Punjab Professional Tax Slab 2026-27

Punjab sets professional tax by monthly gross salary. The slabs in force today:

• Up to ₹20,833 monthly gross: Nil
• Above ₹20,833 monthly gross: ₹200 a month

A flat ₹200 a month, charged under the Punjab State Development Tax Act, 2018, only on people who pay income tax.

1. Register for professional tax in Punjab before deducting it from employees there.
2. Deduct the amount for each employee's slab from their salary.
3. Deposit what you deducted with Punjab by the state's due date, and file any return the state asks for.
4. Show the amount deducted on the employee's payslip and Form 16.

Professional tax is capped at ₹2,500 per person per year across India. In Punjab the most one employee pays is ₹2,400.

Punjab State Development Tax Act, 2018. The ₹20,833-a-month cut-off (₹2.5 lakh a year) is the working threshold payroll references use. Last checked on 18 October 2026. Professional tax is set by each state and can change without notice, so confirm the current schedule with the state tax department before you rely on it for a filing.

The Act ties the tax to being an income-tax payer, not to a fixed salary. Payroll references differ on the practical cut-off (₹2.5 lakh a year is the most common), so confirm yours with the department.