The Department of Legal and Legislative Affairs, Punjab has recently notified the Punjab State Development Tax Act, 2018 (“Act”).
The Act is effective since 19th April, 2018.
Among other provisions, the Act provides for the levy and collection of taxes on professions, trades, callings and employments.
Key highlights of the Act with respect to taxes on professions, trades, callings and employments are –
- All persons drawing their income from salaries or wages, business or professions as per the definition of “Salary”, “Wages” and “Income from Business or Profession” under the Income Tax Act are assessable under the Act.
- Every employer is mandated to obtain registration under the Act. The registration is mandated to be obtained under Section 6 of the Act from the designated officer in the prescribed manner enumerated in the Act within 60 days from the commencement of the Act.
- All the assessable persons are mandated to pay Rs. 200/- per month under the Act. Every employer is required to deduct this amount from the salary of the its employees and deposit the same with the State Government as per Section 4 and Section 5 of the Act.
- Every person enrolled under this Act shall file an annual return in the prescribed manner showing his income from profession, trade, calling or employment for preceding year and tax paid or payable by him. Same responsibility is casted up on the employers whereby the employers are mandated to file an annual return showing salaries or wages paid by the employer and the amount of tax deducted by the employer. The filling of returns as stated above has been enumerated in Section 7 of the Act.
- The Employers as well individuals are subjected to be assessed by the designated officers as prescribed under this Act.
- In case of failure to deduct the tax amount from salary of the employee, the employer shall be liable to pay 2% interest on the said amount. All arrears of tax, penalty and interest due under this Act shall be recoverable as arrear of land revenue. No court shall entertain any suit or other proceedings to set aside or modify or question the validity of any assessment, order or decision made or passed by any officer or authority under this act.
Source: Department of Legal and Legislative Affairs, Government of Punjab
