nil | Nil |
| ₹30,000 | ₹3,60,000 | ₹200 | ₹2,400 |
| ₹50,000 | ₹6,00,000 | ₹200 | ₹2,400 |
| ₹1,00,000 | ₹12,00,000 | ₹200 | ₹2,400 |
Key Highlights of Professional Tax in Hoshiarpur
- Applicable City: Hoshiarpur
- State: Punjab
- Governing Law: Punjab State Development Tax Act, 2018
- Tax Name: Punjab State Development Tax (PSDT)
- Monthly Professional Tax: ₹200 (for eligible taxpayers)
- Maximum Annual Professional Tax: ₹2,400
- Deduction Frequency: Monthly
- Applicable Across Punjab: Yes, including Hoshiarpur, Ludhiana, Amritsar, Jalandhar, Mohali, Patiala, Bathinda, and all other districts.
Employer Responsibilities in Hoshiarpur
Employers operating in Hoshiarpur must:
- Obtain PSDT registration where applicable.
- Determine employee eligibility based on the applicable income threshold
- Deduct ₹200 per month from eligible employees
- Deposit the deducted tax within the prescribed due dates.
- File the required PSDT returns.
- Maintain payroll and statutory compliance records.
Conclusion
In Punjab, professional tax is officially known as the Punjab State Development Tax (PSDT). It is charged at a flat rate of ₹200 per month (totaling ₹2,400 per year) only for individuals who pay income tax and earn an annual income above ₹2,50,000.
With InnBuilt, businesses can configure state-wise payroll settings, including turning on Professional Tax for Punjab, while managing attendance, leave, shifts, and employee data from one platform.