Act

ASSENT 16/04/2018 Applicable

NOTIFY 19/04/2018

RULE 14/09/2018

RULES NOTIFY 20/09/2018

Official Site of www.Punjab.gov.in
Govt.
Registration www.psdt.Punjab.gov.in
Sites

PSDT Helpdesk [email protected]

site
As per Article 276, Maximum Amount specified is Rs.
2500/-
 ACT RULES

SECTIONS 24 Total 21

1 SCHEDULE The Act is not

applicable in
Chandigarh But it is
Applicable on
Applicability:- State of Punjab Offices Controlled
Applicable From :- 19/04/2018 by Punjab Govt. in
Chandigarh

PSDT is a state levy. Power to Levy

PSDT is taken from Entry No. 60 of
State List.
 Sec. 4 Charging Section
EVERY PERSON 2(j)

Engaged in

Profession
Employment

Trade Calling

Schedule
Falling under any class as Class of persons Rate
mentioned in shall be
liable to pay tax at the All such persons assessable to tax under Rs.200 p.m.
rate as mentioned in head income from salaries
schedule All such persons who are assessable Rs.200 p.m.
under the head PGBP as per Income Tax
Act 1961
 Levy and Charge of Tax(Sec. 4)

Every person, engaged in any profession, trade, calling or employment and falling
under any class mentioned in the Schedule, (Means Schedule to this Act Define Class
of Person who is Liable to Pay Tax) shall be liable to pay the tax at rates mentioned
in the Schedule from time to time. (Means Schedule to this Act Mentioned the Rate
of Tax). Senior citizens shall, however, be exempted as per the Income Tax Act, 1961
Where a person falls under more than one category in the Schedule, he shall be
liable to pay the tax only under one category (Means No Double Taxation)
Total Income
Income Criteria: The tax, for any particular financial year, shall be payable under this
Act only by those Persons whose Taxable income for the same financial year, before
allowing deduction on account of tax levied under this Act,(Means Punjab
Development Tax) exceeds the maximum amount which is not chargeable to
Income Tax.

Note: Clarification About this Required from Punjab Govt.

In Simple Words we can say that This Development Tax is Payable by those person
whose income exceeds the maximum amount which is not chargeable to Income
Tax.
 Categories of Person liable to Pay TAX

Employer u/s 2(f) Others:- Eg. Self- Employed,

Employee More than one place
employed, Trade, Professionals
Every Person Responsible for disbursement of INCOME U/H PGBP
salary and wages
Apply for Registration in
PSDT-1 Form Registration PSDT 2
Employer liable to deduct
and deposit tax of all Certificate of Registration
employees working on in PSDT 3 form Certificate of Enrollment PSDT-4
regular basis>180 days

Rs. 200 p.m.

Rs. 200 p.m.
Employer has to give
Payment of Tax on
information of that
Annual basis. (Beginning
Payment of Tax on employer in PSDT-05
of the year)
Monthly basis(PSDT-8) Form

Return annually (Form Employee who is in Return annually (Form

PSDT-6)(Challans To be Employment under PSDT-7)
Attached) more than 1 Employer
Agriculturist
Senior
or any of his
Citizens
family
member
Person Person Whose Taxable
Earning Income is Below the
Maximum Amount
Wages on Chargeable to Tax Before
Casual Basis Deduction of PSDT
Every Branch of a firm, Company etc. is a separate Assessee.
As per Explanation to
Sec. 2(j) Person Def.
Registration
procedure is
provided in
Firm or Company has to make rules

one place as one main place of

business and other as additional
place of business and get
Registered with Jurisdictional
Officer of Principal Place.
 TIME LIMITS OF REGISTRATION

In Case of Employer In Case of Other Person 6(2)

6(1),6(2)
Within 60 days
from the date of
commencement Within 30 days
of Act from the date of
or commencement
Within 30 days from the of his
date of commencement Profession/Trade.
of his profession,
business etc.

Certificate of enrollment, in case of others

category, should mention the tax to be paid for
the year.
 REQUIREMENTS OF REGISTRATION

P.Y. Income bifurcated into Heads of Income

PAN Number
Mobile Number
E- mail
Address---whether multiple places of business
Aadhar Number- Optional
Number of Employees
 PERSON

Where a Person falls under more than one category in

the schedule, he shall be liable to pay the tax only under
one category. (Means no Double Taxation) Sec. 4(4)
 PENALITIES & Interest
PARTICULARS AMOUNT OF PENALTY

Interest @2% per month

Delay in Registration or Enrollment Rs.50 per day

False Information Rs.5000

Fail to File Returns Rs.50/- per day

Fail to pay Tax 50% of the amount of tax due

Willfully fails to maintain account and Rs.50/- per day

document

Fails to comply with any of the provisions of Rs.5000/- and Rs.50/-per Day if default
this Act continue
 PROCEDURE OF PSDT DEPOSIT

After Registration, login on psdt.punjab.gov.in

Go to Generate Challan, Select month and enter

number of employees and submit

Print 4 copies of challan

At Present online deposit of this challan is not available

Make Cheque in favour of Govt. dues. Cash also

allowed.

State Bank of India is accepting deposit generated

thru CTP site. Use Code 0028-00-107-01-00
 When and how to pay taxes

Particulars Sections & Form Remarks

Employers Liable to deduct tax Sec. 10(2), & Rule No due date has been
and pay the same every month 14 and Form prescribed for payment
PSDT-8 of tax.

Enrolled Persons need to pay tax Sec. 10(3), Rule Due Date is One month
once in a month within one 14 and PSDT-8 from the end of the
month from the end of the month of enrolment.
month of enrollment
 Different situations of registration

CASE 1 CASE 2 CASE 3 CASE 4 CASE 5 CASE 6

No income
Salary<250000 under head Salary>250000 PGBP<250000
SALARY>250000 Taxable PGBP>250000 Salary/ PGBP Taxable Taxable
Taxable Income Income>25000 Taxable Taxable Income>25000 Income>25000
PARTICULARS <250000 0 Income=250000 Income>250000 0 0
Salary 300000 180000 0 0 400000 0
House Property -25000 0 0 180000 -100000 0
PGBP 0 0 260000 0 0 50000
Capital Gains 0 100000 0 200000 0 0
Other Sources 10000 20000 5000 20000 0 300000
Gross Total Income 285000 300000 265000 400000 300000 350000
Deduction 80000 20000 150000 100000 40000 50000
Total Income 205000 280000 115000 300000 260000 300000
Registration
Required No Yes No No Yes yes

T.I. >250000+ No income T.I. exceeds

T.I. Salary income T.I. not under head T.I. 250000+PGBP
<250000(Exemp is there(any exceeding Salary/ PGBP >250000+Salar income is
Remarks ltion limit) amount)) 250000 y Income there
 Returns

Particulars Sections Remarks

Every Employer after making self assessment of Sec. 7(2), Rule 10 speaks of filing
tax shall file returns, showing therein the salaries 7(3) of only annual return
and wages paid by him & amount of tax deducted Rule 10, by the employer by 30th
by him form day of April of the
PSDT-6 following F.Y. and no
other periodical returns

Every Enrolled person after making self Sec. 7(1) In return annual gross
assessment of tax shall file return showing therein Rule 11 income needs to be
annual gross income from his profession, trade, PSDT-7 shown i.e. return is to
calling or employment of the preceeding year and be filed annually, but
tax payable paid by him due date of filling not
prescribed.
 CESSATION OF LIABILITY TO PAY TAX (Rules 4,5,6,7)

Amendment of Certificate of Registration – Application to be submitted to the Designated

Officer specifically stating the Amendment desired with the reasons thereof, alongwith certificate
of Registration/Enrollment, but no time limit for applying for amendment has been prescribed.
Intimation regarding cessation of liability to pay tax.-In the event of cessation of liability to pay
tax because of closure of business or for any other reason, the employer or the person holding
the certificate of registration or enrolment, as the case may be, shall send an intimation in
writing to that effect to the designated officer within thirty days of the cessation of liability to pay
tax.
Cancellation of certificate.-On receipt of an intimation under rule 5, the certificate of registration
or enrolment, as the case may be, granted under rule 3, may be cancelled by the designated
officer after satisfying himself that the liability to pay tax of the employer or the person to whom
such certificate was granted, has ceased.
Exhibition of certificate.-The employer or the person holding a certificate of registration or
enrolment, as the case may be, shall display conspicuously at his place of work, the certificate of
registration or enrolment, as the case may be, or a copy thereof
Registration psdt.punjab.gov.in
 Registration psdt.punjab.gov.in

Note: Even HUF given is as an Employer. It is a PAN based

Registration, PAN required even for Government Employer
Registration as an INDIVIDUAL
Registration As a Private Employer

Option of
Sole
Proprietor
not available
Registration psdt.punjab.gov.in
Registration psdt.punjab.gov.in
 Procedure for adding multiple business place

Click on
Add/
Remove
locations
Forgot Password Option
 Procedure for creation of Challan
Step 1: Go to CYBER TREASURY PUNJAB site

Click on
Guest
User
Procedure for creation of Challan
Payment of challan
Payment of challan
 VARIOUS FORMS UNDER THE RULES
S. No. Form No. Description

1. PSDT – 1 Application for Registration (for employers)

2. PSDT – 2 Application for Enrolment (for others)

3. PSDT – 3 Certificate of Registration (for employers)

4. PSDT – 4 Certificate of Enrolment (for others)

5. PSDT – 5 Certificate to be furnished by employee in case he is engaged in employment of more than one employer

6. PSDT – 6 Annual Return (for Employer)

7. PSDT – 7 Annual Return (for persons)

8. PSDT – 8 Challan for Payment of Tax

Notice u/s 6,7 and 10 of PSDT Act 2018(Failure to obtain registration or giving false information in
9. PSDT – 9 registration )

10. PSDT – 10 Notice u/s 8(3) of PSDT Act 2018(Assessment of employers)

11. PSDT – 11 Notice u/s 8(4), 9(3) and section 15 of PSDT Act 2018(Rectification of mistakes & review of order)

12. PSDT – 12 Order of assessment/re-assessment of an employee/person

13. PSDT – 13 Notice of demand for payment of tax/penalty

14. PSDT – 14 Memorandum of Appeal

 Ambiguity in act
Tax Applicability on person i.e. firm, company required to be clarified that it is only
w.r.t. the concern as Employer or personal capacity.

In view of provisions of sections 10(2) and Rule 14 , tax by the employer needs to be
deposited on monthly basis in Form PSDT-8, but the due date has not been
prescribed.

Clarification is required whether there shall be monthly, Quarterly or annual return

in the case of registered employer or it shall be as per the discretion of the
Commissioner as per Section 7.

Section 5 of the Act provides for deduction of tax by the employer before the
payment of salary & wages to an employee whereas Rule 12 provides for deduction
of tax on quarterly basis. Clarification is needed on the same, also in view of the fact
that payment of tax by the employer is monthly as per section 10(1).

Section 11 provides for levy of simple Interest @ 2% p.m. even in case of failure to
deduct tax. Clarification is needed on what amount interest to be calculated and for
what period when there remains no tax due. Also whether interest would be levied
if one fails to deduct but makes the payment of tax, if yes on what amount and for
till which period.
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