Professional tax, FY 2026-27
Professional tax in Punjab
Punjab charges a development tax of ₹200 a month, ₹2,400 a year, on salaried people whose taxable income is above the basic exemption limit. Its law still refers to the Income Tax Act, 1961, so how that limit applies under the 2025 Act is not confirmed; check your payslip.
Who charges it and how
Professional tax in Punjab is charged under the Punjab State Development Tax Act, 2018. For salaried employees it is deducted from your salary by your employer, who pays it to the state; your payslip shows it as a deduction.
The Constitution limits professional tax to ₹2,500 a year for each person (article 276(2)).
Source: Punjab State Development Tax Act, 2018; Punjab State Development Tax FAQ. Rules checked 21 October 2026.
Punjab takes at most ₹2,400 a year
Punjab's development tax is ₹200 a month for salaried people whose taxable income is above the basic exemption limit, and nothing for others.
| Who | Professional tax |
|---|---|
| Taxable income above the basic exemption limit | ₹200 a month |
| Otherwise | Nil |
The Act's schedule still refers to the Income Tax Act, 1961, which the Income-tax Act 2025 replaced on 1 April 2026. We assume the exemption limit of the regime you are taxed under (₹4,00,000 in the new regime, ₹2,50,000 in the old) and test it on salary less the standard deduction. The department has not said how it reads this, so check your payslip.
At 10 LPA, professional tax averages ₹200 a month in Punjab
In-hand salary in Punjab on common CTCs, new regime, basic at 50% of CTC and PF on full basic. The LPA pages use Maharashtra; choose Punjab there to match this table. They do not take off ESI, which applies at lower wages in covered workplaces.
| CTC | Gross a month | Professional tax a year | In-hand a month |
|---|---|---|---|
| 4 LPA | ₹30,532 | Nil | ₹28,532 |
| 5 LPA | ₹38,165 | Nil | ₹35,665 |
| 6 LPA | ₹45,798 | ₹2,400 | ₹42,598 |
| 8 LPA | ₹61,063 | ₹2,400 | ₹56,863 |
| 10 LPA | ₹76,329 | ₹2,400 | ₹71,129 |
| 12 LPA | ₹91,595 | ₹2,400 | ₹85,395 |
| 15 LPA | ₹1,14,494 | ₹2,400 | ₹1,00,308 |
| 20 LPA | ₹1,52,658 | ₹2,400 | ₹1,29,338 |
| 25 LPA | ₹1,90,823 | ₹2,400 | ₹1,56,134 |
| 30 LPA | ₹2,28,988 | ₹2,400 | ₹1,80,693 |
It lowers your income tax only in the old regime
In the old regime, the professional tax you pay is deducted from your salary income (section 19 of the Income-tax Act 2025). The new regime, which applies unless you choose the old one, does not allow the deduction (section 202(2)(a)). Compare the two regimes.
Punjab professional tax, in short
How much is professional tax in Punjab?
Punjab charges a development tax of ₹200 a month, ₹2,400 a year, on salaried people whose taxable income is above the basic exemption limit. Its law still refers to the Income Tax Act, 1961, so how that limit applies under the 2025 Act is not confirmed; check your payslip.
Is professional tax deductible from income tax in Punjab?
Only in the old regime, where the professional tax you pay is deducted from your salary income under section 19 of the Income-tax Act 2025. The new regime, which is the default, does not allow it.
Professional tax in other states
- Maharashtra₹200 a month and ₹300 in February at ₹50,000 a month
- Karnataka₹200 a month and ₹300 in February at ₹50,000 a month
- Tamil Nadu₹1,250 each half-year at ₹50,000 a month
- Telangana₹200 a month at ₹50,000 a month
- Andhra Pradesh₹200 a month at ₹50,000 a month
- West Bengal₹200 a month from April to September 2026, then ₹140 a month from October 2026 under the proposed schedule at ₹50,000 a month
- Gujarat₹200 a month at ₹50,000 a month
- Madhya Pradesh₹208 a month for eleven months and ₹212 in the twelfth at ₹50,000 a month
- Kerala₹1,250 each half-year at ₹50,000 a month
- Bihar₹2,000 a year at ₹50,000 a month
- OdishaRepealed from April 2026 by ordinance; check with your employer
- Delhi, Haryana, UP and RajasthanNo professional tax that we could find
Work out your whole salary
- In-hand salary calculatorCTC to monthly in-hand, with your state
- Salary breakup calculatorEvery component of your CTC
- Income tax, old vs newWhich regime leaves you more
These figures are estimates based on the information you entered and the rules for tax year 2026-27 under the Income-tax Act 2025 as it stands after Budget 2026, EPFO notifications and state professional tax schedules. They are general information, not tax, financial or legal advice. Your actual in-hand salary can differ, for example because of your company's salary structure, variable pay, PF rules, your regime choice, TDS timing or your state. Check your payslip, or ask your payroll team or a chartered accountant, before relying on these figures.